5 Land Investment Myths and Facts
In the real estate circle, there are beliefs, ideas and submissions that have been commonly maintained for such a long time that they are true but in reality, they are nothing but land investment myths.
In the real estate industry, there are a lot of popular myths (ideas or beliefs) that come with land investments that have been commonly maintained for a long time. What usually brings them up is confusion, anxiety, and tension. The fact that such beliefs and ideas are popular doesn’t make them true. So, to help you ease the tension, we’ve debunked a couple of popular land investment myths in Nigeria. Let’s go through them.
1. Only the Rich Can Buy Land
“You need a lot of money to buy land.” This is one of the most popular lines of thought when people want to buy land in Nigeria. What a lot of people believe is that land is expensive, and for you to buy one, you have to be rich. Over the years, this myth has been the belief of millions of Nigerians.
Although land acquisition has been a strong part of the investment portfolio of billionaires, this does not make it an exclusive right only the rich can enjoy.
Thanks to the digital age that has made this myth easier to spot. Now, a reputable property agency can have several affordable lands listed on their website.
Fact: You don’t need to be extremely wealthy before you can invest in land.
2. Land is land. Why pay higher for some?
When planning to buy a land, you need to understand that not all land is the same.
Land value in terms of price differs based on various factors like location of the land, size of the land, proximity to access roads and among others.
Now, we all know that buying low and selling high is how people make a profit, but this does not always mean that the cheapest piece of land is the only one with the potential to earn a higher return. What happens when you buy land at an inflated rate is that it takes an extremely long time for you reap financial gains from your investment.
Fact: Not all lands are good investments. The land varies in price and value.
3. The Value of Land Grows Slowly
Another popular myth that we are going to be debunking is how people think that the value of land grows at a slow rate. Most times, the growth in the value of land depends on whether the land is prime or not.
If the land is a bit far from urban and residential areas, its value will grow slowly over time, unlike a land that is close to the city. Hence, where you buy a land determines how fast its value increases.
Factors such as economic activities, immigration, location, amongst others usually determine how fast the value of your land will grow.
Fact: Value of land is not static. Value is affected by market factors in the real estate sector.
4. You Can Buy Land Yourself
Land acquisition is not as simple as picking off a bar of chocolate off the shelf of a supermarket, paying for it and walking away with it. There are laws that regulate the acquisition and selling of land. The idea that you can buy land by yourself regardless of how much you know about it is a land investment myth.
To cut down the risk involved in land acquisition, it is advisable to go through reliable real estate professionals who understand the trends in the real estate sector. You don’t want to lose your money to fraudsters as many have done in the past.
Fact: Work with a reliable real estate professional to cut down the risks involved in land investment.
5. Cheap Land is a Good Investment
Everyone loves cheap things and land is no exception. However, most people believe that when buying land, the only thing to look out for is its affordability. This is one of the popular land investment myths in Nigeria.
In the real estate industry, buying land that costs you a lot of money comes with 100% possibilities of giving you high returns on your investment. This is achieved when top-notch tenants occupy the property or when the cost of maintenance on the land is low.
When dealing with the myth that cheap land is always a good investment, you should also realize that it is possible to buy land at a cheap price and yet find yourself owning land that is yielding returns slowly or owning one that is extremely expensive to maintain.
Fact: Cheap land that is expensive to maintain or fails to yield returns on investment is not worth it.
In conclusion, investing in the real estate sector is interesting and profitable. You accumulate wealth from your investments over time by either buying land for personal building purposes, rental income or commercial use. As an investor, you can cash in on what the land appreciates in value years after years.
