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Mistakes to Avoid When Buying Property in an Estate in Lagos by Dennis Isong

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Investing in real estate, especially in Lagos, Nigeria, can be a lucrative opportunity, but it’s not without its pitfalls. Lagos is known for its dynamic property market, with a wide range of options, including estates.

However, navigating this market requires careful planning and consideration to avoid common mistakes that could lead to financial losses or legal issues.

In this article, we will highlight the mistakes you should avoid when buying property in an estate in Lagos.

● Lack of Due Diligence
One of the most crucial steps when buying property in an estate is conducting thorough due diligence.

Failing to investigate the property’s history, ownership, and legal status can be a costly mistake.

Make sure to obtain all necessary documents, including a Certificate of Occupancy (C of O) and a survey plan. Verify the property’s ownership and history to ensure it is free of disputes and encumbrances.

● Ignoring Location Considerations
Lagos is a sprawling city with varying property values depending on location.

Failing to consider the location carefully can lead to dissatisfaction with your investment.

Evaluate the estate’s proximity to essential amenities like schools, healthcare facilities, markets, and transportation hubs.

Also, consider the security and infrastructure in the area.

● Overlooking the Reputation of the Estate Developer
The reputation and track record of the estate developer are crucial.

Avoid buying property in an estate developed by a company with a history of legal issues, subpar construction quality, or delays in project delivery.

Research the developer’s past projects and seek feedback from previous buyers.

● Not Inspecting the Property
Never buy property without physically inspecting it. Pictures and descriptions can be misleading, and visiting the site allows you to assess the property’s condition, potential renovation needs, and whether it aligns with your expectations.

● Skipping a Property Inspection
In Lagos, some properties may be subject to flooding during the rainy season.

Ignoring a proper inspection, which includes checking for flood risk and drainage systems, can lead to devastating consequences.

Engage a qualified surveyor or engineer to assess these factors.

Avoid buying property in an estate developed by a company with a history of legal issues, subpar construction quality, or delays in project delivery

● Overextending Financially
Avoid the mistake of stretching your finances too thin to acquire property.

Carefully assess your budget, including the purchase price, legal fees, taxes, and potential renovation costs.

Create a realistic financial plan to ensure you can comfortably afford the property without jeopardizing your financial stability.

● Neglecting Legal Assistance
Property transactions in Lagos can be complex, and legal guidance is essential to protect your interests.

Hire a reputable real estate attorney who specializes in Lagos property law. They can review contracts, conduct due diligence, and ensure all legal requirements are met.

● Not Understanding Estate Rules and Regulations
Each estate in Lagos may have specific rules and regulations governing property ownership and management.

These rules can affect your ability to use, rent, or resell your property. It’s essential to understand and abide by these regulations to avoid potential conflicts or penalties.

● Not Considering Future Growth
Lagos is a rapidly growing city, and the landscape can change significantly in a short time.

Failing to consider potential developments and infrastructure projects in the area can lead to missed opportunities or reduced property value appreciation.

Research upcoming projects and urban planning initiatives that could impact the estate you’re interested in.

● Underestimating Maintenance Costs
Owning property in an estate comes with ongoing maintenance responsibilities and associated costs.

These can include security fees, waste management, and common area upkeep.

Ensure you are aware of these expenses and budget for them accordingly to avoid financial strain in the long run.

● Relying Solely on Verbal Agreements
In real estate transactions, verbal agreements hold little to no legal weight.

Always insist on putting all agreements in writing, including terms, conditions, and any promises made by the seller or developer.

A written contract protects your interests and ensures both parties are held accountable.

● Rushing the Decision-Making Process
Buying property is a significant decision that shouldn’t be rushed. Take your time to thoroughly research, evaluate, and compare different options.

Don’t succumb to pressure from developers or agents to make a hasty decision. A well-informed and patient approach can lead to a more successful purchase.

