Many Nigerians living in the diaspora have come to meet me for updates on what to know before buying a house in Lagos. My response is always the same: “What do you really want—an investment or a home?”

The reason for this is simple.

Many buyers just go on to spend their hard-earned foreign currencies on a property because they can afford to.

But buying a house in Lagos is not just about being able to buy. It is more about maintenance and property preservation. And also buying right!

This is why you must have clearly-set goals

Buying a House in Lagos: To Invest or to Live In?

Before you complete a purchase, you must first look at how long you will still be living abroad.

If you intend to stay for 20+ years, for instance, it’d be safer to build for investment than to live in. 

That way, your house is occupied by tenants and maintained by an agent of your choosing.

But if you are near the end of your desired stay, you can build a home that will fit your needs and your style. This way, you know that you’re not giving up your house for rent.

However, in both of these situations, there are problems that most Nigerians in the diaspora face when buying a house in Lagos.

And that’s the technical area of buying and keeping a house.

 

In this article, I will show you 5 major things you must know before you buy a house in Lagos. 

Note: These apply to you whether you are buying for investment or as a home:

 

Read: When to Buy Real Estate in Nigeria

 

5 Things You Must Know Before Buying a House in Lagos Nigeria 

1. Location

The location of your house will determine its value as an investment and its convenience as a home. 

If you are investing for profit, the truth about Lagos is that most properties will bring high returns… 

But to measure the property that will bring the most returns, you must consider these factors:

  • Development in the area: Check for the rate of development in the area. If it is slow but steady, you can invest if you are not looking to make money fast.

But if you want RoI within a short time (say, 1 to 2 years, you can invest in areas with faster development)

Development in this sense includes the number of houses being built in the area as well as the number of schools, malls, and other facilities being built in the area.

  • Road Accessibility: When an area is more accessible via road networks, people are ready to pay more for it.

Good road networks mean that workers go to their workplaces faster. 

It also means quicker access to necessities such as hospitals and schools 

  • Proximity to commercial and industrial hubs: The average employee wants their home close to their offices. The average production plant desires to have its factory close to its raw materials. And the average company wants their offices to be reachable by the target audience.

This is why Ikorodu prospered as a real estate hub between 2007 and 2012.

The area exploded with growth between 2017 and 2024 when the Ikorodu-Epe highway was fully completed.

The other area with the same possibility for that kind of growth within the Ikorodu-Mile 12- Epe axis is the Omu-Ketu area.

 

Read also: Secrets to Know Before Buying Land in Lagos 

 

On the other hand, if you are buying a house to live in, there are factors you must consider too:

  • Accessibility: How easily can you get to your home without very heavy traffic? 

There will always be traffic in Lagos but you can choose how much traffic you want to face daily. 

  • Flood-Proneness: One of the biggest problems of buying a house in Lagos is that many of them are flood-prone when it rains.

And your real estate agent may never tell you anything…

If you are in the diaspora, it may be hard for you to come down physically to check out the property.

Instead, you can send a family member or a friend you trust to ask the neighbours how the terrain responds to heavy rains.

  • Proximity to Necessities: If you plan to build a family in Lagos, take care enough to buy a house close to amenities. Places like markets, hospitals, places of worship, and schools should be within easy reach whether you have a car or not.

Easy reach, in this case, should be 30 minutes to 1 hour to aid convenience and to also reduce the cost of running your family daily.

 

2. Land Title and Documentation 

One of the biggest mistakes homebuyers make is failing to verify land titles.

If you are buying from the diaspora, there are major documents that you must verify either through a trusted agent or through a lawyer.

Here are some of them:

  • Deed of Assignment

This is the most important document you must seek to get when buying a house in Lagos.

And it is because it is the only document that shows the transfer of title from the property owner to you as the buyer.

You can have a C of O but if you do not have a Deed of Assignment, you have no proof that you truly own the property…

  •  Certificate of Occupancy (C of O)

This confirms that the Lagos State Government officially recognizes you as the owner of the land.

A C of O is usually issued because the governor of the state usually holds all land in trust for the citizens of the state.

So, whenever a land or a house is bought, it confers the state ownership to the individual who now owns the property.

If the property you bought already has a C of O, you do not need to get a new one. You only need to get the Governor’s Consent on your Deed of Assignment.

The deed already shows the owner of the property and the details of the transfer of the title in the property to you, so you don’t need to fulfil any other conditions.

