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 homeownerswho 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.
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.
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
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?
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 09081234564, 09095757575. Send us an email at firstname.lastname@example.org 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.
For a first time home buyer, it might seem a little complicated buying your first house. Let’s face it, it can be tough out here sometimes. You have to deal with rush hour, long hours at work, school, meeting deadlines, achieving goals, dealing with colleagues, bosses and the many other factors totally out of your control. The one place in the world you can truly call yours is your home.
Tell me about the home of your dreams…
Studies show that the environment you live in greatly affects your well-being and longevity. Our homes reveal our true personalities. From the colour of the walls we choose to the texture of the sofa we sit on. However, you don’t need a study material to explain the joy that comes from owning a house, your own home!
Do you see your home as a sanctuary and a harbour of joyful of memories? Let’s help you find out.
Comfort: First off, your house is a familiar space. Although joy, peace and happiness cannot be bought, you can certainly buy comfort and you should. Imagine having 24/7 electricity, constant supply of treated running water and ample parking space, and the freedom to revel the beauty of rich horticulture.
Identity: My cousin recently got herself a two-bedroom apartment. She instantly transformed her bedroom into a haven colour. She even painted her ceiling purple. She explained there’s an amazing feeling that comes with buying a house. A place you can transform to suit your taste without having to explain yourself to anyone.
Security: One of the few things you can guarantee yourself and your family is having a safe place to lay your head every night. You and your family deserve security, if not, why even bother working so hard? Your own bed is usually always the best of all. If you’ve ever travelled, you can tell the agony that comes from sleeping on a bed that’s not yours. For me, my bed is one of my best places on earth.
Happiness: You cannot buy happiness, literally. But, you can buy a beautiful apartment, where you can be yourself and have your family and friends over. Home is where you can create memories that will last a lifetime. Home is a happy place!
Here’s a deal you shouldn’t say no to. Buying a house is a huge decision. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention the cost.
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 title
What’s more, we’ve got all these for you at the most affordable price possible. So, why should you bother calling us today? Because we understand what Home means to you.
Deciding when to buy land in Lagos is not the easiest decision to make.Buyinglandrequires a huge financial commitment which appreciates after a number of years. With the current economic downturn in Nigeria, investing in real estate isn’t the most practical option.
1. You’re Nigerian Ever heard the saying, “everyone is a Lagosian?” Anyone can ownacquireproperty in Lagos and if you’re Nigerian, evenbetter.Lagosis the friendliest state to do business even if you don’t live in Lagos. In 2015, the UN projectedLagos to have an annual growth rate of 6-8% per annum, making her the 11th Mega City in the World. There’s more, statistics from the Nigeria Immigration Service (NIS) indicated that the number of foreigners that come into the country is more than those that left the country within the last five years. A more detailed report stated that 86 people migrate to Lagos every hour. Of course, the explicable reason for this gross influx of peopleis the ease of doing business in Lagos.
How can these numberspay you? As a landowner in Lagos, your land appreciates in values twice as much than any other state in Nigeria. Areas like Ikoyi, Ibeju-lekki and its environs reap even higher value appreciation.
2. You Have Money in Your Savings Account
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.“ – Robert G. Allen
While buyingland is a huge financial commitment, it pays enormously in the long run. It might seem a clever idea to hold on until you’ve saved enough but, the realityis the cost of land always tend to rise in the long run.So, while youwait, landgets more expensive plusyou’d have to factor in inflation rates.
What does this mean to you? You can start with what you have right now to get your own land. You don’t necessarily need to start with the extremely high-end lands. You begin with growing outskirts like the Ibeju-Lekki region. Thisregionhas high growth potential. If you’re looking for a rapid turnover, here’s your chance.
3. You Have Investment Plans Investingis the quickest way to buildwealth. However, every form of investmentinvolvesrisks at varyingdegrees. Fortunately, investing in real estate isthe safest investment option in Nigeria. The best part is, anyone can invest in real estate. You don’t have to be a land expert to buyland. Your main concern should be the location of the land for sale. Buyingland allows you to buildequity in invaluable assets, which can be sold for cash,used as collateral or used to fund other projects. Once you’ve found suitable land for sale with valid land documents, make the move!
4. You Need A Retirement Plan As you get older, you’d need a steady flow of income. Being a landlord in Lagos givesyou this much needed financial leverage. The cost of housing in Lagos is one of the most expensive in West Africa. Frequent spikes in rents are triggered by the high demand for houses and land.
Most influential families with properties in V.I, Ikeja, and Ikoyi, etc. currently benefit from the proceeds on their properties. Evenbetter, it serves as an incredible way of passing something on to your children.Let’s just say, unless you’ve mapped out or hoarded for yourselves the absolute retirement fund, you should consider venturing into property acquisition.
