By Akhigbe Dominic M.
A few days ago, I looked back with nostalgia how I have lost grounds in land acquisition. Such memories don’t leave me smiling one bit. In my later days in the higher institution, I had the rare opportunity to have worked with a man on part-time basis in the area of Real Estate and land speculation. The compensation may not have been fantastic, but it was sure not too little to make some impact in land acquisition in the outskirts then. I still remember how much exposure I had with this same man who was more of a mentor to me.
I recall vividly one of those trips we made to the flourishing community called Ofada, in Ogun State. I had gone with him to check a vast community land that was just there for the taking. The community was just interested in anyone that was ready to throw a few things back in the community; may be bore hole water or a good structure for the Elementary school that was then begging for attention, or even a skill acquisition center for the teaming youths. In all; that was needed then to have land in abundance was to show some goodwill to the community. I never did.
A couple of friends I discussed the venture with laughed the idea to scorn. They said my investment was as good as thrown to the marines should I dare such anambitous venture. Instead, we changed our cars every two years and celebrated in grand styles every time a member of the circle did. To compliment our status; we moved from flat to flat. Each time a friend in the league was to get a new flat; all other members of the cycle must visit the new flat to carefully access it to ensure it conforms to what all other members of the friends’ league would look up to. I even remember buying a Multilinks mobile phone for One Hundred and Eighty thousand naira in the same time cycle. I was soon after described with the mobile phone; that student that uses mobile phone. To us then; this was classy, an identity of superiority.
Sometimes in the very early eighties; I went for a seminar in Excellence Hotel, Lagos. We were taught how a simple investment of two thousand naira in the stock market would return over 1000 percent in a year! I shifted priorities. I reduced my preference for new flats and disengaged from the circle of friends that delighted in replacing cars every two years. I started pumping my hard earned cash, as a hustling die-hard student in stocks. I adopted this as a habit till I graduated and got gainfully employed. Things looked good and I started counting my blessings.
By the second quarter of 2007, there were clear signs of trouble in the horizon. Only the experts in stock forecasting could see it then but they would jealously guide such news as that was a very quick way of packing up shops. Much latter that year, it was clear that all was not well with the stock option of investment. By 2008, 2009 and beyond; we lost millions to the global stock crunch. As good as this looked, I was proved wrong that it was a safe haven for investment as not a single stock investor has recovered from this tsunami yet.
Sometime, in 2006; a friend bought an Acre in today’s Ajah; Badore Road to be precise. On December vacation, 2008, he requested we drove there with my car. Since it was holiday time and my bosses who would usually recall me for urgent jobs at anytime of the day had travelled to Asia with their families; I knew I had all the time on earth. So, I naturally obliged him. By the time we drove to Lekki 2nd Roundabouts; I was threatening to turn back if we did not get there in another fifteen minutes or thereabouts. For me; it was madness for anyone to throw money into that God forsaken distance when there were better things to be done with the money.
However, my friend who was gifted in the act of persuasion successfully got me on the road for close to another hour before we got to the land. The first shock was the distance. The second disappointment was the fact that it was bare swamp. I was enraged and I threatened to leave him in that bush if he did not hop into the car as I was ready to drive off. Almost half way driving back home; I did not speak with him. Why would he choose to waste my precious time with such impunity when we could spend same winning and dinning with our hood boys at such a season? Well, for me; he wont get me a second time. Due to the disapproval I showed for such a needless journey into nowhere, my friend didn’t discuss land issues with me again. He was not discouraged.
While I kept hoping that the capital market would bounce back and I kept pumping my hard earned salary in that direction; my friend kept pumping money into outskirts lands. If my memory serves me right; the last Deed of Assignment I made for the half a plot that was sold from the same land, I was paid over three hundred thousand naira representing about five percent of the sales! My guy now lives in Magodo; a property he apparently purchased with proceeds he realized with part proceeds from the sales of one of the (then) outskirts lands. By all standards, he is not a small fry in the society any more. I would say; land made him. He travels all over the world at will. His family spent a whole month in France last summer and he told him the trip cost him just over four million naira! Yours sincerely still hope that some day; some fortune would smile on the capital market.
TWENTY YEARS AGO, Oniru, Ikate Elegushi, and most parts of Lekki Phases 1 & 2 and of recent Okun Ajah were outskirts in Lagos where no one wanted land. About thirty years ago, Magodo, Shaginsha, and Omole Phase 1 were outskits no one wanted them either. Less than forty years ago, Allen Avenue and Opebi were majorly outskirts where no one would want land. Even Ogba, Isolo, Ifako, all in Lagos were far from being exciting for any land investors. Today; these are no starter areas for property Investors! The question is; why do we always get to the outskirts when it has become a city Center? Why do I owe land in square meters when I can owe in Acres? Am sure none of us plans not to be alive in 5, 10, 15 or 20 years time.
A client gave me a brief to handle a civil Writ against a land grabber who trespassed his plots of land in Okun Ajah, Lagos Island. I requested to visit the land so that I would have a better understanding of what transpired. When I got there; I was shocked. It was all swamp. Only his 1 Acre was sand filled. He confided in me that he bought the whole Acre for less than Eight Million Naira in 2009. After the intruders handed the land back to him, as a tradeoff to the gigantic Claims we filed against them at a Lagos High court; my client told me he wanted to sell it to avoid further trouble. A land vendor brought a prospective buyer to my office a few weeks latter and he was ready to drop the cheque of One Hundred and twenty thousand naira if only my client was ready to come down from his one hundred and fifty million last offers. This is close to 2000 percent and it’s still rising. This is the goldmine land is.
Truly, there is nothing wrong with other investment windows. However; experience has shown me that the best and safest investment on earth is earth itself!
Akhigbe is a consultant in Real Estate & an investment portfolio manager and a seasoned Nigerian Micro, Small & Medium Scale Business Coach. Contact:08034846284