Note: The C of O lasts for only 99 years. So, after 99 years, you or your next of kin have to renew it. 

  • Survey Plan

The Survey Plan contains the property’s coordinates (locations), its size, and boundaries.

It ensures that your property aligns with government-approved layouts. 

The survey is usually carried out by a hired surveyor. So, if you are not in the country, you tell your lawyer or real estate agent to hire one for you.

After your surveyor makes the necessary measurements, you can go on to submit it to the office of the Surveyor General of Lagos State.

  • Governor’s Consent – For secondary buyers.

Many people think that the Governor’s Consent automatically comes with a C of O.

But that is not how it works.

The Governor’s Consent is what the seller obtains from the Government when he wants to sell the property to you. 


So, a resale cannot be complete without the Governor’s Consent which is the state’s acknowledgement of the transaction.

  • Property Purchase Receipt

This is a proof of payment that you get from the owner or seller of the property.

It clearly shows that they have received the payment for the property while showing the amount that you paid for the property.

If you are buying a co-owned property, be sure to get the signatures of the owners of the property.

Where you get approval from only one owner, such a sale will not be valid in the eye of the law.

So, if you want to protect yourself from losing your property, ensure that you get the approval of ALL the owners of the house.

  • Building Approvals

Even though this is not part of land title and documentation, it’s one of the very first thing to check.

One of the biggest reasons for houses demolition in Lagos is lack of necessary building approvals and permits.

Some houses don’t comply with the requirements of The Lagos State Physical Planning Permit Authority (LASPPPA).

So, before you buy a house in Lagos, you must check if it doesn’t violate any building regulations. 

 

3. Hidden Costs Beyond the Purchase Price

The true cost of any house listed for sale goes beyond the quoted price. There are some certain hidden (but legal) charges that you may not see.

Some of the additional expenses you must prepare for include:

  • Legal and agency fees

This is the fee you pay to your lawyer and the agent overseeing the transaction for you in Lagos. It is usually between 5 to 10% of the property cost.

 

  • Survey and deed of assignment fees

These fees are necessary if you want to get your house documents. Under the Land Use Act, for instance, you can lose your property if you unnecessarily delay the payment for your property after it has been issued by the Governor.

 

  • Estate levies and service charges

If the house you are buying is in a gated community, expect to pay certain levies that show your commitment to the development of such a community.

These levies are used to cover certain uses like security and simple repairs.

These seemingly tiny costs can significantly affect your budget. So, ensure you research and consider them before you make a purchase.

 

Read also: Real Estate Investing for Beginners in Nigeria: the Complete Guide

 

4. Work With Reputable Real Estate Agents & Developers

Lagos has one of Africa’s biggest real estate markets. Sadly, however, it does not have the most reliable structure for its property distribution.

This is why you need to only work with agents and developers that you trust and can rely on.

Many people buy houses through agents and developers they find online.

These agents will snap fake houses and scan fake documents for them.

When they return to the country, expecting to see their house, they only see a different house occupied by a totally different person.

To avoid scams like this, do these instead:

  • Verify the track record of the real estate company.
  • Request references and visit previous projects that the company has handled.
  • Avoid deals that sound too good to be true.

Engaging a reputable real estate firm or developer ensures transparency and security.

 

5. Understand the Financing and Payment Structure

There are different ways you can buy a house in Lagos. These payment plans include:

  • Outright payment and 
  • Flexible instalment plans or off-plan (with 20 – 30% down payment).

Other means of payment include:

  • Developer payment plans that allow you to spread your payment over months or years.
  • Cooperative societies – Group financing for members of a cooperative.
  • Government housing schemes – Affordable options for eligible buyers. This option is not as popular because there are limited housing schemes available.

Unlike the USA and Europe which provide mortgage plans, Nigeria barely runs a stable mortgage system. The few companies that offer this plan only do so at a steep interest rate. 

You should consider all options and choose the best financing plan according to your budget.

 

Final Thoughts on Buying a House In Lagos as a Nigerian in Diaspora

Buying a house in Lagos from abroad or within Nigeria can be risky as much as it is profitable.

But you can secure a very profitable and convenient house if you can work on basic things such as 

  • Land documentation
  • Choosing the right location
  • Budgeting for hidden costs
  • Working with credible agents, and 
  • Selecting the best financing plan

Send us a mail today at info@possilaproperties.com if you would want to acquire your own house without worrying about future legal issues!