People who bought land in the 90s and held it till now are definitely smiling to the bank. Land was sold then for as low as ₦50,000 and now, the least anyone will sell it for is hundreds of thousands. Besides the reason above, this article will show you many other reasons why you must buy land in 2022.
Uses Of Land
People buy land for many different reasons. They can buy it for personal use, investment or recreational purposes. Below are a few specific reasons why people buy land:
- Residential development: Some people buy land to build residential houses. Either for themselves or in other to sell or rent out to others.
- Commercial development: This also has to do with building shops or office spaces and renting or selling for business purposes. Land can also be used to build factories and could be used as construction sites.
- Farming And Livestock Rearing: Farmers obviously need land to plant their crops and do other forms of agricultural activities. They also use the land to rear their animals.
- Timberland: Companies that deal in furniture and other products whose raw material is wood acquire stretches of land that have a lot of trees.
- Mining: People purchase land when they discover it has underground natural resources, which, needless to say, would be profitable to them.
- Selling: People buy land the way business people buy products to sell at a higher price.
What To Consider When Buying Land
Before we get into the benefits of buying a land in Nigeria, there are a couple of things you must know and consider before purchasing a land. A lot of people have been duped or got a bad deal when they bought land because they did not do due diligence.
You should look out for these things when looking to buy a piece of land:
1. Root Of Title:
To put it simply, root of title for a land are documents that show that the person who is going to sell the land has valid right to, and that the land is free of debt or liability. There are good and bad root of title. Making sure that the root of title for the land is good will save you from court cases or even losing the land after you get it.
2. The Seller’s Capacity:
You should know if the seller who is giving you the land is the beneficial owner of that land. If they are, they should provide you with a good deed of title. They must prove that they can compensate you in the event that someone else lays claim to the land and they must prove that the land is free of debt and liabilities.
This means that the land is in a court dispute where someone else is claiming the land is theirs. It also means there is debt, e.g mortgage, attached to the title of the land. You must investigate to make sure the land is free of these.
4. Vacant Possession:
This means that the land is free of any court dispute, and free of any physical impediment that will significantly affect someone from enjoying the land. You should first make a physical inspection before buying the land.
5. Land Use:
Certain lands are allocated for specific kinds of development (residential, commercial, etc.). You should know if a land you are about to buy is allocated for a specific kind of development to avoid your building being demolished.
Reasons To Buy Land
- When you buy land, especially if you are not building on it, you do not need to do any maintenance on it. You can have it without spending money, time or energy on it. Unlike cars or buildings that require renovations and maintenance. All you have to do is wait for the land to appreciate significantly and sell it off at a good price.
- Owning your own land gives you the ability to do what you want. You can grow some crops on it, which you can use for food instead of having to buy in the market. You can also sell what you grow on that land and make some extra income.
- As the population of people in Nigeria continually increases, land is becoming more limited in supply. This naturally means that the demand is steadily increasing. This is why land is an asset that appreciates very well and selling it can be very lucrative.
- Having your own land means that you now have the ability to own your own building. Everyone desires to be a landlord. There is a freedom that comes with having your own apartment and not having to deal with the problems of a landlord/lady or fellow tenants.
- Buying land is one of the safest investments you can make. It is a tangible asset; it cannot suddenly disappear or lose value like stocks and money. You can use land for different purposes and it will still be valuable.
- Unlike other types of businesses, real estate has very little competition. If a land owner owns a land in a particular area, anyone who comes to buy comes directly to the owner. No other land owner will be dragging the buyer.
These are a few of the reasons why you must buy land in 2022. If you missed your chance to buy this year, you can make plans for the next year. Remember, consult with people who are experts in real estate or have experience in buying land before investing in land.
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My name is Emmanuel Ejiga. Content lead of OG Capital
I am a writer. Technical writer, song writer, and sometimes fictional writer.