How to determine the best type of land to invest in.


Investing in land is one of the most profitable niches you can be in, and it is a great way to build wealth without having to borrow money. However, successfully selecting the right type of land to invest in requires some understanding of real estate and can prove a little challenging and even difficult for a first time or less experienced investor.


How do you now know that the land of your choosing isn’t poor, overpriced, or rife with problems? How do you tell if a piece of land, a location, or an environment will be profitable soon or actualize its promised potential?


These are only a few of the questions on the minds of people looking to invest in landed property and homes, and the reality is that they are all very valid and important questions, as knowing how to choose the right kind of land for you is the difference between a successful investment, and a wasted investment.


So, to find the best properties, the best prices, and receive value for their money, every potential landowner/land investor must consider these 5 crucial questions before closing the deal.


  • The physical location of the property – Naturally, the location of the property is a very important factor to consider, and some of the determinants of a location’s prospects are; the businesses who have also invested in that area as well as the Government Projects planned for that area. These are key indicators that will help a buyer understand what that area might look like in a few years, or the promised development timeline.


If the goal is to purchase residential land and develop for investment purposes, you want to look for landed properties in existing or projected high-growth areas. These are areas where populations and economies are growing or are (credibly)projected to grow. This is because properties are in higher demand in such areas, and as such rental, lease, or purchase value will be high.


Other factors and amenities to consider when investing in landed property are proximity to; major roads for ease of access, Industry/Offices, nightlife, entertainment, and medical facilities, and schools,. Take for Instance, PWAN Haven’s Abijo G.R.A properties like PWAN Court and Royal Haven Estate located  between 7-10mins from the well known Caleb International School, O and O Filling Station and a major express way.


  • Physical FeaturesThe physical characteristics of the land are a vital consideration. Is it dry land, or a wetland? The latter would necessitate filing which would come at an extra cost to you unless the Real Estate Company is handling it, which is another thing you want clarity around. Who will be picking up the cost of the land defects or improvements?  This will inform you of any issues or difficulties involved in preparing the land for home ownership or investment.


  • Security– Taking into account the current state of Nigeria, the rise in arm robbery, kidnappings, and other factors, when buying a piece of land, security is a major factor that should be taken into consideration. Is the proposed land in a safe neighbourhood or a guarded estate? While particularly crucial in Nigeria, security isn’t just a local concern. It is a factor everywhere in the world that has either a positive or negative impact on property value and serves as a barometer for whether or not it would be a wise investment for those wishing to buy land on which to erect either their own family homes, or build family styled homes for investment properties. It is one of the reasons Haven Court or family-designated estate comes with the assurance of 24-hour security.


  • Amenities: No one wants to live in a desert-like vicinity or far from civilization, even if they want a quite, peaceful residential life, so depending on your goals, you should think about whether the land you are buying has access to or a plan for amenities like a gas station, school, grocery store, and even more social features like parks or gyms. Beyond proximity to a great school and a filling station, our estates in Abijo, also boast access to other essential and desirable amenities.


  • Zoning and utilities – Even if you already know that the land you’re considering is zoned residential, it is important to make sure that the surrounding areas are not zoned differently. For example, if land that surrounds the property is zoned commercial, buildings can be erected for industrial use. If the land is zoned agricultural, a farm can be put in with a large number of livestock. Either of these situations can make living conditions unfavorable. Ideally, the land that surrounds the property will also be zoned for residential purposes.  It is also important to find out if utilities are already on site, or if you have to run them yourself. E.g is round the clock power supply a part of the package like is the case in our Haven Court estate? Are there water issues, cable, and telephone service connections available? If not, you’ll need to contact the service provider and have a line run for an added fee. This tends to be a problem in developing areas and can add millions of naira to the cost of the project.

In conclusion, as said earlier, determining a good land is never an easy job. But it is a necessary evil because while investment in good land brings in unimaginable profits, an investment in bad lands bring the opposite, and creates half true perceptions around land investments. This is why we must be on the lookout and do our own due diligence.

To find out more about the broad range of landed and other property types we have in Abijo G.R.A and Eti-Osa II (Ibeju LGA ) contact us on: Instagram- @Pwanhaven, Facebook – @pwanhavenoffical(page), @PwanHaven (account), YouTube – PWAN HAVEN, Twitter – @Pwan Haven, LinkedIn @ PWAN HAVEN INVESTMENT & REALTORS LTD.


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