Approach To Buying Of Properties, Lands and Houses In Benin City

CHIDI
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CONTENT

1.    1.   Introduction

2.    2.  Houses for sale in Benin City: A guide to purchase

3.    3.  Lands for sale in Benin City: Factors to consider

4.    4.  7 Practical ways to find out if the land is genuine

5.    5.  Frequently asked questions about lands in Benin City

6.    6.  Where can you get farmlands for sale in Benin City?

7.    7.  Is your land agent telling you the truth?

8.    8.   Learn About Real Estate investment

9.    9.   Books on real estate investment

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Duplex for sale in Uselu Benin Lagos road
Buying of lands or houses in Edo State is becoming an art. Learn consciously and spend wisely. Real estate is a huge and constantly changing market that requires a professional estate agent, realtor or broker to walk you through the entire process. In other words, real estate sector is dynamic. Interestingly, houses and lands are liquid assets.

Hey! Sorry, I used a high sounding word - liquid asset.  It means it can easily be converted to cash. And with high returns. I think you are getting to understand why people invest in properties. Some prefer to buy a lot of lands in good and different locations in Benin City.


Others search for cheap houses to buy in Benin, fix and flip. Oh yes, you heard me right. Let me make it clearer for you my friend. Some real estate investor buy a house and carry out some maintenance on the property. This will increase the value of the property significantly. A little change can mean a big profit. Real estate investing could be fun.

This was exactly what an estate agent did. Early on, he discovered that buying and selling of properties is lucrative. I didn’t know he was really into it, trust me.  I just told him about a property for sale in airport road axis, precisely Uholor. Incase you are wondering, you can also access Uholor through Ekenwan road. So it’s obvious the property is in a good location with different access roads.

The property was a house -  a 2bedroom bungalow on a land space of 900sqms( in Benin City we refer to this as 100ft by 100ft, that is a plot). The land was not fenced and the building had no artwork design on it. The house was cheap. How do you know a cheap property? You may be wondering. Relax, I will tell you. A plot of land in that environment cost 3M to 4M. And the land where this particular property was located was 3.5M.

Are you getting it? Do you know the cost of the house? 4million! You can see how cheap the house was. You can see the clever way to determine the value of a property. In other words, this is one way to know whether a house is cheap or not.

So the agent bought the house himself. Initially, I didn’t know he was planning to buy the property himself until it was time for payment. Even at this stage, I didn’t know what he intended doing with the building. I collected my agency commission and left. After 3 weeks, I called the estate agent that I needed a building for sale in Uholor. The agent told me he wanted to sell his property. Do you know how much he told me? 7M!

What! Wait, did I hear him well? Of course. And he really did sell the house for that amount. But how did the house manage to appreciate within such a short space of time? I will tell you a little secret. Investors who buy and sell houses have one thing in common- they know the changes to make in the house that will significantly affect the price. They buy, fix, and flip the house.

Aha! That was exactly what the estate agent did. He beautified the house with artworks on the pillars, windows, etc. Next, he did a 3-coach fence on the property. This was easy because two other sides of the land had a fence already(done by neighbours). This entire process added value to the house. In fact, it appeared like a modern house. From the foregoing, buying and selling of properties or houses is as easy as a pie.

Did you ever imagine that buying and selling of houses was not profitable? Well, it would always be profitable, properties appreciate over time. And you must hook up with the right estate agent that will regularly update you about the houses for sale in Benin City. Interesting, there will always be those who want to sell their houses, and of course those interested in buying up such houses. Bear in mind that the prices of houses or properties in Benin is not fixed, and can hardly be regulated.

As a newbie in the real estate sector, you may wonder how to get the best deal on property purchase be it a house or a land. At this point making a good choice of house or land to buy is critical. However, it’s necessary to know the factors that affect the value of properties in Benin City.

HOUSES FOR SALE IN BENIN CITY: A GUIDE TO PURCHASE

So you are excited about owning your first home. And you begin your search for an ideal house. Wait! Don’t rush. Have you considered a few factors that will guide you to the right choice? My friend do not let excitement influence your judgment. Stand back, put your emotions in check, put on your thinking cap, and examine the house thoroughly. Go with the mindset of one trying to criticize the house before finding something unique and exceptionally good about the house.

