- HISTORICAL DETAILS
- LOCATION
- DOCUMENTS
- PRICE
- SECURITY
- REAL ESTATE AGENTS AND DEVELOPERS
- PRECISION, SPEED AND ACCURACY
A landed property defined as an asset that generates income for the owner without the owner having to do the actual work of the estate.
Real estate is the land along with any permanent improvement attached to the land, whether natural or man-made including water, trees, minerals, buildings, homes, fences and bridges.
Your home is a Real Estate, so also is vacant land you might owe. Real Estate can be a skyscraper in New York City of a piece of unimproved desert land that cannot be built. Real estate also refers to the production, buying and selling of landed properties when I buy or sell a home, I am engaging in real estate investing. I can also invest in real estate without buying a landed property but by simply buying the stocks of home builders.
Real Estate is one of the most reliable global sources of prosperity; most especially in Africa and other countries where the rate of inflation is generally not controlled and there is little or no property tax.
For example: A standard plot of land measuring 100 x 60 metres (about 600 square metres) in OLUYOLE ESTATE EXTENSION here in IBADAN, OYO STATE, SOUTH WEST, NIGERIA purchased for 40,000.00 Naira (Forty Thousand Naira) about 23 years ago that was in June, 1998, sells today that is July, 2021 for 20,000,000.00 Naira (Twenty Million Naira).
This represents a total capital increase of about 50,000% in 23 years and a yearly average increase of 2,173%.
Even Bitcoin with all his fame and glamour only made about 4,930% in 7 years; that is from 1,242 US Dollar in 2013 November to 61,205 US Dollar in March, 2021; thereby, giving us a yearly average increase of only about 705%.
This phenomenal increase in value of this landed property came with little or no effort and absolute peace of mind.
This is not always the case with Bitcoin, other crypto coins and many other investments. Bitcoin has since crashed by over ______ % and currently (July, 2021) selling for ________ US Dollar.
Please, see our table on Bitcoin price history for more details.
BITCOIN
PRICE HISTORY (US DOLLAR)
| S/N | MONTHS | US DOLLAR |
| Jan 2019 – Mar. 2010 | Less than 0.01 | |
| May 2010 | 1.00 | |
| Feb 2011 – Apr. 2011 | (1,242) | |
| Nov. 2013 | 530 | |
| April 2014 | 1,290 | |
| 2 – 3 March, 2017 | 2,000 | |
| 20 May, 2017 | 5,013.91 | |
| 1September, 2017 | 8,100.00 | |
| 17 – 20 Nov. 2017 | 19,783.06 | |
| 17 Dec. 2017 | 6,300.00 | |
| 31 Oct. 2018 | 50,000 | |
| 16 March, 2020 | 10,944 | |
| 27 July, 2020 | 13,000 | |
| 26 Oct. 2020 | 19,850.11 | |
| 30 Nov., 2020 | 28,000 + | |
| 27 Dec., 2020 | 41,973 | |
| 9 Jan., 2021 | 50,000 | |
| 16 Feb., 2021 | (61,205.00) | |
| 14 March, 2021 | ||
| 20. | July, 2021 |
We hope to present a detailed analysis of crypto currencies and investing in our future blogs.
HISTORICAL DETAILS
The history of a landed property starts from this morning till as far as possible into the past. The historical details of my landed property must include:
- Original owners of the land
- List of buyers to date
- Reasons for sales
- Spiritual background
- Legal issues, if any?
- Existing titles to the property
- Chain of ownership
- Sales history
- Any break in sequence of ownership between first and current owner
- Sellers identity verification
- Any dark negative past
- Any relevant interesting event
- Why are the next door neighbours not buying the property
Reliable sources of vital information
- Next door neighbours
- The neighbourhood
Please, note that in every neighbourhood or community, there is always a tried, tested and trusted elder, who has reliable information to buy right.
Identify, locate and make very good use of such.
