Are you a Nigerian living abroad who is interested in investing in real estate back home, it’s crucial to know how to buy property in Nigeria from abroad safely. Avoiding property scams in Nigeria is a top priority, especially when you can’t inspect the property in person. This guide will show you six ways to inspect and buy property in Nigeria remotely without the fear of being scammed.

Understanding the Real Estate Market as a Nigerian living abroad

Before diving into the strategies let’s understand the market landscape. Data from the World Bank projected diaspora remittances into Nigeria in 2023 to exceed $20 billion, and about $55 billion by the end of 2024. This upward trend is projected to continue, with a portion earmarked for real estate investments.

Concerns About Property Scams and Uncertainties

Even though the appeal of investing in land is strong, the worry about falling prey to scams and uncertainties is a big concern. Many individuals fear being deceived and losing their money to other people. Also, the stories of people caught up in courtroom battles over disputed land amplify these worries and make the Nigerian property purchase process uncomfortable for Nigerians living abroad.

This article throws more light into how you can get a secure property investment in Nigeria and also ways to spot and avoid property scams.

8 Safe Ways to Inspect and Buy Property in Nigeria From Abroad

1. Don’t buy land from Omonile unless you are an Omonile yourself

To address this risk, it is important to purchase land from a real estate company. Dealing directly with the traditional landowners, also known as Omonile, comes with risks that can potentially make you lose any dime invested in that transaction. Opting to buy land within established estates provides a level of protection. Established real estate companies not only verify the legitimacy of the land but also, offer ongoing maintenance and security services.

2. Understand and Verify Property Documents: Checking the Authenticity of Property Documents to Prevent Scams.

Having an understanding of land documents is essential. Documents like Certificates of Occupancy (C of O), Governors Consent, and Gazettes indicate the authenticity and security of the property. Being cautious with status requires an evaluation of your plans for title perfection. Educating yourself about these documents will empower you to make decisions and steer clear of land disputes, down the road.

Always verify property documents to ensure their authenticity and consider using legal assistance to help with the Nigerian property purchase process.

3. Inspecting Property in Nigeria Remotely: Ensure to Conduct Virtual Property Tours

Take advantage of advancements to carry out assessments of potential properties. Videos displaying the landscape features, accessibility, and neighboring developments offer insights. To enhance credibility, engage agents to conduct tours ensuring transparency and aiding in well-informed decision-making.

4. Ensure Remote Participation in Land Allocation Processes

Engage in virtual land allocation procedures to secure your investment from the diaspora. Trusted agents can represent you through video calls during the allocation process simplifying the steps involved and providing peace of mind.

buy property in Nigeria from abroad: virtual tour camera

5. Ensure Safe Document Handling with International Shipping Services

Upon acquiring the property handle your documents with care. Opt for shipping services such as DHL or FedEx to guarantee the delivery of critical paperwork. These documents serve as evidence of ownership safeguarding your investment for the future.

6. Collaborate with Reliable Real Estate Agents

Avoiding property scams in Nigeria can be challenging, but using reliable real estate agents can make the process safer. These professionals alleviate the need for research and due diligence by offering guidance and identifying lucrative opportunities. By partnering with a trusted agency like Teta Homes you gain access, to a curated selection of verified properties and seamless transactional assistance.

Also read: The Simplest Guide For a First-Time Property Buyer in Nigeria

7. Verify the Seller’s Identity: Ensuring the Seller is Legitimate to Avoid Real Estate Scams in Nigeria

When buying property in Nigeria from abroad, it’s important to conduct thorough research and verify the seller’s identity. You can do this by asking for their IDs, their full names, and the property documents; and then take it to the appropriate authorities to first, verify the property document and the status of the property to avoid buying a property in dispute; and second, verify that the name on the document is the real name of the person that owns the property. This will help in preventing real estate fraud in your investment in Nigeria.