Imagine that an estate agent just showed you a particular house for sale.

What’s your first impression about the house – good or bad? As an experienced real estate agent in Benin, I often watch out for this sign when I take clients out to inspect properties. I just watch their reaction very closely. This signal is very important. Now ask yourself sincerely ‘how did you feel about the house?’

Interestingly, your opinion of the building was influenced by the following:

1.       Proximity to the major road: when a house is close to the road this triggers initial excitement. No one likes trekking long distances before getting to their house especially when there is no vehicle. And when coming back home late at night.

2.       Other houses in the neighbourhood: would you buy a house in a lonely environment? Certainly not! Everyone is conscious of security. When there are houses everywhere this gives an instant feeling of security even before confirmation. But if there are bushes everywhere, my brother, you are already scared, and keep imagining the worse happening to you already.

3.       The general landscape or topography: Warning, do not buy a house in an area  that will be affected by flood now or in the future. Erosion is not a friend but a foe, it can chase you out of your beloved house. But how do you know areas that will be affected by flood or erosion? 

4.       Was the house used as a collateral for loan and owner yet to pay back his debt? My dear, many things happen. Some individuals have attempted to sell their property in this situation even when the original document is with their creditor. They want you to buy the house without explaining the terms and conditions. Be careful, don’t fall victim!

5.       The cost of maintenance: Don’t buy any house without putting this into consideration. Some buildings require little maintenance cost while others you have to do massive maintenance. Whatever you assessment is, this should affect your bargain with the seller of the house.

6.       Consider the life span of the building: Some houses have a significantly reduced life span because of prolonged exposure to rain and sun especially uncompleted buildings. The blocks may be weak, shine your eyes.

7.       Does the house have resale value? If yes, then it’s worth considering. Otherwise look elsewhere.

8.       Is the property genuine? Hmm! This question should run back and forth in your mind as you assess the building or house. But how do you know a genuine property?  Find out here. Don’t fall victim to fake property, be wise! (Read up: 5 Ways to Confirm the Genuineness of a Property)

9.       Does the property have a good title? A lot is involved in securing a property. Don’t buy a house without a good title. Otherwise, it could be subject to dispute in future. Other persons could lay claim to the same property. If you see a house marked for sale or an estate agent took you to a house for sale, be quick to ask for the title. So that you can begin investigation immediately .

10.   Is the house under litigation? No seller will tell you his house is under dispute. But how do you find out since no one is telling you? Well, this is where experience comes in. Also, a competent estate agent or lawyer could help out in this regard. However, you too can watch out for signs that the house has unresolved issues. Have you ever seen a house with the inscription “this house is not for sale”? This is conspicuous. What if before you got to the house the seller had already obscured the writing with another paint? A discerning buyer could easily spot this trick on the wall.

11.   Is the house on government gazette? I will not forget in a hurry the nasty experience I had in November, 2022. There was a house, 3flats, in Uteh, Upper Mission Extension in Benin City, that I was at the verge of selling. Yes, the buyer fell in love with the house because of the good finishing. We had concluded on the price, collected the title documents, and it was time for the next stage: proper verification of the title. The verification was done in Edo State Geographic Information Service(EDOGIS). Can you imagine the outcome? Busted! The house was on government property. That was how we abandoned the beautiful house.

(Read Up: At a Glance: How to know a Property Under Dispute)

 LANDS FOR SALE IN BENIN CITY: FACTORS TO CONSIDER

Before you head out of the house to search for a land to buy, you need to know the location, distance and be conscious of your budget. Although budget and distance have an indirect relationship, you can still make a wise decision. To understand your budget and distance when planning to buy a land, consider it this way: a land that is close to the road tend to be more expensive than the one far inside the street. In other words, the closer the land is to the road, the higher the budget and vice versa.

Having understood this fact, lets plunge right in

1.       A cheap land does not necessarily mean is the best deal: Sometime ago, I was searching for a land to buy for a close friend in Benin Auchi road, precisely Iguovbiobo Community. Since I didn’t know much about available lands in that area I decided to go to the town hall. They took me out for inspection. I quickly observed that the landscape is not flat, there are hilltops and valleys.

