- November 29, 2019
- Posted by: admin
- Category: Investment, Real Estate
Land investment myths are popular for inducing tension, anxiety, and confusion. Am I too young to invest in property? Are property investments safe? What if the prices fall? Do I need a lot of money to buy a land? And so on. These are the kind of questions that cloud our minds when it comes to investing in land. Although these land investment myths are popular, they are false. Below are some popular myths and the fact of land investment in Nigeria.
- Investing is only for the extremely wealthy
While land has been part of the millionaire’s portfolio for thousands of years, it is no longer available to just the wealthy. With more sophisticated investments being structured, such as dedicated real estate/land funds, and the emergence of land banks, it’s possible to invest in land from as little as a few thousand naira per purchase.
#Fact 1: Investing in real estate is not only for the extremely wealthy.
- I need a lot of money to buy a land
Over time, this myth has been popular among many Nigerians. The general belief is that land is expensive and can only be acquired by the rich. Although, land acquisition has been a strong part of the investment portfolio of millionaires, but this does not make it an exclusive right only the rich can enjoy.
The digital age has made this untrue myth easier to spot. In the past, many held the belief that you need to have several millions of naira to buy a land. However, a reliable property agency has several listings of affordable land on its website of which you can see online.
#Fact 2: You don’t need a lot of money for land investment in Nigeria.
- Land is land. So, why pay higher for some land?
Land value in terms of price differs based on various factors including location of the land, size of land, proximity to access roads and among others. This means that not all land is the same and you need to have all these considerations in mind as you plan to buy land. Buying low and selling high is how people make a profit, but this does not always mean that the cheapest piece of land is the only one with the potential to earn a higher return. In some cases, inexpensive land lacks potential. There may be environmental concerns or any number of other issues that prevent it from having value.
#Fact 3: Land varies in price and value. All lands are not the same.
- Land value grow slowly
Nothing could be further from the truth. The type of land you purchase will have a very big effect on its ultimate growth in value & potential for resale. If the land is far away from residential areas and urban areas, its value will grow very slowly over time, unlike a land that is close to the city. For example, not all land is going to be suitable to residential development. If you purchase land that is of a non-residential nature, there may be little scope for you to resell it to a developer. Additionally, where you buy land determines how fast its value increases. Location, immigration, economic activities and much more will affect the value of your land.
#Fact 4: Value of a land is not static. Value is affected by market factors in the real estate sector.
- Investing in land requires specialist knowledge and skills
Like any investment, there are always going to be risks. Any sensible investor will obviously try to minimize the risk they are exposed to. But having said that, there is no special technical knowledge required. You don’t need to know how to take soil samples, subdivide plots of land for sale, grade roads or be an expert in the building trade. If you need this kind of expertise, you can hire a specialist. You can find out about the investment land available in your area quickly and simply by using a real estate agent.
#Fact 5: All information about an investment can be asked and known.
- I need to buy now or the deal will go away
Be wary of ‘deals’ that have an urgency attached to them. Unless available land in a specific area is scarce, you should never be in a hurry to buy otherwise you will encounter land scammers. You could see red flags and ignore them just because of the offer at hand. Take time to know about the land, the seller, history of ownership, land act regulations and then sleep on it.
#Fact 6: Never make an investment in a hurry.