● Neglecting Property Resale Value
While you may be focused on your immediate needs and preferences when buying property, it’s essential to consider its resale value. Market conditions can change, and you might need to sell the property in the future.

Choose a property that has the potential for appreciation and appeal to a broad range of buyers.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

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Real Estate

Differences Between Properties In Lagos  Island And Lagos Mainland

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By Dennis Isong

Lagos, the  economic powerhouse of Nigeria, is divided into two distinct regions: Lagos Island and Lagos Mainland.

Each region offers unique qualities, economic opportunities, amenities, and investment prospects, shaping the lifestyle and real estate landscape of the city.

While Lagos Island is known for its upscale neighborhoods, commercial hubs, and cosmopolitan allure, Lagos Mainland provides a more diverse and affordable environment with growing industrial and tech sectors.

Understanding the differences between Lagos Island and Lagos Mainland is essential for anyone looking to navigate the city’s dynamic property market, assess economic opportunities, and make informed investment decisions.

This exploration delves into the key aspects that distinguish these two regions, offering insights into their qualities, economic landscapes, amenities, estate prospects, property prices, and investment opportunities.

Qualities of Lagos Island and Lagos Mainland

Lagos Island:Geography: Lagos Island is a part of the Lagos metropolitan area and includes areas like Victoria Island and Ikoyi.

Urbanization: It’s a commercial hub with a mix of modern high-rise buildings and historical architecture. Lifestyle: It is characterized by a fast-paced, cosmopolitan lifestyle with a higher cost of living.

Population: More affluent population, with a higher concentration of expatriates and wealthy Nigerians. Lagos Mainland: Geography: Lagos Mainland encompasses areas like Ikeja, Surulere, and Yaba. Urbanization: It’s more residential and industrial, with a mix of middle to low-income neighbourhoods.

Lifestyle: The lifestyle here is more laid-back compared to Lagos Island, with diverse communities and a broader range of socioeconomic classes.

Population: More diverse and generally less affluent than Lagos Island. Economic Opportunities in Lagos Island and Lagos Mainland Lagos Island: Business Hub: Major financial institutions, multinational corporations, and tech companies have their headquarters here.

Tourism and Hospitality: A hotspot for tourists, with numerous hotels, restaurants, and recreational facilities. Commerce: High-end retail stores, shopping malls, and markets like Balogun Market. Lagos Mainland: Industrial and Manufacturing: Many industrial zones and manufacturing plants are located here. Tech and Startups: Areas like Yaba are becoming tech hubs with a growing number of startups and tech companies. Retail and Services: Numerous small to medium enterprises, retail businesses, and service providers.

Understanding the differences between Lagos Island and Lagos Mainland is essential for anyone looking to navigate the city’s dynamic property market

Amenities in Lagos Island and Lagos Mainland Lagos Island: Healthcare: High-end private hospitals and clinics. Education: Prestigious international schools and universities. Recreational: Luxury gyms, spas, parks, and beaches. Infrastructure: Better roads, reliable electricity, and water supply compared to the Mainland.

Lagos Mainland: Healthcare: Mix of private and public hospitals, with more public health facilities. Education: A range of public and private schools, and several tertiary institutions.

Recreational: Public parks, sports complexes, and community centres. Infrastructure: Generally less developed infrastructure with more traffic congestion and less reliable utilities.

Estate Prospects in Lagos Island and Lagos Mainland Lagos Island:

High-End Developments: Numerous luxury apartments, gated communities, and waterfront properties.

Real Estate Demand: High demand due to commercial importance and affluent lifestyle. Property Trends: Increasing development of high-rise buildings and mixed-use developments.

Lagos Mainland: Residential Developments: More affordable housing options, with a focus on middle-class estates.

Real Estate Demand: Steady demand due to growing population and urban expansion. Property Trends: Development of new residential estates and renovation of older properties.

Property Prices in Lagos Island and Lagos Mainland Lagos Island:

Residential: Significantly higher prices, with luxury apartments and houses ranging from millions to billions of Naira.