8. Secure Payment Methods: Using Safe Methods For Property Transactions to Avoid Fraud

Do not pay for any property in cash!! Requesting cash payment from you is a red flag you must look out for. Trustworthy real estate transactions in Nigeria require proper documentation. To have a secure property investment in Nigeria, it is important that you use secure payment methods to prevent fraud.

Before buying property in Nigeria from abroad, it’s crucial that you conduct thorough research and verify the seller’s identity. Avoiding property scams in Nigeria can be an uphill task, but using reliable real estate agents can make the process safer. Virtual property tours are an excellent way to inspect properties in Nigeria remotely, giving you a clear view without having to travel. Always verify property documents to ensure their authenticity and consider using a lawyer to help with the Nigerian property purchase process. Finally, secure payment methods are essential to prevent fraud and secure your investment.

Why are Nigerians Hesitant About Buying Property in Nigeria From Abroad?

Now let’s tackle some concerns that might linger in your thoughts. It’s natural to worry about maintaining control of your investment while living abroad. However, by adhering to these steps you can rest assured that your investment is well looked after. With partners and strong protections in place, your property will patiently await your return— secure.

1. Fear of Being Scammed in Real Estate in Nigeria:

some Nigerians living abroad are uncomfortable with investing in Nigeria due to their experiences with property scams. It is indeed heart-wrenching that some real estate agents resort to scamming unsuspecting diaspora investors. This situation has indeed impeded the rate at which Nigerians abroad are willing to invest in Nigeria. However, investing in Nigeria is a very profitable venture if you deal with a trusted realtor or real estate company.

To avoid real estate scams in Nigeria, there are precautions you should take. These include conducting thorough property research, making sure to inspect the property (if not personally, by proxy), avoiding entering into undocumented transactions or paying in cash, verifying the seller’s identity, and seeking the assistance of professionals like a realtor, a lawyer, and a surveyor.

How Do You Spot a Real Estate Scammer?

When they try to convince you to make a down payment or deposit for a piece of land you have not seen or inspected.
When they try to pressure you to make a payment without giving you time to conduct due process on the property.
When they want you to sign off on a transaction or make a payment without you seeing the land or property documents.
When the agent convinces you to send the money into their account instead of the account of the owner (although some buyers have been able to build trust with an agent based on their integrity). But when the agent pressures you to send money to them, it’s a red flag.

2. The Unstable Exchange Rates:

At the time of writing this piece, the exchange rate of the dollar to the naira is N1,617. Two months before now, it was about N1,335; and in January of this year, 2024, it was N899. These fluctuations in price make it difficult for some Nigerians abroad to invest in Nigeria.

How Do Unstable Exchange Rates Impact Diaspora Investment?

Currency Devaluation: When the value of the Naira decreases, exchanging the dollar for the Naira becomes less attractive. There is also a concern that it might depreciate further.
High Inflation: As the value of the Naira drops, prices for goods and services such as construction materials and labor typically increase, leading to high investment costs.
Economic Uncertainty: The significant decrease in the value of the Naira could signal challenges such as inadequate management, or political issues which can make investments more uncertain.
Returns: With devalued Naira, any profits earned from real estate transactions in Naira may not hold as much value when converted back to foreign currency.
Market Instability: Fluctuating currency rates can result in property prices being unpredictable, making it challenging to sell or rent properties at good rates.
Higher Transaction Costs: Sending money to Nigeria may become more costly due to an unstable exchange rate, this can result in higher real estate investment costs.
Reduced Purchasing Power: The weakened Naira means that Nigerians living abroad cannot purchase much with their money, limiting their ability to invest in properties.

Why is Now the Perfect Time To Buy Property in Nigeria From Abroad?