 They drove me through winding roads with many twists and turns, and then we got to the land. However, I was already discouraged on the way. “Anyone buying lands here will have some challenges accessing his house in future”, I thought to myself. The land was cheap, yes I agree, but no direct access to it. 

Take this to heart my friend, if there is no well defined network of roads in the location you intend to buy the land, then look elsewhere. Also, if the lands in the community are being sold before defining the streets and roads then back off. Otherwise, you will end up positioning your house in the wrong direction.

 I have seen houses that back the street instead of facing it. In case you think the location of the land is not necessary just because it appeared cheap, hear this: the value of the house built there will be significantly affected in the future because of the poor network of roads. People will price the house cheap just because of the distance.

You are likely to hear words like : “it’s too far inside”, “ the road is bad”. This same attitude applies to the land if you decided to sell without developing it.

In the purchase of lands, the old saying could apply ‘penny wise, pound foolish’. In a nutshell, I would prefer you buy a land with good access roads, though more expensive. So jettison the idea of searching for a cheap land in Benin City.

 

Make sure the land won’t be affected by erosion or flood in future. Is it really possible to determine this especially during dry season? To answer this question, you may want to read up an article on this. In fact, proper observation should be carried out because erosion could pose a real threat to human existence. I have seen several cases where landlords abandoned their houses because of erosion menace. So don’t just buy land anywhere be observant. It may be necessary to visit the area at different times to understand the topography better.

 In this regard, don’t make the mistake of buying a land in a place that seems like a valley. If you have no idea about the flow of erosion during the raining seasons you can ask the neighbours casually.

Is the land genuine? In other words, where can you get genuine lands to buy in Benin City? This is a very important question. No one wants to buy a fake land. Experience is needed to get a satisfactory answer for yourself. However, you may want to consider the following points:

 

7 PRACTICAL WAYS TO FIND OUT IF THE LAND IS GENUINE

1.       Ask the supposed seller to clear the land. This way any other interest on the land may pop up. If the real owner is elsewhere information will get to him quickly about the development in his land. What if the supposed seller complains about lack of funds to clear the land? Well you might consider doing this yourself. It will not take so much compared to what you stand to lose later when it turns out the land is not genuine.

2.       Scrutinize the title. Does the land have valid documents? For me as an estate agent, due diligence report starts with the title. The title gives you firsthand information about the owner of the land (property). Although some persons could alter the names on the document just to mislead the buyer, there are clever ways to find out the genuine owner of the land using the document provided. Go back to the land at other times to interact with neighbours. Neighbours could relate the history of the land to you in surprising details even mentioning the name of the perceived owner.

3.       Confirm title documents at Edo Geographic Information Service(EDOGIS).

4.       Make sure you are not buying government gazette lands. In other words, make sure you are not buying in areas marked as government lands or property. The only way to find out is to conduct a search at EDOGIS.

5.       Find out from the community head Odionwere, Enogie or Ohen about the real owner of the land.

6.       Request to see the relatives of the supposed seller of the land. You could get a hint about the actual owner of the land. I have seen cases where a sibling wants to sell his brothers property. A son could sell his father’s land without notice. Also a wayward uncle may want to sell a land belonging to his cousin and so on and so forth.

7.       Do the unusual. Tell the seller you want to start work on the land before payment. This involves clearing the land, removing stumps and putting sand on the land. I tell you my brother before you complete this process, the truth about the land will emerge.

The bottom line

You have to go through the recommendations above to confirm the original owner of the land before purchase. Remember, whatever effort you put in, is well worth it.

It’s far better to spend some time in carrying out due diligence report and sleep peacefully thereafter, than to pay hurriedly for the land and have many sleepless nights.

FREQUENTLY ASKED QUESTIONS ABOUT LANDS IN BENIN CITY

How much does land cost in Benin City?

The price of lands in Benin City is not fixed. It depends on the area or location. Another determinant of the cost of land is if the land is on a major tarred road or inside the street. Why do you need the land, is it for commercial or residential purpose? This is a factor to consider too.

