Land Banking is a buy-hold technique for investment in real estate. It is what we typically do when we
buy strips or plots of land in some place and sell at a premium the moment the area begins to develop
rapidly. So for example, I know of a family that held much of several acres in Onikolobo to Panseke axis
of Abeokuta – they have sold so much of it for a premium and still hold several more acres waiting to sell
at an even higher price. This explains land banking, but let’s take up a theoretical background to this.
Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land
with a view to selling the land at a profit when it has been approved for development. It involves a
conscious and intentional search then eventual purchase of huge swathes, aggregating them and ensuring
you have all the proper title documents. Holding it until a time such as when it would have significantly
appreciated in value and ready for development.
Now, we all seem to know this but we do not realise that we can begin to strategically own plots of land
and eventually a huge portfolio of lands. It will interest you to know that there are companies in Nigeria
that own as much as NGN15bn worth of land, which is a strong asset for their firm to deploy when
But you may be asking yourself; how do I get there and is it practicable for someone with my present
financial level? I will share with you how some of my clients as well as my company are going about this
process regularly and earning tremendous returns form same.
1. Land is easy to own, never let land transactions scare you. Once you follow the due process you
can be rest assured that you own it for life, except of course the Governor revokes your C of O.
2. Set aside a fairly reasonable amount of money in savings or mutual funds which can be invested
once reaching around NGN100,000. The modules my firm is offering for instance in our Land
Co-ownership Scheme will give at least 1200 square metres to subscribers who can either resell or
receive rent per annum from users.
3. If you want to go on your own, always do your due diligence before you buy any land and ensure
you perfect the title on any property before you proceed to the next one. Go to all your
inspections with your land surveyor and ask your lawyers to check documents that exist as well to
verify its validity.
4. Buy land in small bits with your savings or sell what you have to buy it. The sacrifice of today’s
pleasure for tomorrow’s wealth, choose wisely. Again, it is good to relate with companies and
persons who have statistical evidences to guide you in choosing the location to make your
purchase. Never make investment decisions on lands without proper statistical data or aerial
maps that guide you regarding the prospects of the location.
5. If unsure, always consult your Lawyer, Land Surveyor, Architect or Estate Surveyor.
Please, buy land anywhere as long as you can get the proper documentation done you will always be on
the winning side. I wish you a wonderful time figuring out the practicalities, and hope to hear your
company is leasing or selling lands to agro enterprises within Nigeria in 7 years.
CEO and Cofounder Spacecube Development LTD
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