Better Value for Money – Increased Purchasing Power: When the Naira depreciates, Nigerians earning in dollars tend to get more for their money. For example, a property priced at N16,000,000 would translate to $17,819 in January, $12,308 in May, and a mere $10,000 in July. This makes it more cost-effective to invest in property
Safeguarding Your Savings – Beating Inflation: Investing in real estate is a strategy to shield your funds from devaluation. As the Naira weakens, property values may rise, enabling you to preserve or potentially grow your savings.
Consistent Income Stream – Rental Returns: Property ownership can generate a stream of income through rental payments. This additional income can help offset any losses incurred due to a weak Naira.
Future Planning – Strategic Long-Term Objectives: Nigerians living abroad aspire to return home eventually. Acquiring property today at low prices ensures they have a home or investment opportunity secured for the future.
Lucrative Investment Opportunity – Appreciating Value: Urban properties have the potential to appreciate significantly over time. Buying now could mean that you sell at a much higher price in the future.
Secure Investment Option – Less Risk: Unlike stocks or other volatile investments prone to fluctuations, real estate typically offers stability and security.
Investment Diversification – Spreading Risk: In times of uncertainty, it’s a great choice to diversify your investments. Owning a property in Nigeria can be a good way to diversify your investments. It also helps you spread out the risk across different assets.
Emotional Ties – Connection to Home: Many Nigerians living abroad have a connection to their homeland, and owning property there provides a sense of security and belonging.
Government Support – Incentives: At times the Nigerian government offers incentives such as tax breaks or relaxed regulations to encourage property investments.
High Housing Demand – Increasing Need: With the growth of cities in Nigeria and the increasing demand for housing, investing in property now could not only meet this demand but also, prove to be highly profitable.

3. Government Demolitions:

The constant demolition of properties in Lagos especially, has given Nigerians living abroad considering investing back at home a reason to hold back. This has contributed to slowing down the speed at which diaspora Nigerians invest in properties in Lagos. Some, however, are running away from investing in Lagos, rather, they go on to invest in other parts of Nigeria like the Southeast (Imo, Abia, Enugu, Anambra, and Ebonyi) and the Southsouth (Rivers, Delta, Crossriver, Bayelsa and so on).

Read: What are the basic steps to take when buying land, house, property in Nigeria?

Get Secure Property Investment in Nigeria

Buying property in Nigeria from abroad is not merely a possibility, it represents an opportunity waiting to be embraced.

By following the outlined tips for Nigerians abroad buying property, and embracing the advice given, you can confidently have a secure property investment in Nigeria, and navigate the real estate market setting off on a path towards building wealth and achieving independence.

Don’t let distance or uncertainties hold you back. Take that leap of faith secure your future and tap into the opportunities of real estate investment in Nigeria today.

Utilizing Technology By Overseas Nigerian Property Buyers

In this era of technology, geographical barriers are no longer obstacles that cannot be overcome. With the use of tools, investing in real estate from anywhere in the world has become easier and much more convenient. By leveraging resources and online platforms, you can conduct research, participate in online property inspections, and complete transactions from wherever you are in the world. Embrace these advancements to simplify your property purchase process, and maximize your potential in the real estate sector.

Creating Wealth for Future Generations

Beyond benefits, investing in real estate presents an opportunity to build a lasting legacy for generations to come. By acquiring property in Nigeria and nurturing it over time, you not only secure your financial future but also, establish a foundation for prosperity and stability for your children. Real estate investments can endure through generations, offering enduring wealth and security for your family’s heritage.

Keep Gaining Real Estate Investment Knowledge

Acquiring knowledge stands as an asset, for any investor. Dedicate yourself to learning about the nuances of the real estate market in Nigeria, stay updated on regulatory shifts and market trends, and consistently explore avenues for growth and diversification. By arming yourself with knowledge, you empower yourself to make informed decisions and maneuver through the complexities of real estate investment with certainty and skill.

In conclusion, let this guide act as a rallying call for Nigerians in diaspora, who aim to safeguard their futures through real estate investment. Opportunities are plentiful, resources are within reach. The time to act is now. Seize the moment, utilize the tips provided, and embark on a path toward building wealth, financial stability, and enduring prosperity.

Your future beckons – embrace it with bravery, belief, and determination. Want to invest in a property in Nigeria? Let Teta Homes be your companion. You can chat with us instantly on WhatsApp here. Have a property request? Make your request here.