Nigeria’s housing market is growing fast because more people are moving to cities and the population is increasing quickly. By 2025, more than 60% of Nigerians are expected to live in big cities like Lagos, Abuja, and Port Harcourt. This means many people need homes, especially affordable ones in the cities. But Nigeria already has a big shortage of houses and over 20 million homes are needed. This shortage is a big problem, but it also creates a good chance for people who want to invest in property. So, with all this happening, many people wonder: is it a good idea to buy a house to fix up and sell or rent in Nigeria today? In this informative write-up, we will provide helpful answers to this question.
What does buying a house to renovate mean in Nigeria?
Buying a house to renovate in Nigeria means purchasing a property that is not in perfect condition and needs repairs or improvements before it can be comfortably lived in or rented out. These kinds of homes are often called “fixer-uppers.” They usually sell for less money than houses that are ready to move into because they require work.
In Nigerian cities like Lagos, Abuja, and Port Harcourt, fixer-upper homes often have problems like old or damaged roofs, worn-out floors, outdated electrical wiring, leaking plumbing, or cracked walls. Sometimes, the house may have structural issues like weak foundations or termite damage. These homes might look old-fashioned or neglected and need updating to meet modern living standards.
Renovating a fixer-upper in Nigeria usually involves fixing basic problems such as repairing roofs, replacing broken windows, upgrading electrical and plumbing systems, repainting walls, and improving floors. Sometimes, bigger jobs like strengthening the foundation or redesigning parts of the house are needed.
However, renovating in Nigeria can be challenging. Finding reliable builders and good quality materials can be difficult. Prices for materials and labor can change quickly because of inflation and fuel costs. Also, delays happen often due to bad weather, power outages, or shortages of supplies. Legal issues like getting proper permits or confirming land ownership can also slow down the renovation process. The street thig issue also deserves a mention!
Financial considerations when buying a house to renovate in Nigeria
When thinking about buying a house to renovate in Nigeria, money matters are very important. Check below for some key points to help you understand the financial side:
Initial purchase price vs. move-in-ready homes
Fixer-upper houses usually cost less to buy than move-in-ready homes. This means you can get a house for a lower price but will need to spend money fixing it. Move-in-ready homes are more expensive because they are ready for you to live in without much work.
Estimating renovation costs in Nigeria
Renovation costs in Nigeria depend on what needs fixing. Common expenses include buying materials like cement, tiles, paint, and plumbing fixtures. Labor costs for skilled workers like carpenters, electricians, and plumbers also add up. For example, in Lagos, daily labor charges can range from ₦8,000 to ₦30,000 depending on the job. You may also need to pay for permits and inspections, which can cost between ₦50,000 and ₦150,000. Don’t forget extra costs like transporting materials and removing debris. Minor renovations might cost around ₦500,000 to ₦1,500,000, while bigger projects can go up to ₦10,000,000 or more.
Impact of inflation, currency fluctuations, and fuel prices
In Nigeria, prices of building materials and labor can change quickly because of inflation and changes in the value of the Naira. Fuel price increases also make transporting materials more expensive. These factors can make your renovation budget grow unexpectedly, so it’s smart to keep extra money aside for surprises.
Financing options for renovation projects
Getting money to pay for buying and renovating a house can be challenging. Some banks and mortgage lenders offer loans specifically for home renovation, but these may have strict requirements. You can also consider personal savings, borrowing from family, or using cooperative societies. It is important to plan carefully and understand the terms before taking any loan.
Potential for property value appreciation
When you buy a house to renovate, especially in big cities like Lagos, Abuja, or Port Harcourt, there is a good chance the property’s value will increase after you fix it up. Renovations can make old or damaged homes look fresh, modern, and more useful, which attracts buyers and renters willing to pay more.
For example, in Lagos, many homeowners have renovated their roofs, painted their houses, and updated their plumbing and electrical systems. These changes have made their homes more attractive and raised their market prices. In Abuja, some commercial buildings got new roofs and better drainage systems after renovation, which has helped to increase their value and reduce maintenance costs. In Port Harcourt, for example, industrial and residential properties that were once rundown have been transformed with new roofing and insulation, making them safer and more valuable.
Location plays a big role in how much a renovated house can increase in value. Houses in fast-growing neighborhoods or near new roads, markets, or business centers tend to appreciate more. For instance, areas around the newly repaired Port Harcourt Road and other developing parts of the city are seeing property prices rise because more people want to live or work there.
Risks and Challenges of Buying to Renovate
Buying a house to renovate in Nigeria can be a good idea, but it also comes with many risks and challenges you should know about before jumping in.