Commercial: High rental and purchase prices for office spaces and retail outlets. Lagos Mainland: Residential: More affordable housing, with prices varying widely depending on the area but generally lower than the Island.

Commercial: More affordable commercial properties, with lower rental and purchase prices compared to the Island. Investment Opportunities for Lagos Island and Lagos Mainland Lagos Island:

Real Estate: High return on investment due to premium property prices and constant demand. Tech and Finance: Opportunities in tech startups, fintech, and corporate services. Hospitality and Tourism: Profitable investments in hotels, restaurants, and entertainment.

Lagos Mainland:Industrial and Manufacturing: Investment in factories and production facilities.

Tech and Innovation: Growing tech ecosystem, especially in Yaba. Real Estate: Opportunities in affordable housing projects and commercial properties catering to the middle class.

Lagos, Nigeria, is divided into Lagos Island and Lagos Mainland, each with distinct characteristics and opportunities.

Lagos Island, comprising areas like Victoria Island and Ikoyi, is a commercial and financial hub with a cosmopolitan lifestyle, high-end amenities, and affluent population.

It offers high property prices and substantial real estate investments. Economic opportunities here are concentrated in finance, tech, and hospitality sectors.

In contrast, Lagos Mainland, which includes areas like Ikeja, Surulere, and Yaba, is more residential and industrial, with a broader socioeconomic range.

It features diverse communities, more affordable housing, and growing tech and industrial sectors.

The Mainland provides steady demand for real estate, affordable property prices, and investment opportunities in manufacturing, tech startups, and middle-class housing developments.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE.

For Questions WhatsApp/Call 2348164741041

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Real Estate

Effects of Hyperinflation on Nigeria’s Real Estate

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By Dennis Isong

Definition of Hyperinflation: Hyperinflation is an extremely rapid and out-of-control increase in prices, often exceeding 50% per month. Unlike regular inflation, which is a normal rise in prices over time, hyperinflation involves a collapse in the value of currency, causing prices of goods and services to skyrocket.

This economic phenomenon severely erodes the purchasing power of money, leading to a loss of confidence in the currency and creating chaos in the economy.

Causes of Hyperinflation Several factors can trigger hyperinflation, including:

1. Excessive Money Supply:

When a country prints an excessive amount of money without corresponding economic growth, it can lead to hyperinflation.

This often happens when governments finance large budget deficits by creating new money.

2. Loss of Confidence in the country’s legal tender: If people lose confidence in a currency’s value, they may rush to spend it quickly, leading to rapid price increases.

3. Demand-Pull Inflation: When aggregate demand in an economy persistently exceeds aggregate supply, it can cause prices to rise uncontrollably.

4. Cost-Push Inflation:  Increases in the costs of production (such as wages and raw materials) can lead to higher prices. If this happens on a large scale, it can contribute to hyperinflation.

5. Exchange Rate Depreciation: A sharp decline in the value of a country’s currency compared to others can make imports more expensive, fueling inflation.

Effects of Hyperinflation on Nigeria Real Estate

Hyperinflation has profound effects on Nigeria’s real estate sector: 1. Value Erosion: Hyperinflation erodes the value of money, making it difficult to preserve the value of real estate investments. Property owners may find that the real value of their assets decreases over time, even if nominal prices increase.

2. Investment Deterrence:

The uncertainty and instability caused by hyperinflation deter both domestic and foreign investment in real estate. Investors seek stable environments, and hyperinflation creates too much risk.

Nigerians in the diaspora can influence the real estate market by buying properties, driving demand, and potentially stabilizing prices in certain segments of the market.

3. Construction Costs:

The costs of building materials and labor can skyrocket during hyperinflation, making new construction projects prohibitively expensive. This leads to a slowdown in real estate development.

4. Rental Market Impact:

Rent prices can become highly volatile. Landlords may struggle to set rents that keep up with inflation, while tenants may find it increasingly difficult to afford housing.

