1.First, the buyer needs a clean and unencumbered title. This is ascertained by a title search or ownership enquiry to be conducted by your lawyer. This is VERY fundamental. Do not buy without it.
2.Consider Location. This cannot be overemphasized. Really, since we have identified TITLE as the first factor, the second factor is location. The third factor is location. The fourth factor is location. That is just to tell you how important location is , among your criteria. It often amazes me how some investors buy land in some clumsy locations and heap and dissipate valuable funds on gigantic structures on it and then expect rents or other returns comparable to what obtains in better locations.
3.When you buy, ensure that the price of the land or building should make sense, especially as it relates to the location.
4.What is the going rent for similar property in same location? This is one good way to appraise the investment sense in the purchase you are about to make. If you were to buy and place it for rent, can you recoup your investment in 10 years, 15 years or 20 years?
5. If there is a building on the land, then the current structural condition of the building should be considered. Check out the state or condition of the structure (leaking roof, soaked walls, sinking building, collapsing pavement stones, etc) . Ask for the Building design. Ask for the Building Approval, etc. What is the building to land ratio? In case, you are considering whether you can use the land more profitably after purchase, how much of the available land has been taken up by the building? Is there a parking space?
6.Is the building currently occupied by tenants and If occupied, what are the details of the tenancies (including tenor, rents, etc) are. How easily can the existing tenants be managed or evicted. If you intend to retain the tenants, then what is the profile of each of them? What business do they do or where do they work? Have they been paying their rents and other utility bills as at when due ?
7.What has been the compliance status on the property? Are there arrears of tenement rates/Land use charges or other taxes on the property? Are there arrears of utility bills (PHCN Bill, Water Rate, etc) on the property?
We have earlier discussed a long list of factors and issues a diligent purchaser ought to consider , as he sets out to purchase any land or building. Here we intend to dwell some more on the factor called LOCATION, because of how crucial it is. This is how we usually emphasize the factor: Location, location, location. How strong is the government or community development effort or plan for the area?
What do you really want? Is it a house with less space in the heart of the city, or a beautiful house far from the city .
Consider the current and potential road network or access, transport connectivity, proximity to good schools, hospitals, etc
Check for new shopping complexes, or other projects, being planned in the vicinity. Are there companies, industries coming up nearby? Still about location of the house, consider available parking space within the premises and outside, for you and your visitors. Some premises are so choked up that you have to park on the street, but then , if you do not mind that, the street should at least appear safe. You don’t need the trouble of trekking miles away to and from available car park.
Some people are able to control the noise in their household, but most times, the noise or other pollutants in the environment outside your household is a serious challenge. There may be a lot of noise on the streets, as it is with most locations, but t least you need to make sure you are not picking a house with a nightclub or any such noisy activity, as your immediate neighbor.
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