Lands in the outskirts of Benin cost differently. Bear in mind that lands in Government Residential Areas(GRA) in Benin tend to cost higher. So the average cost of a plot (900sqm) for residential in this area is N20million. While the average cost of land in the commercial area is N45million especially lands along Boundary road, Ihama, Airport road, etc.

In the same vein, lands along Sapele road, which are commercial cost almost the same. While lands in residential areas of Sapele road cost between N5million to N10million depending on the lands proximity to the major express road. Such communities as Obe, Ekae, Oghoghobi, Evbukhu, Okha, Obayantor, Uhie, Ogheghe, Obagie, Obaretin.

Lands after Sapele road bypass are a bit cheaper (excluding lands in Ogheghe, Obagie Nevbosa, etc). You can get a plot for less than N5million in Obaretin, Uhie, Obayantor, etc. Don’t forget the rule: the closer the plot is to the major road, the more expensive and vice versa.

In Ekenwan road, starting with Ugbighoko, you can get lands for N1.5million to N2million for a plot(100ft by 100ft). It should be stated that such cheap lands are far inside with average trekking distance of 20mins. But lands along Ekenwan road express, which are commercial, tend to be costly too. Average cost of such lands is N30million.

In Benin Auchi road, starting with Eyaen, and Idokpa communities a plot goes for N5million to N7million. Are you wondering why lands seem to be costly in that axis? It’s the constant light they enjoy. This singular factor increased the value of lands there. Even houses for rent in those areas are equally high. As with other areas in Benin City, lands along the express, say 900sqm(100ft by 100ft) cost between N30million to N40million. No hard and fast rule: the closer the land is to Ramart Park the more expensive it is and vice versa.

Lands in Ogheghe(after the bypass in Benin Auchi road), Ekose, Idunmwungha, Evbuekoi, Ogueka, Iguovbiobo, Urokosa, Ekhua, etc all after the bypass, a plot goes for N1.5million to N2.5million depending on the distance inside.

Where can you get cheap lands in Benin City? Someone asked. You can get cheap lands for sale in Evbuotubu, Siluko Road axis, Egor, Egbaen, Ogheghe, etc.

In conclusion, lands tend to be cheaper in communities where the roads are bad, poor electricity supply and the general perception of the people. For instance, lands for sale in Upper Sokponba attract lower interest because of reputation and perception of the people.

WHERE CAN WE GET FARMLANDS FOR SALE IN BENIN CITY?

Farmlands are usually gotten in the outskirt of the city. Since its purely for farming, houses are far away from such areas and the lands tend to be cheap. You can get farmlands to buy in Benin Auchi road towards Ehor. You can also get cheap farmlands in Benin Lagos road, Benin Agbor road, etc. For a current quote of the price of farmlands in these areas call or whatsapp 07031384722.

FARM LAND FOR SALE

10 acres of land (40 plots) not far from Oluku and before Ovia River, Benin Lagos road. The legal documents on the property are Community Approval and Survey. The price is 7 million. Rush now to buy this large farm land.

CAN I GET GENUINE LANDS FOR SALE IN AMAGBA?

Yes. In recent times, Amagba had a rapid growth. It became the next destination of investors, and its perceived as an extension of GRA. Lands in Amagba are not cheap. The average cost of lands there is 7m. As with other lands in Benin City, make sure you carry out due diligence before paying for any land. As a general rule, no property is genuine unless you have proved it otherwise. I will call this ‘the buyers mindset’. Buy lands in Amagba and rub shoulders with crème de la crème of the society.

 SUMMARY OF KEYPOINTS

The current price of lands in Benin City: It depends on the area you need land in Benin city, lands in airport road, Sapele road, GRA, etc tend to be more expensive than others. For commercial lands, the average price is N45million per plot. While the average cost of residential lands in GRA is N20million.

