In the real estate circle, there are beliefs, ideas and submissions that have been commonly maintained for such a long time that they are true but in reality, they are nothing but land investment myths.
Before we highlight some land investment myths in Nigeria, let’s start by defining what a myth is.
What is a Myth?
A myth is an idea or belief that is widely held but is actually false. The fact that such ideas and beliefs are popular doesn’t make them true. Below are our top 5 land investment myths in Nigeria.
1. Only the Rich Can Buy Land
Over the years, this myth has eaten into the psyche of millions of Nigerians. The general belief is that land is expensive and can only be acquired by the rich and powerful but this is far from true.
For many years, land acquisition has been a strong part of the investment portfolio of millionaires and billionaires but it this does not make it an exclusive right only the rich can enjoy.
The online space has made this myth easier to spot. In the past, many held the belief that several millions of naira to buy a plot of land or two. Today, however, a reliable property website has several a growing list of affordable land on its website.
Fact: You don’t need to be extremely wealthy to invest in land.
2. Any Land You Buy is a Good Investment
There is a belief that land investment is always good regardless of factors like location, pricing and condition of the land. This a myth that has often come back to haunt those who have wrongly bought into this idea.
There have been instances of people buying land at inflated prices and finding themselves in a mess. What happens when you buy land at an inflated rate is that it takes an extremely long time for you reap financial gains from your investment.
Fact: Buying land at an inflated rate is never a good idea.
3. Buying Land is Not Simple and Straightforward
One of the biggest land investment myths in Nigeria is that buying land is as complicated as buying a nuclear weapon at a supermarket. This is a myth that real estate experts have taken up the responsibility to correct.
Buying land requires research but this does not mean it is a complicated process. When you want to buy land, you have to be very thorough to ensure you avoid complications in the future.
Fact: When buying land, there are certain principles that should be followed.
4. You Can Buy Land Yourself
A plot of land is not a bar of chocolate that you pick off the shelf of a supermarket, pay for and walk away with. That would have been nice but land acquisition does not work that way.
There are laws that regulate the acquisition and selling of land. The idea that you can buy land by yourself regardless of how much you know about it is a land investment myth.
To cut down the risk involved in land acquisition, you are in an advantaged position when you go through reliable real estate professionals who have a good grasp of trends in the real estate sector.
You don’t want to lose your money to fraudsters as many have done in the past. Consider rising on the experience of professionals.
Fact: Work with a reliable real estate professional to cut down risks involved in investing in land.
5. Buying Land at a Cheap Cost is All That Matters
Everyone loves cheap things and land is no exception. However, the idea that when buying land, the only thing that matters is its affordability is one of the popular land investment myths in Nigeria.
In the real estate sector, it is possible to buy land that costs you a lot of money yet comes with the possibility of giving you high returns on your investment. This can be achieved via eventually getting top-notch tenants or having low maintenance cost on the land and property when it is eventually constructed.
It is, however, possible to buy land at a cheap price yet find yourself owning land that is extremely slow in yielding returns or is expensive to maintain. These are realities you must understand especially dealing with the myth that cheap land is always a good investment.
Fact: Cheap land that is expensive to maintain or fails to yield returns on investment is not worth it.
Investing in the real estate sector is interesting and rewarding. You can start small and grow your investments with time. You can buy land for personal building purposes or as an investment you can cash in on what the land appreciates in value with the passage of time.
