Buying Land: Avoid Losing Money

[Stockbear]

Hopefully this thread will help us avoid losing money!

Let us all contribute our knowledge, information and experiences to help each other out.

The Punch
How to avoid losing money in land transactions
By Akinpelu Dada
Published: Wednesday, 18 Apr 2007

Mr. Adekola Babatunde had bought a parcel of land at Magboro, a new settlement behind the Prayer City of the Mountain of Fire and Miracles Ministry in Ogun State, off the Lagos -Ibadan Expressway. A few months later, he returned to discover that a church had taken possession of the land.

It was later discovered that the land was sold to two different parties who were issued separate receipts.

The above scenario is an example of the common problems associated with land acquisition in urban centres of the country. Many have lost their entire livelihood, while others have lost their lives and relations on account of the fraudulent practices of land vendors, agents, professionals and quacks who feed fat on the system.

http://www.punchontheweb.com/Articl....00704182134054

[Stockbear]

More info on buying land.

The Punch
Friday, 23 Feb 2007
Safeguarding investments in landed property
Akinpelu Dada

Mr. Jamiu Akinbobola had last year, bought a parcel of land at Magboro, a new settlement behind the “Prayer City” camp grounds of the Mountain of Fire and Miracles Church, along the Lagos -Ibadan Expressway in Ogun State. A few months later, he returned to the land to discover the plot fenced with a signpost proclaiming a church as its owner.

After an investigation, Akinbobola discovered that the land was sold to two different parties –– himself and the church –– and were issued separate receipts.

One investor recently lost over N7m in a transaction that initially appeared harmless. He had “bought” an acre of land at Isheri North on the border between Lagos and Ogun states from a supposed land-owning family, or Omo Oniles.

Trouble later ensued when another party came forward to claim the land, and on investigating the survey plan, it was confirmed that the land belonged to the Lagos State Development and Property Corporation as the entire area was under government acquisition. The structures erected on the land by the investor were eventually demolished.

Currently, some investors who have embraced the Lagos State Government’s call to develop the Lekki pennisular into a tourism hub, are having it rough in taking possession of their government-allotted land because some people of Maiyegun Village are laying claim to the area, including the portion acquired by the state government.

These examples typify some of the problems associated with land acquisition in the urban centres of the country. Many have lost their entire lifetime savings, while others have lost their lives because of the fraudulent practices of land vendors, agents, professionals and quacks that feed fat on the corrupt system.

[c kenneths]

Property investments are one of the safest ways to make money in the world.

People tend to prefare properties because of its relative free maintenance and yet its value seems to be on the increase always (especially empty land)

There is this seeming certainty of steady income to landlords who have tenants in good locations. That is assured cash flow monthly.

There are landlords that started small in this country and now own houses that are more than twenty. They used strategies like, buy a piece of land and constuct 20-24 rooms in an open 'face me I face' you building.

They then collect two years rent avdance of around 2000-2500 per month( depending on where the new building is located)= 2500x24 months=60000 per room x 24 rooms = 1,440,000.00.

They then go back and start hunting for another good land for say 1.2m.

After two years, they start collecting another rent on the buildings, but wait this is not the real gist.

The real action start happening when he is able to own more than one building, and the power of compounding comes in, that is he will be collecting rents on those houses to build more houses, which in turn generates more money to build even more houses. They may now venture into flats and bugalows or even duplexes.

There are people in this land, that smile to the banks every month with mega amounts of money. As much as 800 thousand to 1 million naira monthly, even here, even now.

But just like everything that have good sides must have bad sides. Losing money in property is very real.

There are people that just prey on other people's naivety to swindle them and sell already sold properties to them, but from the research I carried out, the buyers themselves have some blame to share. They fail to carry out extensive investigations as to the true owner of a land they want to acquire.

Land investors should first visit the relevant land registries to determine who's name is mentioned as the last owner if it's a resale property. Check also the history of ownership and then put an ear to the ground and find out if the land is under dispute

Watch out for lands that the real owner is dead, it could be a trap by one of the children or wives to forcefully sell without the consent of the whole family. As soon as you buy, the illegal seller who may have stolen the papars will varnish leaving you at the centre of some angry family, God help you !

For me I deal with my land agent because he has local knowledge, he seems to know all the lands and their owners, the lands under litigation, recently sold properties, the lands that were used to source loans from the bank, etc.

I could go on and on but for time, see all you later.