The Problem With Waiting To Buy Land/Property – Clients Experiences
- Posted by Karo Itoje in Blog Updates, Land Tips and Advice
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The reason I am writing this article today is because one of my clients had an “I told you so” moment recently and I had to write this article to reiterate what I have always said about waiting to buy real estate.
Any real estate consultant will tell you do not wait to buy a land instead buy and then wait.
That might seem like a catch phrase to get you to buy right now but it’s more than that. It’s a recommendation when ignored can have a big impact on your finance or on you getting the land or house in the estate you want.
There are two reasons any consultant will tell you to buy right away instead of waiting. These reasons are:
1. Price increase. We’ve seen how a land went from N3million/plot to N7million within a few months. We’ve also seen how a land went from N10million to N12million within a few months. Those who waited to buy from these estates will now have to pay these current price to buy. That’s a big difference in price and a lot of extra money you could have used for something else.
2. Your desired estate sells out. This has happened with few of our partner Landwey’s properties. Their estates are located in strategic places and they have a lot of us experienced realtors consulting for and selling their properties. So their estate sells out really quickly. And same is the case for a few other companies with land in Ibeju Lekki. It can really be a challenge if and when the estate you really want sells out.
My Clients who Learned the Hard Way
One of my clients wanted to add another land to his portfolio and was interested in Arium estate in Abijo GRA, just after Sangotedo Lekki. Then Arium was selling for N7million/plot. He completed his application form and when it was time to make payment he changed his mind. Well, this same client visited Nigeria recently and called me up to take him to the estate. On getting there him and his wife fell in love with the estate and wanted to get 2 plots. But the thing is Arium was now N8million a plot on out right payment. As expected he said “but you told me N7million” I said yes I did, but that was months ago. Now it’s N8million. They really loved it so they processed an application.
A man called me up from US not long ago he wanted to buy a land from Westwood Park Estate phase 2. But it was sold out. He was desperate. He started to tell me how he has always wanted to buy from the estate but kept procrastinating even after his friend went ahead to buy 2 plots. Fortunately for him his friend was willing to sell him one plot from his own.
Finally the most recent one is the prospect that contacted me from US and wanted a land in Sangotedo. I recommended a few estates including Arium estate. He was interested but said he will like to see it first. I said I have a video for it you can see it in the video and make a decision. But that wasn’t good enough for him. Last week he called me up, he was in Nigeria with his friends for the Easter celebration. He wanted to see some estates. By this time Arium had just sold out. I took him to an estate that shared boundary with Arium, East Amber Estate and couldn’t resist the temptation to show him Arium as well as we had previously talked about it. And guess what? He screamed! Yes, I want from this estate! I said I know you would. That is why I had to show you what you missed.
Arium is well located and it had this beautiful design gate design that was already up. And it was affordable too at that price, especially since our new estate that shares a boundary with Arium is selling for N10.5million on out right.
But even though he wanted to buy and I wanted to sell, there was nothing that could be done because the land was sold out. I called the office asking for consideration. They wanted two plots but the office said there’s no more land there to sell. My client felt bad. I felt bad for him too especially because we didn’t see another land around that area that was as perfect as Arium in terms of price. I say price because he loved our estate Walton even more but Walton is selling for N15million which was above what he was willing to spend.
What if I Don’t Have the Money to Buy Now
Money is really the deciding factor on whatever we want to buy. If you want to buy and you don’t have the money there’s nothing you can do.
Having said that there is no one that starts researching on buying a property that doesn’t have a budget already. Now if after your research you realize your budget won’t cover the purchase, do not give up for now and say I will get back to you. As I have explained a lot can happen when you wait. So instead of waiting consider installment package. There are 3 advantages to doing this:
1. Once u make that initial deposit, it locks down the price at the current price for you. So even if the price increases it doesn’t affect you. It’s true that installment prices are usually higher than outright purchase price as the company chargers you interest on the money. But the next two advantages more than makes up for this.
2. You pay towards your land with no pressure. Choose an installment plan you are comfortable with, 3 months, 6 months or 12 months.
3. Immediately you make your initial deposit you start benefiting from land appreciation. If the land was selling for N7million and it’s now N8million it’s extra N1million returns you’ve made on your land even though you are not done making payment.
Note: I usually don’t recommend installment plan if you can afford the outright payment. Reason being that other things you didn’t plan for can creep up and take the money you have planned to pay for the land. I have seen it happen to some clients and then you can no longer meet up with your payment. And if that happens the company has fines you may have to pay for defaulting. So only go for installments if you really can’t afford in full the payment for the land you want. It’s better than waiting to save up the money.
But I Can’t Buy a Land I Haven’t Seen
It makes sense to want to insist on seeing the land you want to buy before buying. But you really don’t have to wait to physically see a land before buying.
This website landforsaleinlagos.com has become one of the authority sites on land matters so most of the clients I work with are based abroad. And I am happy to tell you that at least 70% of them don’t wait to see the land. Instead they ask for the video and pictures of the land and then ask for my honest recommendation, which I am always glad to give. I consult with prospects for free. Sometimes some are with me on WhatsApp call for over an hour and we talk almost as friends. And then they proceed. And none, and I mean none of these people have ever regretted making that decision after visiting Nigeria to see the land. So all you really need is a trusted real estate consultant to work with and trusted real estate company which I know a lot of, and you are good to go.
If you have been procrastinating about processing an application for a land/house with me or if you have been waiting to save up I hope this article makes a difference with you and you will finally take the needed action. Remember too that keeping your money in the bank as you save or procrastinate doesn’t help you. However if you invest it instead you could get returns on your money within a few months.
If you have questions or want to process an application for any of our estates don’t hesitate to chat me up on WhatsApp or call. I’ll attend to you at anytime. The number again is 09071070691.
Our Best Selling Estate Right Now Within Sangotedo
1. Walton Gate Estate (less than 5 minutes drive from Lagos Business School and just 30 seconds drive from the Lekki Even Expressway)
Status: Dry but has some swampy area which will be sand-filled by the company.
Title: Gazette
Size: 600sqm
Price: N15million/plot
For more info see the page on Walton Gate Estate.
2. Berry Courts Estate (behind the biggest Shoprite located in Sangotedo)
Status: Dry Land
Title: C of O
Size: 600sqm (60×100 ft)
Price: N15million/plot
For more info see the page on Berry Courts Estate.
3. East Amber Estate (shares a boundary with Arium estate and already being fenced)
Title: Governor’s Consent
Size: 600sqm
Price: N10.5million
For more info see the page on East Amber Estate.
Our Best Selling Estates in Ibeju Lekki
1. Amen Estate Phase 2 just opposite phase 1 on Eleko Beach Road
Title: C of O
Size: 600sqm
Price: N12million/plot
For more info see the page on Amen Estate Phase 2.
2. Lekki Royal Garden (5 minutes drive after Dangote refinery)
Title: C of O
Size: 600sqm
Price: N6million/plot
3. Greenfield Courts Estate
Title: Approved Excision
Size: 600sqm
Price: N2million/plot.
For more info see the page on Greenfield Courts Estate.
4. Green Acre Estate (5 minutes drive after Lacampagne Tropical Resort)
Title: Excision in process
Size: 600sqm
Price: N800k/plot
For questions, book site inspection and or process application for any of the estates listed above Call/WhatsApp Karo Itoje on 09071070691.
