Should You Buy a Property in a New Development in Lagos? The Pros and Cons
Lagos is an economic nerve center in Nigeria that never sleeps. With its incredibly fast-growing population and booming real estate market; it’s little wonder that new property developments keep springing up in this metropolis.
If you are considering investing in a property in Lagos; one of the questions that might cross your mind is whether to invest in a new development. The bright side is that indeed much can be quite captivating with the prospect. However, there are also disadvantages which you should know.
Let’s look at the pros and cons of buying a property in a new development in Lagos; to help form a decision.
Pros:
Modern Amenities; Probably one of the most significant advantages of buying in a new development would be; that it puts you in the position to access modern amenities and infrastructure. New property often features contemporary designs, energy-efficient systems, and smart home technology. You will also find that most of these new developments give you lifestyle amenities such as gyms, swimming pools; and communal green spaces.
Customization Options; If you buy off-plan or early into construction, there may be the opportunity to make some customizations on your property. This may include choosing your own fixtures and fittings; deciding on color schemes, or even changing the layout a bit to better suit your needs.
Payment Plans: Most developers offer flexible payment plans to buyers in order to facilitate the sale of a new property. These mostly include paying in installments; wherein one has to deposit a certain amount and other payments at regular intervals while construction is going on. This might be a good way to secure your dream home without having to pay up the money in its totality.
Potential Capital Growth: If the new development were located in a nice area of Lagos, then it could offer some good potential for capital growth. These well-located properties tend to rise in value with the growth of the city over a period of time, hence offering a sound investment opportunity.
Developers’ warranties: Most new properties have attached developers’ warranties. This can give some piece of mind to the buyer as the building structure is warranted, and quite often fixtures and fittings are guaranteed for a certain number of years.
Cons:
Delays and Unforeseen Issues: If there is one primary risk associated with buying in a new development, that would be delay or some other construction issue that could arise. From planning permission setbacks to construction delays, the list is endless of factors that can push the completion date further down the line. Of course, this can be frustrating if you’re excited to move into your new home or start collecting rental income.
Lack of Established Community: When you are buying into a new development, generally, you’re buying into a community that isn’t established. It can take years for an area to develop its character and community feel. If what you’re looking for is an established area with a strong sense of place, an older property might be better.
Limited Rental Market Data: If one is looking to purchase the property for investment purposes, it becomes difficult to gauge the true condition of the rental market regarding new development. You cannot set the right price for rent and see the demand for your property without historical data.
Further Costs Possible: Be aware that there might be more costs involved in buying in a new development. These could include legal fees, service charges, and utility connection fees. Be sure to go through the contract and know what all your costs will be up front.
Limited negotiation power: When purchasing off-plan or directly from a developer, there is limited room for price negotiations. The prices will often be fixed by the developers, who will be less willing to move on these, especially for popular developments in high demand.
In brief, some of the benefits that place purchasing of a property in a new development in Lagos at the top of the list are that one stands to enjoy modern facilities and make changes to suit his or her taste not forgetting the potential capital appreciation. However, one needs to be wary of the accompanying cons in the form of construction delays, no established community, and limited negotiation power.
Ultimately, the decision to buy in a new development depends on your individual circumstances, preference, and risk tolerance. It is very important to do your homework, go through the contract with fine lines, and consider professional advice before making any commitment.
