Buying a home is an exciting journey, but it can also be full of unexpected surprises—especially when it comes to hidden costs. Many first-time homebuyers in Nigeria discover that the purchase price is just the beginning. We spoke to several homeowners who shared their stories about the hidden expenses that caught them off guard and what they wished they had known before taking the plunge. Their experiences will help you prepare for the true cost of homeownership.
Hidden Cost #1: Legal Fees and Agency Charges
“I thought I was ready when I saved up for my new home,” shares Yewande, who recently bought her first house in Ikoyi. “What I didn’t realize was that I would need to pay additional legal fees and agency charges. These added up quickly and blew my budget.”
In Nigeria, it is standard practice to pay for both the services of a lawyer and an estate agent when purchasing property. These fees can range from 5% to 10% of the property’s value. Ensure you budget for these fees early on to avoid any financial strain.
Hidden Cost #2: Cost of Documentation and Registration
While you might be aware of the property’s price, the costs associated with documenting and registering your new property with the appropriate government bodies are often overlooked. This includes fees for obtaining a Certificate of Occupancy, Governor’s Consent, and other necessary permits. In some cases, these fees can be substantial, particularly in major cities like Lagos and Abuja.
John, a homeowner in Lekki, said, “I had no idea how expensive it would be to register my property. The fees were almost as much as the down payment! Make sure to factor this into your budget.”
Hidden Cost #3: Utility Connection Fees
Don’t forget about the utilities! Connecting water, electricity, and waste management services to a new home can be costly. Some areas require substantial fees for new connections, and in more remote locations, additional infrastructure may need to be installed.
Emeka, who bought a home in Ikeja, explains, “We thought we were all set until we moved in and realized we needed to connect water and electricity. The connection fees, along with some additional setup costs, set us back quite a bit.”
Hidden Cost #4: Renovations and Repairs
Another hidden cost that often surprises new homeowners is the need for unexpected repairs or renovations. Even if a home looks perfect during your initial walkthrough, underlying issues such as plumbing, electrical faults, or structural damages might only become evident once you start living there.
Blessing from Port Harcourt advises, “Always budget for repairs or renovations, even if the house looks new. I had to replace all the plumbing in my kitchen within the first month!”
Hidden Cost #5: Community Development Fees
Some residential areas or estates in Nigeria charge community development fees for the upkeep of common facilities, security, and other communal services. These fees can vary widely, and they are often a surprise to new homeowners.
Adewale, who owns a home in Ajah, notes, “I had no idea we had to pay community fees until I received the first bill. It’s not a huge amount, but it’s recurring and adds up over time.”
Conclusion
Hidden costs can quickly add up, turning your dream home purchase into a financial burden. By being aware of these potential expenses ahead of time, you can better prepare and avoid the stress and frustration that come with unexpected costs. Make sure to do your homework, budget for these extras, and speak to professionals who can guide you through the process.
