Looking for affordable properties in Nigeria? Finished houses might be a better choice than buying land and building from scratch, which can be stressful. But, if you’re a first-time buyer of finished houses, there are important fees to note before making a purchase. Here’s what you need to know.
When buying a home, the risk of deception is higher due to a significant one-time payment. To avoid such pitfalls, having the right information is key. Let’s delve into the details.
Before you seal the deal, do your research to understand additional costs associated with property purchase, preventing debt accumulation before ownership.
Additional Costs to Consider:
1. Fees:
- Legal fees (negotiable): 5% of the property’s cost
- Agency fees (negotiable): 5% of the property’s cost
- Survey plan: A semi-detached duplex survey can cost more than N250,000, with each survey potentially at N400,000. Government surveyors are needed for proper property division, costing N780,000.
- Deed of assignment: Up to N1 million for the original owner’s document signing, as a penalty if the developer lacks a registered deed of assignment.
2. Taxes:
- Request taxes of the original owner in advance.
- In Lagos, processing the governor’s consent requires paying a minimum of N350,000 in taxes to the state government. Failure to do so may cost N500,000 or more to cover the seller’s taxes.
Conclusion:
Plan by being aware of these costs. If you’re eyeing an old house, set aside around N5.5 million for major renovations. Take your time, plan for associated costs, and avoid rushing into a purchase that you might not appreciate later.