There is nothing hidden about the fact that buying a home in Lagos could be super expensive, and the cost goes even further up if your taste and preferences are more luxurious than modest. The hidden part, however, is the several costs that could sneak up on you if you are unfamiliar with the property purchase process. Some people believe hidden charges are quite sinister, as the name might imply, while some others think it’s a pretty regular business tactic that’s done with no ill intent. Investopedia describes hidden charges as additional charges added on that you may not necessarily be aware of at the time you signed up for a service. Hidden charges can also be called undisclosed fees. We covered the property purchase documentation process earlier; check it out here, and we will shed light on the hidden costs of buying a property in Lagos in this blog. We will not debate the ethics around hidden charges, but we will enlighten you on all you need to know to prepare for them.
The process of buying a house could be exciting; some have likened the feeling to having butterflies in your belly, so it is easy to get carried away and focus on the mundane things like which oven looks best in the new kitchen or what color you would like to paint your living room. It is common for first-time homeowners to dig deeper into their savings or emergency funds because they have significantly exceeded their original budget, as they had no idea there were more charges to worry about other than the cost of the house.
Now, let us get into hidden costs when buying a property in Lagos so you can plan better and draw up a more realistic budget.
1. Legal Fees
Too many times, first-time homebuyers forget that the act of buying a home is a legal affair. It means transferring property ownership from one person to another – hence the need for the services of a lawyer. A lawyer will verify the legal owner, review all legal documents, and draft contracts. This service costs about 1-2% of the property’s price and is a cost you should not avoid to protect yourself from fraud. Be aware of this hidden cost when buying a property in Lagos and plan for it.
2. Survey Fees
Before you buy a home in Lagos, one of the first things we advise you to do is call a surveyor. According to professions.ng, a real estate surveyor provides survey plans, land records, and property valuations to support real estate transactions. They help identify and resolve boundary disputes, encroachments, and other legal issues. Property buyers, especially first-time homeowners, must remember to call surveyors when purchasing, or they could regret it later when they discover that a part of the property encroaches on their neighbors.
Survey fees are usually inexpensive and worth paying compared to the risk of avoiding them. Survey fees are not fixed and depend on the location, type of property, and the surveyor contracted. Although the price is flexible, you must ensure you have a budget for this hidden cost when buying a property in Lagos.
3. Registration Fees
When buying a new house in Lagos, you must inform the government that ownership has changed by registering it at the Lagos State Land Registry. The process involves getting all required proof and paying your stamp duty and registration fees. The registration fee can cost 3-5% of the purchase price. Once you’ve submitted your documents and receipts of your payment, you’ve successfully registered your new home.
4. Homeowners Insurance
In a world of uncertainty, you must have some protection for the most crucial things in your life, like your house, valuables, and the loved ones who reside there. Investopedia defined home insurance as property insurance that covers losses and damages to a residence, along with furnishings and other assets in the home. It also provides liability coverage against accidents on the property.
Home Insurance might seem natural to pay for, but you will be surprised how many people in Lagos see it as unnecessary. Insurance should always be one of the first things to take care of when buying a home to give you that invaluable peace of mind.
5. Renovations and Upgrades
Everyone knows that to make your new house a home, you must renovate it to personalize the space based on your taste. However, you might do much more renovating than you projected, as some developers put in cheap or unappealing materials and fittings to save costs. We at BuyLetLive always advise that you have an expert thoroughly inspect the property to prevent any mishaps.
With these hidden costs now considered, you can buy a home with confidence, knowing that you have effectively planned for every possible expense that could pop up.
With this in mind. Are you ready to take the big step of buying a home in Lagos? Why not speak to one of our agents, and we will make you the proud owner of one in no time.