Elsie UdohBuying a house in Nigeria from the Diaspora can be challenging, especially because you’re thousands of miles away. Since you’ll be unable to inspect the property yourself, you might worry about an untrustworthy housing agent snatching away your dream of either owning a place where you can call home in your country or investing in the growing real estate market.
You may also be concerned about what exactly to look out for when buying a house in Nigeria. It’s relieving to know that your worries get easier when you are well-informed. With proper planning and guidance, you can safely overcome this daunting fear of buying a house from the Diaspora and purchase one that suits your needs and tastes.
Join our WhatsApp ChannelTo make things easier for you, Prime Business Africa has put together a comprehensive guide about what to look out for when buying a house in Nigeria and a step-by-step process to follow. But first, let’s consider why you should buy a house here as a Nigerian in the diaspora.
Why You Should Buy a House in Nigeria From Diaspora
If you’re undecided as to whether or not to buy a house in Nigeria from the Diaspora, possibly due to the fear of being swindled, these reasons provided here have been specifically gathered to help allay that fear.
See why you should buy a house in Nigeria from Diaspora below:
- Investment Opportunity: The Nigerian real estate market is fast rising due to its growing population and expanding cities. Cities like Lagos, Abuja, and Port Harcourt are seeing steady appreciation in property values. This is a great long-term investment opportunity that can yield significant returns for you in the future.
- Generate Rental Income: Buying a house in Nigeria can provide you with a steady stream of passive income. You can buy a property and rent it out to get consistent earnings even while you’re abroad.
- Stay Connected to Your Roots: Owning a property in Nigeria provides you with a comfortable place for visits or a permanent return to your country. For some, owning a property back home helps them to maintain ties with their homeland, even while living abroad, which gives them a sense of belonging and security.
READ ALSO: How to Invest in Real Estate With No Money
Some Challenges to Expect When Buying a House in Nigeria From Diaspora
Although there are many advantages to buying a house in Nigeria from the Diaspora, it is not always a rosy experience without challenges. Knowing these challenges would better equip you to be prepared for them and not let anything detract you from your goal of owning a property in your country.
- Risk of Fraud: Not being able to verify property or agents in person can leave you vulnerable to scams, where properties might be misrepresented or not exist at all. Scammers often exploit the distance to deceive potential buyers.
- Inability to Physically Inspect Properties: Without being able to personally assess a property, it’s harder to verify the condition of the house, check out the neighbourhood, or make sure it meets your standards. This can lead to dissatisfaction or unplanned renovation costs later on.
- Communication Difficulties: The time zone differences can pose a challenge when buying a house from Diaspora. You might be unable to reach in times when you’re needed to make an important decision about the house you want to purchase.
Step-by-Step Guide to Buying a House in Nigeria From Diaspora
We’ve seen some common challenges that you might encounter when buying a house in Nigeria, but these challenges are not insurmountable. One effective way to overcome them is by knowing how to go about your house-buying journey from the Diaspora, and this guide will provide you with all you need to know.
Set Your Budget
Your first step when buying a house in Nigeria from abroad is to define your budget. Nigerian real estate prices vary significantly based on location, property type, and the state of the housing market. Upscale areas in Lagos like Ikoyi and Victoria Island have much higher prices than less central areas like Ajah or Epe.
When setting your budget, consider the following costs:
- Legal Fees: It’s essential to hire a lawyer who can verify property documents.
- Agency Fees: Real estate agents always charge a commission.
- Taxes and Stamp Duty: Depending on the state, there could be taxes or duties to pay.
Remember to account for fluctuations in exchange rates, as these can impact your total cost, especially if you’re paying from abroad.
Pick the Right Location
This will largely be determined by the purpose of the property, whether it’s for personal use or investment. Here are popular locations for diaspora buyers:
- Lagos: Home to luxury estates in areas like Lekki, Victoria Island, and Banana Island. But there are also affordable alternatives in growing suburbs like Ibeju-Lekki and Badagry.
- Abuja: As Nigeria’s capital city, Abuja offers some of the most luxurious homes in Asokoro and Maitama, but there are more affordable options in areas like Gwarimpa and Jabi.
- Port Harcourt: This is a key city in the oil-rich Niger Delta, which has numerous opportunities in the real estate market for property buyers.
Use a Trusted Real Estate Agent
Buying property from abroad requires eyes and ears on the ground and that’s where a trusted real estate agent comes in. The agent can be your go-to for finding the right property, ensuring proper documentation, and negotiating on your behalf.
To find a reliable agent:
- Research online platforms: Websites like PropertyPro.ng and Nigeria Property Centre list properties with verified agents.
- Ask for recommendations: If you have friends or family in Nigeria, ask for referrals to trustworthy agents.
Pro-tip: Ensure that your agent is familiar with the location where you want to buy, and never pay upfront until you’re certain of their legitimacy.
Understand the Legal Process
Property laws in Nigeria can be complex, and one of the biggest risks for diaspora buyers is falling into legal traps or fraud schemes. Here are some legal steps to be aware of:
- Title Verification: Ensure the property has a valid title, such as a Certificate of Occupancy (C of O) or Governor’s Consent.
- Deed of Assignment: This document proves that ownership has been transferred from the seller to the buyer.
- Land Use Act Compliance: Verify that the land adheres to Nigeria’s Land Use Act, especially in urban areas where there could be restrictions on development.
Always hire a real estate lawyer to help with the verification process and to avoid potential disputes.
Explore Financing Options
Buying a house in Nigeria from the Diaspora doesn’t mean you have to pay for it outright. Several banks and financial institutions offer diaspora mortgage loans to help Nigerians living abroad finance property purchases. Some popular banks that offer diaspora mortgages are:
- First Bank of Nigeria
- GTBank
- Stanbic IBTC
These loans usually come with competitive interest rates and flexible repayment plans. To qualify, you’ll need to provide proof of income, residency, and other financial documents.
Use Technology to Your Advantage
Technology has made it easier than ever to buy property remotely. Many Nigerian real estate agents and developers now offer virtual property tours and digital document signing. You can also use platforms like Zoom or Google Meet to hold meetings with your agent or lawyer to stay involved throughout the process.
Additionally, apps like WhatsApp allow you to communicate easily with sellers and agents without worrying about international call rates.
How to Avoid Fraud and Scams When Buying a House In Nigeria From Diaspora
Buying property in Nigeria from abroad can come with risks if you’re not careful. Scams are, unfortunately, common in the Nigerian real estate market, especially when dealing with buyers overseas. Here’s how to protect yourself:
- Always verify that the person selling the property is the legitimate owner or an authorised agent.
- Verify land titles and ownership, such as a Certificate of Occupancy (C of O) or Governor’s Consent, to prevent any future land disputes or legal issues over ownership.
- Seek recommendations from friends and friends on a reputable real estate agent to work with.
- Hire a local lawyer to guide the verification process.
- Only make transactions after you’ve confirmed the property documents and the legitimacy of the agent.
- Trust your instincts and if something feels off, get a second opinion from a trusted person.
Final Thoughts
When buying a house in Nigeria from the Diaspora, it is important to take caution and seek help from trusted friends and family as well as a professional to get adequate guidance throughout the process.
Whether you’re buying for personal reasons or as an investment, the guide provided in this article will help you make the right decisions along the way and secure your dream house in Nigeria even without being physically present.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lags State University.