Actually, land agents can assist in your search for a genuine land in Benin City. They will take you through different options of lands available in Benin as you closely match the price with your budget. As inferred above, your budget will largely determine where you can buy lands in Benin City. You can’t desire to buy lands in GRA, for instance, if your budget is low. Otherwise you will be wasting your precious time searching for lands that are not available. So, allow land agents to guide you properly and do not waste their time too. As land agents, Chidi Properties, will assist you all the way.

IS YOUR LAND AGENT TELLING YOU THE TRUTH?

A land agent doubles as a real estate agent that helps you to search for properties and negotiate deals and gets commission as a reward. Some estate agents could really get distracted by the commission and fail to carry out proper due diligence on the land or house. This brings the question ‘whose duty is it to investigate the genuineness of properties – the estate agent or the buyer?’

A similar question is who is first contacted when the buyer discovers the property is fake? The agent. Oh yes. In view of the enormity of the situation and the level of problem,( compared to the agent’s commission), that the estate agent eventually gets tangled in, the bigger responsibility to investigate the land for sale rest on the shoulders of the land agent. Truly am speaking from the perspective of a real estate broker in Benin City. The realtor (estate agent) is dragged here and there and even arrested by the police for taking a buyer to a fake property.

On the other hand, the estate agent has more knowledge of properties than the buyer. The estate agent may also be aware of some tricks deployed by dubious sellers of properties. Meanwhile, the buyer may not have so much experience in this regard. However this does not exonerate the buyer from failing to carry out proper search of the land to ascertain its genuineness.

The buyer should contact his lawyer to carry out the necessary findings about the property before effecting payment.

In view of the foregoing, the buyer and the estate agent should collaborate in confirming whether the land is genuine or not. No one should leave this responsibility for the other.

LANDS IN OKHUOROMI BENIN CITY

Many people hardly know Okhuorom community. Actually the community started becoming popular when most of the roads in airport road axis were tarred. Development rushed to the place. Investors started buying lands along the major road and inside the streets.

In fact, Okhuoromi it’s a nice place to buy land, build and stay. The value of lands increase everyday. Please note that the community is Off Airport road axis through Irhirhi. The topography is generally flat. Why don’t you consider buying a land in Okhuoromi today? Reach out to us.

WHY YOU SHOULD BUY LANDS IN UMEGBE

Umegbe is a community in Airport road extension. It’s Ward 2, Oredo Local Government Area, the headquarter of all Iyekogba communities. Investors should rush to buy lands in Umegbe while the lands appear seemingly cheap in view of the development that will soon greet the area. As an estate agent, I peer into the future based on keen observation and analogy of trends in real estate development in Edo State.

A real estate investor with a developer mindset can easily read the handwriting on the wall. This is the time to buy large plots of lands in Umegbe. Buy lands to build houses or to resell in future.

LEARN REAL ESTATE INVESTMENT

Real estate is a property made up of land and the buildings on it. This definition suites our purpose regarding investment on houses and lands.

One of the most attractive aspects of real estate is the potential for significant financial gain through appreciation in property value over time. Additionally, rental income from tenants can provide a regular source of passive income for property owners.

However, investing in real estate can also come with risks. The real estate market is affected by a number of factors such as interest rates, economic conditions, and government policies. When the economy is strong and jobs are plentiful, the demand for housing typically increases and so do property values. Conversely, when the economy is weak and unemployment is high, the demand for housing decreases and so do property values. Yeah, it’s a simple logic. If people don’t have the money they won’t think of buying a house or land.

To invest in real estate, one has a few options. One can purchase a property with the intent to hold onto it and rent it out to tenants. This is known as being a landlord, and it can be a great way to build wealth over time as the property appreciates in value and rental income is collected.

Another option is buying property with the intent to fix it up and resell it for a profit, this is known as flipping, but it can come with a higher level of risk. You can definitely reduce the risk if you master the art of real estate investing.

A third option is to invest in real estate through Real Estate Investment Trusts (REITs). REITs are companies that own and operate income-producing real estate, such as apartments, shopping centers, and office buildings. Investors can buy shares in REITs, which provide a way to invest in real estate without the responsibilities and costs of being a landlord. 