LOCATION
The land usage goes a very long way in determining its location. The followings are the 6 major types of land uses:
- Residential
- Commercial
- Industrial
- Institution and public buildings
- Farming
- Transportation
A good location can mean different things to different people depending on my personal needs and preferences. The value of a landed property varies greatly with its location; it rises and falls with the value of the properties around it. The factors to consider as my general guide include:
- Accessibility: Near a city’s major transit routes and more than one point of entry.
- Appearance: Presence of large trees, quality landscaping and nearby parks or community space.
- Proximity to amenities: Such as shopping centres, grocery stores, shops, restaurants and good schools.
- Safety: Good security network.
- Future development plan: I must ensure that my next landed property is not just desirable, but has objective qualities that surely guarantee the value appreciation of my investment over time.
- Proximity to my place of work for personal residential properties.
- Landed properties in the cities that have little or no room for expansion tend to attract greater market value than those in areas with plenty of room.
DOCUMENTS
Landed property documents are vital parts of any property investment; they include:
- SURVEY PLAN
This is one of the most important documents; I must obtain from the prospective SELLER. It must be duly approved and registered with the department of survey and lands records.
With this document, I can carry out a geographical SEARCH on the prospective property.
- LAND SALES AGREEMENT or DEED OF ASSIGNMENT
This is the second important document require to carry out a personal search.
It is the main legal document that acts as proof of sales and transfer of ownership of the property from seller to buyer.
The terms and conditions of this transaction must be clearly stated in this document. This document also traces the history of how the property has reached the current owner to date.
- CERTIFICATE OF OCCUPANCY (C of O) or GOVRNMENT ALLOCATION or GOVERNOR’S CONSENT
This document is issued by State Government in Nigeria to land owners and property buyers as legitimate proof of ownership after requirements have been met, other documents include.
- GOVERNMENT GAZETTE or MASTER PLAN
This is a document that records and states the AREAS the government has willingly released to a family or community for future expansion.
- THE RECIEPTS
- THE BUILDING PLAN
- VIDEO COVERAGE or RECORDING of payment and release of landed property to new owners. All these documents must ensure that the interests of both parties (the Buyer and the Seller) are clearly addressed. I am expected to carry out due diligence by:
- Having a lawyer conduct a title examination, to verify the authenticity of these documents.
- I can also carry this out personally by presenting them for verification at the Land’s Registry of the State Secretariat.
- Is the landed property subject to any pending lawsuit? If so, the power of control of such land is vested in the court. I am therefore expected to conduct a thorough legal investigation before buying my next landed property.
PRICE
I can conduct a comparative market analysis to adequately price my landed property; by checking out nearby recently sold properties for example during the last one to six months.
Please, note that it is better to pay more to secure the golden opportunity or acquiring a good landed property than to lose out and miss it by under pricing.
This is because slight over pricing has little or no effect in the real estate world, particularly in regions with relatively high value growth rate.
The total amount payable to buy my next landed property will also include other costs:
- Survey Plan
- Legal Fee
- Agency Fee
- Cost of obtaining other official documents like the Certificate of Occupancy.
- Perimeter fencing of the landed property, if necessary.
Factors affecting PRICE include:
- The position and location of the property.
- Lot size or the plot size
- Terms and conditions of sale; is seller under duress?
- Physical features such as fencing, deep wall, gate house, borehole
- Hydrological, geological and environmental survey
- Research recent comparable sales; price per square meter
- Proximity or location in a region of high environmental risks such as: pollution, flooding, mudslides, fire outbreak.
SECURITY
The security of a landed property can be viewed from two angles:
First: The security of my OWNERSHIP of the landed property itself.
Second: The general security in the neighborhood where the landed property is located.
It is interesting to note that some properties are being offered for sale for security related reason; such must be avoided at all costs.
Land tenure refers to the status of individual or group in relation to a property; it can be freehold, leasehold, conditional collective and communal.