5. Financing Difficulties:

Hyperinflation disrupts the lending market. Banks may be unwilling to issue long-term loans, and interest rates can become extraordinarily high, making mortgage financing unaffordable for many potential homeowners.

How it Affects Nigerians in the Diaspora Positively While hyperinflation brings significant challenges, it can have some positive effects for Nigerians in the diaspora:

1. Investment Opportunities:

Nigerians living abroad with access to stable foreign currencies can find investment opportunities in the domestic real estate market.

As local property values plummet in real terms, diaspora Nigerians can purchase properties at relatively lower prices, potentially yielding significant returns if and when the economy stabilizes.

2. Remittance Value:

Remittances sent back to Nigeria by diaspora Nigerians can gain substantial value. As the local currency depreciates, the foreign currency received through remittances can go much further, enabling recipients to buy more real estate or other assets.

3. Support for Family and Community:

Diaspora Nigerians can provide crucial financial support to their families, helping them cope with the economic turmoil. This support can include funding for housing, which becomes more pressing during hyperinflation.

4. Market Influence:

With increased purchasing power, Nigerians in the diaspora can influence the real estate market by buying properties, driving demand, and potentially stabilizing prices in certain segments of the market.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.

He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE.

For Questions WhatsApp/Call 2348164741041.

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Real Estate

Property Features To Consider Before Investing,  by Dennis Isong

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It may be tasky for Nigerians in the diaspora to be able to identify what a property entails if they have not been in Nigeria for a while.

However, when property features and neighborhoods are highlighted in a property listing, it helps with making informed decisions.

Nigerians in the diaspora considering investing in property back home should prioritize assessing the features of a property thoroughly for several reasons:


1. Ensuring Value for Money:
The neighborhoods of the property’s location significantly influences its value. Proximity to essential amenities like schools, hospitals, markets, and transportation can enhance a property’s attractiveness and market value.

The dimensions of the property features, including the number of rooms, bathrooms, and overall layout, should match the buyer’s needs and justify the price.

Evaluating the condition of the property, including the quality of construction, age, and any need for repairs or renovations, helps ensure that the investment is sound and that there won’t be hidden costs post-purchase.


2. Maximizing Rental and Resale Potential:
Properties with modern amenities (e.g., reliable water supply, power backup, security systems) and features (e.g., parking spaces, green spaces) tend to higher rents and better resale values.

Understanding Lagos real estate market can help choose properties that are in demand, ensuring they can quickly find tenants or buyers.

3. Avoiding scams and Fraud:

Cross-checking the advertised features with the actual property helps verify the legitimacy of the deal. Scammers often misrepresent properties to deceive buyers.

Ensuring the property has a clear title and all necessary documentation prevents legal disputes and confirms ownership.


4. Personal Satisfaction and Suitability:
For those planning to use the property personally, it’s crucial that the property aligns with their lifestyle and preferences. Features like the number of bedrooms, kitchen size, and backyard space can significantly impact living quality.

Features that allow for future expansion or modifications can be crucial for long-term satisfaction and adaptability.


5. Investment Stability and Appreciation:
Properties in economically stable and growing areas tend to appreciate more reliably, providing a secure investment.

Areas with ongoing or planned infrastructure developments (like new roads, public transport, or commercial hubs) often see a boost in property values over time.

HOW CAN YOU CONFIRM THE FEATURES AND NEIGHBORHOODS OF A PROPERTY LISTING IN ABSENTIA?

1. Ask the realtor to do a video.

2. Send a trusted person to confirm.

3. Do a video call for confirmation.

4. Ensure what was listed match with what’s shown in the video.

5. Check the map.

I hope you learned something new? Kindly scroll down to save my number and send a message.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.
He Helps Nigerians in the Diaspora to Own Property In Lagos Nigeria STRESS-FREE.
For Questions WhatsApp/Call 2348164741041

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