A good example of such real estate company is Sky Shelter in Lagos. In Benin City, some real estate companies are considering this option. Tweak real estate company in Benin City has another version. The estate company wants investors to key into purchase of bulldozers and other heavy duty trucks with monthly return on investments.

Ultimately, the key to successful real estate investing is to do your research, understand the market and the properties you're interested in, and have a well thought out plan for how you will generate returns on your investment. It's important to be patient and disciplined, and not to get caught up in market speculation or emotional buying.

Also, due to the high cost of real estate, many people opt for a mortgage. This can make it more affordable to purchase a property, but it also means that the buyer is taking on debt. It is important to have a good credit score and enough income to qualify for a mortgage, or else investors need to make a large down payment.

Real estate can be a great investment that offers the potential for long-term appreciation and rental income. It's important to understand the market, have a plan, and take a disciplined and patient approach to building wealth through real estate. It's also important to be mindful of the cost and to be prepared to take on a mortgage if necessary.

Conclusively, you can begin your journey today. Buy properties in Benin City, watch the value increase. You will never regret ever doing so. Real estate is your best choice. Buy a house or buy a land.

 BOOKS ON REAL ESTATE INVESTMENT

1.    "The Book on Rental Property Investing" by Brandon Turner: This book provides a comprehensive guide to building wealth through rental properties, and covers a wide range of topics including finding and financing properties, managing tenants, and analyzing deals.


2.    "The Millionaire Real Estate Investor" by Gary Keller: This book is a collection of interviews with some of the most successful real estate investors in the world, and covers a wide range of strategies for building wealth through real estate investing.


3.    "Rich Dad Poor Dad" by Robert Kiyosaki: This book is a personal finance classic, and emphasizes the importance of financial education and the power of real estate investing as a way to build wealth and achieve financial freedom.


4.    "The BiggerPockets Real Estate Investing Books" : by Joshua Dorkin and Brandon Turner, This book is collection of three books: "The Ultimate Beginner’s Guide to Real Estate Investing," "The Ultimate Beginner's Guide to Real Estate Wholesaling," and "The Ultimate Beginner's Guide to Real Estate Marketing," These books are comprehensive guide for beginner and intermediate level investors, this book covers a wide range of topics including finding deals, financing and marketing strategies, and building a team.


5.    "The Intelligent Investor" by Benjamin Graham: This book is considered to be one of the most important investment books of all time and is not specific to real estate but it provide fundamental concepts of investing and value investing which can be applied to real estate investing as well.

It's worth noting that there is no one "right" way to invest in real estate, and the best approach will depend on your own goals, risk tolerance, and experience level. So it is important to read multiple books on real estate investing, and take the advice that aligns with your specific situation.

 

THE INTELLIGENT INVESTOR- STRATEGIES FOR REAL ESTATE INVESTMENT

"The Intelligent Investor" by Benjamin Graham is a classic investment book first published in 1949. It is considered to be one of the most important investment books of all time and is widely recognized as a comprehensive guide to value investing. The book is divided into two parts: the first part provides a general introduction to investing and the second part is a detailed guide to the principles and techniques of value investing.

One of the main themes of the book is the distinction between the "intelligent" and "speculative" investor. According to Graham, the intelligent investor is one who looks for undervalued securities and invests for the long term, while the speculative investor is one who focuses on short-term gains and is more likely to be swayed by market fluctuations. The book stresses the importance of conducting a thorough analysis of a company's financial condition and management before investing in its stock.

The book also talks about concepts such as margin of safety, which is the difference between the intrinsic value of a stock and its market price and using this concept to minimize the risks of investing. It also covers the concept of diversification and the importance of avoiding the behavior of the "herd" mentality of the market.

Another interesting concept found in the book is creation of a fictional character representing the stock market. He is portrayed as being extremely volatile and irrational and the book advises the readers not to take his moods too seriously and instead to stay focused on the fundamentals of the business.

The book also covers bonds, which are debt securities and how they differ from stocks, as well as various types of bonds and how they can be used as part of an overall investment strategy.

Overall, "The Intelligent Investor" is a comprehensive guide to value investing that is still widely read and referenced today. Its principles and concepts can be applied not only to stocks but also to other forms of investments including Real estate.

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