For many Nigerians, owning a home is a lifelong aspiration, a symbol of success and stability. As a first-time home buyer, you’re taking a significant step towards securing your financial future and creating lifelong memories

However, homeownership in Nigeria can be complex and challenging. Buying a house in Nigeria is an important decision that requires careful consideration and planning.

This article covers 12 tips to consider as a first- time home buyer in Nigeria, ensuring your dream home becomes reality.

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Tips to Consider as a First-Time Home Buyer

Buying a home isn’t just for fun, but a decision that needs careful consideration. Just as you consider some factors before getting a land, there are certain tips to take into consideration before getting a home.

This helps you avoid possible future challenges and ensure your home purchase is secure and valuable.

12 tips to consider as a first-time home buyer in Nigeria includes:

• Budget
• Location
• Building Quality
• Home Documentation
• Access to Utilities
• Real estate agent
• Home Inspection
• Financing options
• Additional costs
• Security
• Future Appreciation
• Legal due diligence

1. Budget

If you are buying a home for the first time, it is important to work with a budget.  Before you start browsing home listings, it’s crucial to have a clear understanding of your budget.

This includes assessing your current income, savings, debts, and monthly expenses. Be sure to know the average cost of buying a home in Nigeria especially in potential cities.

2. Location: Every first-time home buyer must consider

Location is one of the most important factors in home buying. It is important that you spend time researching neighbourhoods that align with your priorities.

This can be near to work, schools, public transport, amenities, and safety. Consider future developments in the area, as these can impact property values over time.

Visit potential neighbourhoods at different times of the day to get a sense of traffic, noise levels, and overall ambience.

Due to changes in climate and weather frequency,  consider the area’s susceptibility to flooding, especially in coastal cities like Lagos or Port Harcourt.

3. Financing Options

Many Nigerians can’t afford to buy a house outright, so understanding your financing options is crucial.

Banks like First Bank, GTBank, and Stanbic IBTC offer mortgage products. However, interest rates can be high, often ranging from 15-25% per annum. Some banks offer special mortgage products for diaspora customers.

The National Housing Fund (NHF) government scheme, managed by the Federal Mortgage Bank of Nigeria, offers lower interest rates but has strict eligibility criteria.

Some property developers offer plans to pay installmentally, which can be more flexible than traditional mortgages. Cooperative societies offer loans for housing at more favourable terms than commercial banks.

4. Home Documentation: A must-check for a first-time home buyer

Ensure paperwork is authentic and complete. Completed paperwork, mortgage approval, and formal ownership of your new house are all part of the closing process.

Crucial documents include the Certificate of Occupancy (C of O), Deed of Assignment, and Governor’s Consent for the transfer of ownership. Carefully read over all of the paperwork. Ask questions if you don’t understand anything.

Hiring a reputable lawyer is important to ensure proper documentation and avoid any legal issues. Legal fees range from 5-10% of the property value.

5. Access to Utilities

Before you buy a home in Nigeria, you need to check if it has access to utilities. Some basic utilities should include: water supply, internet connectivity, drainage and sewage system.

If these aren’t available, you might need to install them and it would cost you a lot.

6. Real Estate Agent

A good real estate agent is a non-negotiable asset for first-time home buyers. They provide market insights, negotiate on your behalf, and help you through the complex paperwork involved in buying a home.

Look for an agent who is experienced, knowledgeable about the local market, and has a good track record with first-time buyers.

7. Home inspection

As a first-time home buyer, make sure you conduct a physical home inspection. When viewing potential homes, it’s easy to get swept up by aesthetics and overlook critical details.

Examine the condition of the roof, windows, plumbing, electrical systems, and foundation. Pay attention to any signs of damage.

Take note of the home’s age, the quality of its appliances, and any recent renovations. Be observant from the start to avoid shocking discoveries later.

8. Additional Costs

The cost of buying a home goes beyond the purchase price. Be prepared for additional expenses like legal fees, closing costs, property taxes, homeowner’s insurance.

Some areas may also require homeowner association (HOA) fees. Title documents which prove ownership can be quite costly, especially in states like Lagos.

You should also factor the costs of ongoing maintenance and utilities. Estate fees may also apply for people that live in gated communities.

9. Building quality

Poor construction has become a major issue in Nigeria. There have been repeated cases of building collapse. Do not rush to buy a home in desperation or because you found cheaper agents.

As a first-time home buyer, get a professional assessment of the building’s quality and long-term maintenance issues. This helps in avoiding future damages which may cost lives and destroy properties.

10. Security

Research the security situation of the area you want to buy a home from. Before you decide to make an offer on a house, you need to consider the safety of the neighbourhood

A safe and secure neighbourhood is a top priority. Look for areas with:

• Active community watch program
• Regular security patrols
• Well-lit streets and walkways
• Minimal signs of vandalism

Some neighbourhoods in Nigerian cities are known for better security than others. As a first-time home buyer, you can consider gated communities or estates that offer additional security measures.

11. Future Appreciation

While you may be buying for personal use, it’s wise to consider the property’s long-term value.

Upcoming infrastructures can boost property values. Economic changes can also affect an area’s desirability. Property value in places like Lekki and Yaba in Lagos has risen due to development and growth of tech hubs in the area.

12. Legal due diligence

Ensure the seller has the right to sell the property. In Nigeria, it’s not uncommon for multiple parties to claim ownership of the same land. Check for any outstanding mortgages, liens or other claims on the property.

When buying a home in an estate or a recently developed area, verify that all necessary approvals have been obtained from relevant authorities.

Given the prevalence of fraud in Nigeria, working with a reputable real estate lawyer is non-negotiable. This is highly important especially as a first time home buyer.

Final Thoughts

Homeownership is a major investment and source of stability. As a first-time home buyer, you can find a home that meets your needs and prepares you for future success.

Take your time to evaluate your options and make informed decisions.

Still finding it difficult? Consider consulting a reputable real estate company to start your journey towards owning your dream home.