First, many fixer-upper homes hide serious problems you might not see at first. These hidden structural issues, like weak foundations, termite damage, or bad wiring, can lead to big unexpected repair costs. What looks like a simple fix might turn into a costly project that drains your money and patience.
Second, renovations in Nigeria often take longer than planned. Delays happen because of things like shortage of building materials, unreliable power supply, or unskilled labor. Sometimes, bad weather or difficulty getting workers to show up on time can stretch your renovation from months into years, making it hard to live in or rent out the house quickly.
Third, legal and regulatory problems can slow down or even stop your renovation. Getting the right permits for repairs or changes can be confusing and time-consuming. In some cases, unclear land ownership or disputes over titles can cause big headaches. Corruption and bribery sometimes make the process even more difficult, meaning you must be very careful and patient.
Finally, the Nigerian property market can be unpredictable. Property values may go up or down depending on the economy, government policies, or changes in demand. This means that even after spending money and time fixing the house, you might not get the price you expect when you want to sell. Also, if the area becomes less popular or overcrowded, it could be harder to rent or sell your renovated home.
Benefits of buying a house to renovate
If you are thinking about buying a house to renovate in Nigeria, there are some good reasons why it can be a smart choice. Let me share some benefits that can encourage you to go ahead with the decision below:
Lower entry cost and chance to buy in good neighborhoods
Fixer-upper houses usually cost less money than new or move-in-ready homes. This means you can buy a house in a nice area close to schools, markets, or work, which you might not afford if you were buying a brand-new home. So, buying to renovate can be a way to live in a better neighborhood without paying too much at first.
Customize and modernize the house your way
When you buy a house to fix up, you have the freedom to change things the way you want. You can choose the colors, the design, the type of floors, and even add new rooms if you like. This way, your home will match your style or what people in the market want. It is like making the house truly yours instead of just accepting what someone else built.
Build value and earn more money later
Renovating a house can increase its value. When you fix and improve the house, it becomes worth more than what you paid for it plus the renovation costs. This means you can sell it for a good profit or rent it out at a higher price. Many Nigerians use this strategy to build wealth over time by adding value to properties; you too can take advantage of this and build wealth for the future.
Help the environment by reusing instead of building new
Fixing an old house is also good for the environment. It means less waste from tearing down buildings and fewer new materials like cement and steel being used. Renovation helps reduce pollution and saves resources. So, by choosing to renovate, you are also playing a part in protecting the environment in Nigeria.In short, buying a house to renovate can save you money at the start, give you the chance to create a home you love, help you make more money in the future, and be kind to the environment.
Comparison with buying move-in-ready homes
Buying a move-in-ready home and fixing an old home have their own good and bad sides, and we will enlighten you about these to help you make the right choice.
Upfront cost differences and convenience
One big difference is the money you pay at the start. Fixer-uppers usually cost less to buy because they need work. But you must remember that you will spend extra money fixing the house. Move-in-ready homes cost more upfront because they are already in good shape and you can move in immediately without doing repairs.
If you want convenience and don’t want to spend time or money on repairs, a move-in-ready home is better. You just pay, get the keys, and start living in it. But if you don’t mind putting in effort and want to save some money at the start, a fixer-upper might be worth it.
Risk profiles and investment timelines
Buying a fixer-upper comes with more risks. You might find hidden problems like bad wiring, leaking pipes, or structural damage that can cost more to fix than you planned. Also, renovations can take a long time, so you might not be able to live in the house or rent it out quickly.
Move-in-ready homes have less risk because everything is already working well. You can move in right away or rent it out to start earning income immediately. The timeline for returns is usually shorter with move-in-ready homes.
Long-term returns and liquidity considerations
In the long run, a well-renovated fixer-upper can increase in value a lot because you add worth through your repairs and upgrades. This means you can sell it for more or get higher rent. But this depends on how well you manage the renovation and the location of the house.
Move-in-ready homes may not grow in value as much, but they offer steady returns and are easier to sell quickly because many buyers prefer homes that need no work. They are more “liquid,” meaning you can convert them to cash faster if you need to sell.
If you have time, patience, and some skills or good contractors, buying a house to renovate in Nigeria can save you money upfront and give you higher returns later. But if you want less hassle, faster move-in, and lower risk, a move-in-ready home is better choice. It all depends on your budget, goals, and how much work you are willing to put in.
Practical considerations for renovation projects in Nigeria
Some of the important things you must bear in mind when considering property renovation in Nigeria are described below:
Find a reliable contractors and manage quality
One of the biggest challenges is finding good and trustworthy builders. In Nigeria, not all contractors deliver good work, so you must take time to choose carefully. Ask for recommendations from friends or family, check previous projects, and meet with several contractors before deciding. It is also important to have a clear agreement about the quality of work expected and to visit the site regularly to check progress. Without proper supervision, some contractors may cut corners, leading to poor results or extra costs later.
