Buying a home in Nigeria can be both frustrating and rewarding. For some, failing to seek answers to the right questions (the Whys, Wheres, and Whens) mostly ends up as a frustrating endeavour, but for those who carry out their due diligence, it often proves a fruitful venture. So delve into the world of property knowledge to ensure you are on the winning side. To buy a home, you need to know the following:
What is the purpose?
Nigeria’s property climate is highly unpredictable. Different locations offer different risks and rewards. So before committing to any purchase agreement, ask yourself, why am I buying? An honest answer will determine the location of the property, the type (an apartment building, estate, or mansion), your valuation, and your willingness to commit additional resources.
The Cost Implications
Price is paramount in any agreement, but beyond the going rate, there are additional fees you will be expected to pay. As the buyer, you will be required to incur the processing cost of the transaction, which normally amounts to 10 percent of the selling price. Most times, this is paid to the lawyer organising the deal. There is also a Capital Gain Tax levied at 10 percent of the difference between the sale price and the original acquisition.
Beware of the law
A significant portion of the Nigerian populace are unaware that an individual cannot own a piece of land within the country’s borders. The Land Use Act of 1978 is said to have converted all land to state property, hence the government oversees the management of the entire land mass. To acquire a landed property outrightly, ensure your purchasing documents include a consent of the state governor, often sealed under the Certificate of Occupancy (C of O).
There are several means to seek funding for a property purchase. The recently established Nigeria Mortgage Refinance Company to supplement the long-standing Federal Mortgage Bank of Nigeria. Both have a primary mandate to provide financial assistance to those seeking to acquire a home. At GTBank, there is loan dedicated facility known as GTMortgage, which offers credit facilities to customers whose salaries or business proceeds are domiciled with the Bank to part-finance the acquisition of residential property in selected cities within the country, while private investment firms are reserving capital for those willing to seek external funding for their property projects.
Buying a house is less expensive compared to building one. Buying a house might be the most preferred option in a situation where you really need to move in quickly. Again, most of the times, building your house might require you to go towards the outskirts of the city as these are where most of the vacant lands for sale are found.