While, land tenure security is the right to remain on your land, make use of and profit from your land in ways you value, as long as they do not harm others.
The perfection of land transaction to secure ownership is accomplished by the processing of the certificate of occupancy from the state government.
GENERAL SECURITY IN THE NEIGHBOURHOOD
Is there a good reliable security network in place, in the neighbourhood? This is fully dependent on the general security in the nation, region, state, and city and most importantly in the locality.
We must equally access the level of risk of environmental hazards that may result from earthquakes, flooding, volcanic eruptions, landslides, hurricanes, wildfires, bush fires, heat waves, pandemics, tornadoes, cyclones, tsunamis etc.
REAL ESTATE AGENCY AND DEVELOPERS
They are also called Estate Brokers and Realtors.
Real Estate Agents work with landed property buyers and sellers during property sales and purchases providing support, guidance and assistance with tasks, including:
- Listing of properties
- Visiting landed properties for sale
- Connecting clients with legal and financial professionals
- Locating properties for sale
- Negotiating landed properties’ sales
- Overseeing leasing or renting activities
- Marketing and promotional activities
The following skills are essential for a good estate agent:
- Competent negotiators
- Excellent promotional and marketing skills
- Thorough knowledge of the real estate market
- Excellent client service skills
- Strong time management and organizational skills
- Effective verbal and written communication skills
REAL ESTATE DEVELOPERS
Real Estate Developers tasks include:
- Buying of landed properties
- Financing of real estate deals
- Building and having builders projects
- Creating, imaging, controlling and orchestrating the process of development from beginning to end.
Technically defined as legal and physical steps taken to convert raw land to developed land; after development is completed the developer usually markets the land to a home builder or other end users for uses such as warehouse or shopping centre.
The services of those two are not free; from 1-10% but very important and indispensable particularly for newbies in the estate world.
It is advisable to select them strictly by REFFERAL based on their tangible verifiable and confirmed record of past performance, quality services and impeccable characters. Their agency fees are always negotiable.
PLEASE NOTE
That, what I stand to lose through the payment of agency fee to a tried, tested and trusted agent who will deliver to me A GENUINE and TOP QUALITY landed property with minimum stress and without incidence of CONSTRUCTION FAILURE; is nothing, compared to the great risk of a very huge loss to fake land sellers and quack builders.
SPEED AND ACCURACY
Before I pay for any property it is very important to carry out thorough RESEARCH following all necessary steps. A very good land with high scores in the above tasks list is definitely a HOT and FRESH CAKE in the Estate Market, always attractive to hungry, desperate and ready land GRABBERS.
Therefore, unnecessary delay in tidying up any estate deal transaction will always result in very PAINFUL loss of JUICY OPPORTUNITIES.
Landed properties in area where there are high economic growths potentials get sold by the minute.
PLEASE NOTE the following amazing truths:
- A very good property is rarely let go by owners.
- Except when under personal financial pressure.
- This personal financial pressure can also be met by other alternative means.
Finally, once payment has been made, please take immediate physical possession through erection of corner pieces, fencing with ideal plants or blocks.
CONCLUSION
Real estate investments carry very low risk with amazingly high returns and rewards.
To profit maximally from this evergreen ventures, you must take very good note of the following golden rules of engagements:
- Always remember you are not offending anyone, if you take all necessary steps before you drop your money on any property transaction. You are rather safeguarding your hard-earned money.
- Many are getting their fingers burnt, by failing to do what is required in purchasing a landed property.
- Do the DUE DILIGENCE; step by step. The property is not running away, rather, it is your money that will run away, if you fail to take necessary steps.
- Finally, it is not how long but how well!
I must always remember that, I am not the only one looking to invest in a particular area, the more I procrastinate, the higher the risk of missing out on a fantastic opportunity.
In our subsequent blogs, we will expose to you mind blowing opportunities known by only few leading smart investors in the Real Estate world particularly in nations where property values keep growing at a very high rate.