Follow local building codes and regulations
Before you start renovation, you need to understand the rules in your area. Virtually all Nigerian cities have building codes that tell you what is allowed and what is not. You may need permits from local government before making big changes. Ignoring these rules can cause problems for you, like fines or even having to undo the work. It is wise to consult with a professional or visit your local building authority to know what approvals are required.
Manage renovation timelines and living arrangements
Renovations usually take longer than expected in Nigeria because of delays in getting materials, power outages, or bad weather. You should plan for these delays and be patient. Also, you should think about where you will live while the work is going on. If you already live in the house, renovations can be noisy and disruptive. You can decide to rent a place temporarily until the work is done. Planning this ahead can reduce stress and make the process smoother for you.
Impact of economic and political factors on buying a house to renovate in Nigeria
Nigeria’s economy can be unpredictable. Sometimes prices go up quickly because of inflation, which means the cost of building materials like cement, steel, and paint also rises. Since many materials are imported, when the Nigerian Naira loses value against other currencies, these materials become even more expensive. This makes renovating a house costlier than expected. At the same time, property values can go up or down depending on the economy. When the economy is strong, house prices tend to rise, but during tough times, prices may drop or stay flat. So, if you buy a house to fix up, your renovation costs and the final value of the property can be affected by how the economy is doing.
Government policies and their influence on real estate and construction
The Nigerian government plays a big role in the real estate market. Policies about land ownership, building permits, taxes, and housing finance can either help or slow down property projects. For example, when the government introduces programs to help people get mortgages or funds for housing, it can boost demand for homes, making it easier to sell or rent renovated houses. On the other hand, unclear rules, delays in approving construction permits, or sudden demolitions can create problems for those renovating houses. Also, government efforts to improve infrastructure like roads and electricity in some areas can increase property values there, benefiting renovators.
Currency and inflation effects on investment returns
The Nigerian Naira has faced significant depreciation in recent years, losing value against the US dollar and other major currencies. This makes imported renovation materials more expensive and increases overall renovation costs. Inflation also reduces the buying power of Nigerians, meaning fewer people can afford to buy or rent homes at high prices. This can slow down how quickly you sell or rent your renovated property, affecting your returns. Additionally, higher interest rates set by the Central Bank to control inflation make loans and mortgages more expensive, which can discourage buyers and increase your financing costs if you borrowed money to renovate.
Resale and rental market outlook
In cities like Lagos, Abuja, and Port Harcourt, renovated homes are becoming very popular. Many buyers and renters want homes that look modern, are safe, and have good facilities. When you fix up an old house by improving the electrical system, fixing leaks, repainting, or adding modern finishes, it can quickly attract attention. People prefer homes that are move-in ready and comfortable, so a well-renovated house stands out and sells faster than one left in poor condition.
Rental yield potential: renovated homes vs. new properties
Renovated houses can offer good rental income, sometimes even better than brand-new homes. This is because you can buy a fixer-upper at a lower price, spend money on renovation, and then charge rent that reflects the improved condition. New homes often cost much more to buy, so your rental yield van be lower. Renovated homes in good locations can attract tenants quickly, especially young professionals and families who want affordable but quality housing.
How to maximize resale value after renovation
To get the best price when you sell your renovated house, you should focus on quality and appeal. Use good materials and modern designs that suit local tastes. You should also make sure all repairs are done properly since the buyers will pay more for a home that looks fresh and has no hidden problems. In addition, you need to consider adding features that many Nigerian buyers want, like reliable water supply, security measures, and good parking space. Location matters a lot, so if your house is in an area with growing demand, your chances of selling at a good price increase.
Environmental and sustainability considerations
Renovating old houses helps reduce waste. When old buildings are torn down to make way for new ones, a lot of construction debris is created, which often ends up polluting the environment. Fixing up an existing house helps to keep these materials out of landfills and reduce the need to produce new building materials. This saves natural resources like sand, cement, and wood, which are becoming harder to find and more expensive.
Old house renovation also offers a chance to make homes more energy-efficient and eco-friendly. Many older Nigerian houses were built without considering energy-saving designs, so they usually use a lot of electricity for cooling or lighting. When you renovate, you can add features like better insulation, energy-saving windows, solar panels, or rainwater harvesting systems. These upgrades will reduce energy bills and cut down harmful emissions that contribute to climate change.
Finally, renovating supports a more sustainable way of living by preserving the character and history of neighborhoods while improving comfort and safety. It also creates jobs for local workers and encourages the use of local materials, which reduces the environmental cost of transporting goods.
Investor profiles: Who should consider buying to renovate?
