True life story: How we bought our first Home!

True life story: How we bought our first Home!

Femi and Ada have been married for eight years. When they first got married, they both agreed to buy their first home in two years. Like most young couples, they spent a good part of their savings on their first baby who arrived sooner than they had planned.

Femi figured it wouldn’t be a bad idea to hold a little longer on the housing project, coupled with the fact that he was now saddled with more bills. Ada had to take a break from work for a year to take care of their baby. Their savings dwindled and by the time Ada was ready to work again, the focus was now on paying school fees for their young son.

Five years passed and Ada got pregnant again with their second baby. Femi took up a side hustle to stay afloat with all their growing expenses. Ada once again had to take a break from work. The cycle continued. They managed to keep up with everything else except their dream of buying their own home.

The idea, however, crossed Ada’s mind from time to time. She wanted a bigger kitchen, an extra room for guests and a play area for her kids. Spending time alone at home with her second baby gave her ample time to think and plan. She looked at the possibility of them buying a home upfront but, before the thought settled, she quickly ruled that out as there was no visible way to make that happen in the nearest future.

Ada wanted a house in Sangotedo; it wasn’t too far from V.I, Ikoyi and the rest of Lekki. Cost of houses in the area where relatively fair and the location was serene for raising kids.

Ada shared her concerns with Femi, sharing her findings of Sangotedo. Femi wasn’t thrilled at first but was ready to actively work towards the goal of homeownership. It meant doubling up at work and saving a lot more. Ada too opted to take on baking and making small chops in her spare time. They both agreed to drastically cut back on expenses, completely taking off the following:

  • Takeouts and eating at restaurants.
  • Friday night hangouts and drinks with the boys.
  • Buying ‘asoebi’.
  • Sold off belongings they weren’t using like their old couch that sat in a storage room.
  • Minimized her movements to the precise places to maximize fuel consumption.
  • Cut down on power and gas usage; switching off lights that weren’t used and monitoring gas consumption.

With Ada’s new food business and Femi putting in more work, it wasn’t long before Femi earned a good commission for closing a client he’d been working on. Meanwhile, Ada used most of her daily income to run their home. After six months, they made a 30% down payment on their newly finished four-bedroom house at Sangotedo.

true-life-story

Saving for a home

They opted for a mortgage loan to cover the rest of the payment for a period of five years. Of course, they could have continued saving and directing most of their income towards their housing project but they had other expenditure to worry about like school fees, health care and savings to re-invest in their respective businesses.

Read more: How to effectively transition from renting to owning a house

Their mortgage program was approved for a period of five years. They set their monthly payment at 20% of their total monthly income. Femi plans to complete the payment even before then. He’s truly grateful for the experience of putting more effort at work and saving more.

He said that the process of buying their first house has instilled a good dose of discipline in him and he wouldn’t stop putting much effort in achieving his goals.When we asked Ada what was the one thing that had driven them to achieve their goal, she said, it was taking the decision to make it happen.

In her words, “when you decide it’s time to own your home, and stay committed to that decision, everything else begins to fall into place. You come up with new ideas, you find better ways to spend money and in short, you become a better person for it.”

Since you’re here …

We’ve got the best deal for you. Buying a house is a huge decision to make. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention they cost m. Let’s narrow it down for you. LekkiVale Estate, located in the heart of Ibeju Lekki encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve:

  • A home located within the urban area of Lekki
  • 24/7 electricity and water supply
  • Ample parking space
  • A valid C of O land title document

What’s more, we’ve got all these for you at the most affordable price possible. Call in today on 09081234564, 09095757575. Send us an email at info@sevicpdc.com and let us give you the investment of a lifetime.

You can also chat with us on WhatsApp: 09095757575

So, why should you bother calling us today? …Because we understand what Home means to you.

Mortgage

Mortgage

Buying a home for your family is one of the benchmarks for success in our society. What makes buying a home harder is usually the lump sum required and the lack of knowledge of how the mortgage system works in Nigeria. Cost is the single biggest factor for the low house purchases among middle-income earners, as they would need to save for long periods to have enough money for an upfront payment. This’s where mortgages act as a better subsidy.

A mortgage lender loans a good part of the cost required to pay for a house, which you will have to pay back with interest over an agreed period of time. On the flip side, if for unforeseen circumstance reasons you’re unable to pay the mortgage bank when due, your home can be taken through a process called foreclosure.

The mortgage system is typically favourable for homeowners who don’t have sufficient cash on hand to pay for a house upfront. However, taking up a mortgage typically takes you a step closer to home ownership compared to perhaps, renting.

 

mortgage-in-nigeria

 

There are different types of mortgage loans and depending on what plan best suits your budget and the amount of payment period, you should carefully assess which is best before opting for one. Mortgage loans are characterised by their time span, usually from 5 to 20 years in Nigeria.

 

Before opting for a mortgage loan, ensure you understand the following factors:

  • Consider your budget and monthly income. It’s preferable to have a relatively stable source of income. This is to prevent overstretching yourself to keep up repayments.
  • Keep in mind other than the cost of the owning a home, you’d need to cater to additional expenses like household bills, utility bills, insurance and maintenance.
  • Mortgage lenders will usually request to see proof of your bank statement to assess your income flow and expenses, and if you have any debts. This assessment is simply to prove you can keep up with repayments plus interest rates.
  • The mortgage lender can decide to refuse to offer you a mortgage if they think you can’t afford to keep up with repayments.

How Does The Process Work?

When compared to regular loans, mortgages typically have lower interest rates. Typical mortgage interest rates in Nigeria range between 7-25%. The lender requires the potential buyer to have a certain percentage of the total amount needed for the purchase available, called equity. This percentage should range between 30-70% of the total cost of the home. Ideally, your mortgage payments shouldn’t require above 25-30% of your monthly income to enable stay afloat with other bills and engagements.

As mentioned above, the length of time required to pay back the loan is important. In most cases, the maximum period of time given is 20 years.

 

Read more: What it takes to turn your house into a Home 

 

What Documents Do You Need?

The documents needed to get your mortgage loan to approve vary from institution to institution. They include the following:

  • A comprehensive statement of account (12 months or more)
  • Employment and confirmation letter (if employed)
  • Certificate of Incorporation of business (if in business)
  • Nationally accepted means of identification
  • Utility bills
  • Application form (provided by mortgage institution)
  • Original title deed of property (To confirm that property is not in contest)

In Nigeria, taking mortgage loans is increasingly becoming popular and it’s one of the surest ways to owning your own home. However, before considering a mortgage, keep in mind the following questions:

  • Is this the right time for me to buy a house?
  • What kind of property do I need? And where?
  • Do I need to take out a mortgage?
  • Can I truly afford to buy a house on a mortgage?
  • How much do I want to borrow and for how long?
  • What are the pros and cons of taking out a mortgage compared to renting?

Also read: How to effectively transition from renting to owning a house

 

 

Since you’re here …

We’ve got the best deal for you. Buying a house is a huge decision to make. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention they cost more. Let’s narrow it down for you. LekkiVale Estate located in the heart of the Lekki Peninsula encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve:

  • A home located within the urban area of Lekki
  • 24/7 electricity and water supply
  • Ample parking space
  • A valid C of O

What’s more, we’ve got all these for you at the most affordable price possible. Call in today at 0908123456409095757575. Send us an email at info@sevicpdc.com and let us give you the investment of a lifetime. So, why should you bother calling us today? …Because we understand what Home means to you.

You can also chat with us on WhatsApp: 09095757575 09081234564

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