
7 Common Mistakes to Avoid When Buying Property in Nigeria
Buying property in Nigeria is a significant investment, but it can also be a complex and challenging process. From legal pitfalls to financial missteps, there are many potential mistakes that can derail your plans. Whether you’re a first-time buyer or an experienced investor, being aware of these common errors can help you make smarter decisions and secure your dream property. In this article, we’ll explore the top 7 mistakes to avoid when buying property in Nigeria.
1. Not Conducting Proper Due Diligence
One of the biggest mistakes buyers make is failing to conduct thorough due diligence. This includes verifying the property’s ownership, checking for encumbrances (e.g., liens or disputes), and ensuring the land is free from government acquisition. Skipping this step can lead to costly legal battles or even loss of the property.
Tip: Work with a lawyer or real estate professional to verify all documents, including the Certificate of Occupancy (C of O) and survey plans.
2. Ignoring Location and Infrastructure
Location is a critical factor in real estate, yet many buyers focus solely on the property itself without considering the surrounding area. Poor infrastructure, lack of amenities, or high crime rates can significantly affect the property’s value and livability.
Tip: Research the neighborhood thoroughly, visit at different times of the day, and consider future development plans.
3. Overstretching Your Budget
It’s easy to get carried away when buying property, but overstretching your budget can lead to financial strain. Many buyers forget to account for additional costs like legal fees, agency fees, stamp duties, and maintenance.
Tip: Create a detailed budget that includes all potential expenses and stick to it. Use a mortgage calculator to estimate your monthly payments.
4. Not Inspecting the Property
Buying a property without a proper inspection is a recipe for disaster. Hidden issues like structural defects, plumbing problems, or electrical faults can turn your dream home into a money pit.
Tip: Hire a professional inspector to assess the property’s condition before making an offer.
5. Skipping Legal Documentation
Some buyers, especially in rural areas, rely on verbal agreements or informal documents. This is a risky practice that can lead to disputes or loss of ownership.
Tip: Ensure all transactions are properly documented and legally binding. Key documents include the Deed of Assignment, Survey Plan, and Certificate of Occupancy.
6. Falling for Scams
Real estate scams are unfortunately common in Nigeria. Fraudsters may sell properties they don’t own, use fake documents, or disappear after collecting payment.
Tip: Always verify the seller’s identity and work with reputable real estate agents or lawyers. Avoid making cash payments without proper documentation.
7. Not Planning for the Future
Many buyers focus on their immediate needs without considering long-term factors like resale value, rental potential, or future family needs. This can limit your options down the line.
Tip: Think about your long-term goals and choose a property that aligns with them. Consider factors like proximity to schools, workplaces, and transportation.
How Can Bamigbola Consulting Help
At Bamigbola Consulting, we understand the challenges of buying property in Nigeria. Our team of experts is here to guide you through every step of the process, from due diligence to legal documentation. We’re committed to helping you avoid these common mistakes and make informed decisions.
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