Not everyone will find buying a house to renovate easy or profitable, so let’s look at the types of people who can benefit most from buying a fixer-upper. Check the list to know if you fall into the category of those who should venture into such an investment.
DIY enthusiasts
If you enjoy fixing things yourself and have some basic skills, buying a house to renovate can be very rewarding. Maybe you like painting, small repairs, or simple carpentry. Doing some work on your own can save money and give you a sense of pride in improving your home. But remember, some jobs, like electrical wiring or roof repairs are best left to professionals for safety reasons. So, if you are handy and willing to learn, this could be a great option for you.
Budget-conscious investors
For people who want to invest in property but don’t have a big budget to buy a ready-to-move-in house, fixer-uppers offer a chance to enter the market at a lower price. You buy cheaper, then spend on renovations over time. This approach requires careful planning and budgeting because renovation costs can add up, especially with rising prices of materials and labor in Nigeria. But if you manage your money well, you can increase the property’s value and make a good profit later.
Long-term holders
If you are not in a hurry to sell or rent out your property, buying to renovate can be a smart choice. Renovations take time, and sometimes unexpected problems come up. Long-term holders can afford to wait for the right moment to finish their project and sell or rent at a better price. This patience can pay off, especially in growing cities where property values tend to rise over time.
What skills and resources do you need?
To succeed in buying and renovating a house, you should have or be ready to get:
- Basic DIY skills like painting, minor repairs, and decorating.
- Good planning and budgeting ability to avoid overspending.
- Knowledge of when to hire professionals for complex work like plumbing, electrical, or roofing.
- Access to reliable contractors and quality materials in your area.
- Time and patience because renovations often take longer than expected.
When buying to renovate may not be the best idea
Buying a fixer-upper is not for everyone. It might not be worth it if:
- You don’t have enough money to cover unexpected renovation costs.
- You need a home quickly and can’t wait for repairs to finish.
- You lack the time or interest to manage a renovation project.
- You don’t have access to trustworthy builders or good materials.
- You are uncomfortable with the risks of hidden problems like structural damage or legal issues with the property.
In such cases, buying a move-in-ready home may be safer and less stressful, even if it costs more upfront.
Legal and due diligence essentials when buying a house to renovate in Nigeria
Important things to do before buying any house to renovate in Nigeria will be discussed below:
Verify land titles and ownership to avoid disputes
Before you pay for any property, you must make sure that the person selling the house truly owns it. In Nigeria, many people have faced problems because they bought land or houses with fake or unclear ownership documents. Always ask for important papers like the Certificate of Occupancy (C of O), Deed of Assignment, and Survey Plan. Then, visit the local Land Registry office where the property is located to check if these documents are real and if the property is free from any legal problems or debts. This step helps you avoid buying a property that someone else might claim later.
Importance of thorough property inspections before purchase
Buying a house to renovate means you will spend money fixing it. So, it is very important to visit the property yourself and carefully check its condition. Look out for things like damaged roofs, broken windows, bad plumbing, or cracks in the walls. Also, talk to neighbors or people living nearby to learn about the property’s history and if there are any ongoing disputes. This inspection helps you understand the real work needed and avoid surprises after you buy the house.
Understand contractual agreements with developers and contractors
When you buy a fixer-upper, you will likely need professionals like builders, electricians, and plumbers to help with renovations. Before starting work, always sign clear contracts with these contractors. The contracts should explain the work to be done, the cost, payment terms, and timelines. This protects you if the work is not done properly or on time. Also, when buying from developers, carefully read and understand the sales agreement, including any extra fees or conditions. If you are unsure, it’s a good idea to hire a lawyer who knows Nigerian property laws to help review these documents.
Conclusion
Buying a house to renovate in Nigeria can be a smart choice, but it depends on your situation and goals. If you are ready to put in time, effort, and money to fix up a property, you can get a good deal by buying a cheaper house and making it better. Renovating allows you to create a home that suits your taste and needs, and it can increase the value of the property. This means you could sell it for more or rent it out to earn extra income.
However, renovating a house in Nigeria also comes with challenges. You might face unexpected repair costs, delays, or difficulties finding good materials and trustworthy builders. Prices for materials and labor can go up quickly, and sometimes legal issues with land or permits can slow things down. So, it’s important to plan carefully, budget well, and do proper research before buying a fixer-upper.
If you want a home that is ready to live in immediately and you don’t want to deal with repairs, a move-in-ready house could be better, even if it costs more. But if you are patient and willing to work on the house, buying to renovate can be a rewarding investment in Nigeria’s growing property market. The information above is simple enough and can assist every home buyer in Nigeria, including those with years of experience in buying and renovating houses.
