Land Banking in Nigeria; 3 Main Factors to Consider

A smart person like you already knows that one of the safest ways to store money and increase your wealth is land banking. Land Banking in Nigeria comes with certain complexities, and it is always important to carry out your due diligence without being carried away by side attractions.

Land Banking in Nigeria goes beyond looking for untapped or vacant land that is cheap, you need to ensure that;

• The land is closer to the main city centre
• it is located in an area with potential infrastructure growth
• it’s free from government acquisition
• the investment potential is great.

Whether you are buying an ordinary land scheme, or you are going into a land banking deal, it is always important to carry out your due diligence. Always do everything to safeguard yourself from;

• Land Grabbers.
• Property Litigations
• Compulsory Acquisition by the Government.
• Illegal Construction
• etc.

Land Banking in Nigeria

To safeguard yourself from pitfalls that may arise in a land banking deal in Nigeria, please always ensure that you comply with the following;

#1 Take a look at the Location 

In any business setup, location is always an important factor, if not the first. To land bank, you need to look for a location where the population is fast growing. The location that you know that in the next 10 years the population would have grown and development would have taken place.

#2 Carry out Feasibility / Investment Potential Studies 

It’s also important to acquire the land by tracking locations that are best for investment and that, you understand will soon develop. To track, you can use Google earth to see the satellite imagery of the area. This will enable you to see if the place can be suitable for the kind of development you have envisaged.

#3 Do a Search Via the Land Registry

You should as a matter of mandamus, check that the land is not government acquired land. The government acquired land is a portion of land demarcated by either federal, state or local government for specific developmental purposes. This you can do by tracking or chatting the surveyed plan document and if the land isn’t surveyed, go to the ministry of land. If the land is free, go for it.

If you are buying the land most especially in Lagos, make sure that the said land isn’t under any form of litigation or government acquisition.

Learning Review

Make sure you carry out proper real estate due diligence before closing the juicy land banking deal, you can do it either by yourself or your reputable real estate consultant/development expert.

This blog post might help you out;

8 Ultimate Ways on How to Investigate a Landed Property in Nigeria

Whatever the approach you adopt, never forget to carry out your real estate due diligence around these;

1. Location Consideration
2. Investment Potentials
3. Search via the Land Registry

Please seek the right knowledge or work alongside an expert in the field, and reduce your risk of being a victim of property fraud. Carrying out proper due diligence will prevent you from losing your hard-earned investment.

You can also find this blog post useful;

14 Important Documents / Terms you should know as a First Time Property Buyer in Nigeria

Disclaimer;

The contents of this article are for informational purposes only. Always do your research before you take any real estate advice.

ABOUT THE AUTHOR

I am Bolaji Afolabi. I created bolajiafolabi.com to teach you about real estate and tech-based business opportunities. I work as a full-time partner at Globalclique, a Real Estate + Technology Consulting Company. I am also a CIO at Ibugbe and Partners, a Real Estate Marketing and Development Consulting Firm in Lagos, Nigeria.