Buying an off-plan property in Nigeria can be an excellent investment opportunity. Think about it: Off-plan properties offer lower prices, flexible payment plans, and many other benefits. 

However, it also comes with certain risks if not handled correctly. Many investors in Nigeria have lost money due to poor decisions, lack of due diligence, and outright scams. 

Imagine investing in a development that never gets completed or discovering hidden charges that drain all your money. Worse still, you could find yourself in the middle of legal disputes over land ownership. These costly mistakes can turn a promising investment into a nightmare! 

In this guide, we’ll walk you through the five biggest mistakes to avoid when buying off-plan properties in Nigeria, so you make the right decisions. 

 

What are Off-plan Properties? 

An off-plan property is a property that is purchased before construction is complete. It is often a residential or commercial development.

Benefits of Investing in Off-Plan Properties

Before diving into the mistakes to avoid, it’s important to highlight why off-plan properties can be a great investment. Here are five key benefits:

1. Lower Prices & Flexible Payment Plans – Off-plan properties are usually sold lower than completed units. Buyers also enjoy staggered payment plans, making property ownership more affordable.
2. Higher Return on Investment (ROI) – As the property nears completion, its value appreciates, allowing investors to sell at a profit or enjoy better rental yields.
3. Customization Options – Buyers can often personalize aspects of the property, such as interior finishes and layouts, giving them more control over their investment.
4. First Choice of Units – Investors get to choose the best units in terms of location, view, and layout before the project is completed.
5. Modern Features & Better Quality – New developments tend to incorporate the latest designs, energy efficiency, and modern amenities, making them more attractive in the long run

 

Related:https://www.thinkmint.ng/buyrealestate/why-you-should-consider-buying-off-plan-properties/

 

Mistakes You should avoid when dealing with Off Plan Properties 

 

1. Failing to Verify the Developer’s Credibility

One of the biggest mistakes investors make is trusting developers without proper background checks. This is one reason why they fall victim to developers taking their deposits and vanishing with them, leaving them stranded.

 To Avoid This Mistake:

• Research the developer’s track record. Check for past projects and reviews from previous buyers. For example, If you are dealing with a real estate company,  read reviews on Google. 
• Verify the company’s registration with the Corporate Affairs Commission (CAC).
• Visit their previous projects to assess quality and completion rate.
• Be careful of developers who have no physical office or verifiable portfolio. One good way is to check out their social media platforms to see if they have a digital footprint.

 

 

2. Not Checking the Property’s Title Documents

 

Don’t fall into the mistake of assuming that a developer has the legal right to sell a property without verifying the documents. This can lead to issues such as government acquisition, land disputes, or fake documents.

To  Avoid This Mistake:

• Request and verify all title documents, including the Certificate of Occupancy (C of O) or Governor’s Consent.
• Search the Land Registry to confirm the land’s status.
• Engage a qualified real estate lawyer to review the documents before making any payments.

 

Related: Important Documents to Observe When Purchasing A Property

3. Ignoring the Payment Structure and Contract Terms

Many buyers do not fully understand the payment terms and hidden charges in off-plan property contracts. Some contracts have ambiguous clauses that may lead to extra costs.

 For instance, some developers impose fines on late payments while some will have it stated in the contract that there could be price change due to the high costs of construction. Not understanding or ignoring could create problems in the long run.  

To Avoid This Mistake:

• Read the contract thoroughly and ask for clarification if there are confusing terms. 
• Work with a qualified real estate lawyer before signing any agreement.
• Ensure the payment structure is realistic and aligns with your financial capacity.
• Look out for hidden charges such as service fees and infrastructure costs.

 

4. Not  Paying Attention  To Construction Quality And Timelines 

Some developers promise unrealistic completion timelines, leading to delays and frustration for buyers. Additionally, poor construction quality can lead to safety concerns and high maintenance costs. 

To Avoid This Mistake:

• Verify the developer’s history with project delivery timelines.
• Request a detailed project schedule with milestones.
• Conduct periodic site inspections to monitor progress and construction quality.
• Ensure the contract specifies penalties for delayed completion.

 

 

5. Not Appraising the Property Value

Many buyers focus only on acquiring the property without considering its future resale value or rental potential. A property with low demand may lead to financial losses.

To Avoid This Mistake:

• Choose properties in high-demand locations with good infrastructure.
• Research future developments in the area that may impact property value.
• Consult with real estate experts on the best investment options.
• Have a clear strategy for renting or reselling the property in the future.

 

Read Also: How to Assess Property Value; Factors Beyond Location

 

Conclusion

Investing in off-plan properties in Nigeria can be highly rewarding, but it requires careful research and due diligence. Avoiding these common mistakes will help you make a safer and more profitable investment.

 At Thinkmint Nigeria, we understand the risks and challenges of investing in off-plan properties. That’s why we provide expert guidance, legal verification, and due diligence to ensure your investment is safe and profitable.  With Thinkmint Nigeria, you are guaranteed of: 

•  Verified Developers – We only work with reputable developers with a track record of successful projects.
•  Legal & Document Checks – Our team helps you verify title documents and contract terms to prevent legal issues.
• Transparent Deals – affordable with no hidden fees, no surprises—just clear, honest property transactions.
• Prime Locations:  Most of our properties are located in prime locations with high appreciation potential.
• No Agency Fee –  We charge no agency fee for any transaction. 

Are you ready to make a secure off-plan property investment? Visit our Website at www.thinkmint.com/buyrealestate to check out our current off-plan projects.