5. Youhave a luxury car or two Nigeria is the number one buyer of cars in Africa, with Lagos incubating majority of these cars.I once saw a social media meme that read, “If youlive in Lagos, you’d think a Range Rover is N 250, 000.” If you can afford a luxury car then, you can afford to buy landed property and you should.
Quick math: The depreciation value of an average brand-new car is up to 40% by the end of its firstyear and this number increases to about 60% by the time the caris three years old. Of course, these statisticsvary depending on the brand, mileage and other factors. Let’s compare this to buying a plot of land at Ibeju-Lekki.(I continually mention this region due to its high rate of value appreciation.)
Three years ago, an average600sqmeters with a C of O was sold at 2.8 million. Last year, this price went up to N3.5m and today, the lowest you’d getisN5m. See the difference?
Got Questions? Great! We’d loveto help Call us today to find out more about investing in real estate in Nigeria. You can call us right now to book a land inspection at 09081234564, 09095757575 or Send us an email at email@example.com
Real estate development revolves around prime locations. Almost every aspect of land for sale can be changed except where’s it’s located. Location determines the price of a property.
For instance, you can have identical buildings, one located at Egbeda and the other located at Banana Island. Both houses built using the same materials and design will command different prices. The house located at Banana Island would cost as much as four times more than the house located at Egbeda.
Factors to consider in determining the right location to buy property
As an investor, you should always consider the present and the future when making investment decisions. For instance, an area that appears to be of enormous financial value now, might not be the case in the next five years or ten years. Just like a disregarded area now might explode in five years. However, in both cases, there are several forecasting determinants like the following:
Would there be access to basic amenities on the land for sale?
The concept of sustainable development leans toward the availability of constant electricity, water supply, security, and well-paved roads. Look out for areas that have access to water, electricity supply and security. All these are the basis for economic growth without which, sustainable growth may be limited. Long-term real-estate developments are directly associated with and dependent on the availability of these variables.
The value of land for sale is correlated with the social class of people living within the area. Going back to our comparison of Egbeda and Banana Island: Egbeda is predominantly made up of low to middle-class income earners while Banana Island is inhabited by predominantly high-income earners. This social and economic disparity influences the price of both properties. In urban areas, town planning decisions largely depend on ‘who’s’ moving into or living in the area. As minimal as it sounds, it is extremely important to consider who your ‘neighbour’ is when buying land.
Is it close to major roads?
Access to the land via paved road is crucial. When it comes to buying land, convenience is everything. Areas located close to a major highway invariably attract sustainable development and thus high ROI on real-estate investments.
What is the official title on the land?
This is perhaps the most critical factor on this list. Even if a plot of land possesses all the above factors, if the land for sale doesn’t have a valid C of O or Governor’s consent, it’s best to avoid the land for sale. There are different land titles and each land title influences the price and ownership status of a property.
For instance, two plots of land located in the same region will command two different prices if they have different land titles. Suppose the first plot of land title is excision in process and the second plot has a C of O. The second plot would likely cost twice and in some cases three times the price of the first land. The reason is, a C of O land title guarantees ownership and secures real-estate investments.
Every once in a while, a fantastic opportunity for real estate investing like the Ibeju-Lekki area presents itself. Ibeju-Lekki has attracted massive industrial investments like the Dangote Refinery, The Deep Seaport, The New International Airport, The Fourth Mainland Bridge, etc. However, amidst all the buzz and rush to this region, there are severe cases of fraudulent land sales. If you’re not careful, you might lose your money by buying land you should avoid.
Firstly, most of the land available in this region do not have proper land titles. The Ibeju-Lekki area has been marked by the government as a growing urban zone and thus, most of the region legally belongs to the government. The common land title is the excision in progress title, which gives you a 50/50 chance of actually OWNING the land. While, A Certificate of Occupancy (C of O) protects you from all these uncertainties, and you’re assured of 100% ownership.
LekkiVale Estate offers you the BEST deal available in Ibeju-Lekki today, offering you the following:
LekkiVale Estate has a valid C of O
Flexible Payment Plans for up to 12 months.
Strategically located by the Lekki-Epe expressway, opposite the proposed New Airport.
LekkiVale Estate offers you FREE bespoke architectural plans worth up to N250,000 to choose from.
Ibeju-Lekki is the fastest growing commercial and residential hub located in the Epe Division of Lagos State, Nigeria. Ibeju-Lekki is undoubtedly one of the hottest locations to invest in Lagos. Here are our top 10 benefits for moving into Ibeju-Lekki:
1. Beautiful landscapes and Amazing beaches
Ibeju-Lekki is home to one of Nigeria’s most palm-fringed beaches. Its beaches, landscapes, and lagoons make this area a prime tourist spot. Most of the indigenous people make a living from fishing. It’s quite common to see children swimming in the ocean or the grown-up’s cozying to a bowl of special fish soup locally called ‘ Imooyo’.
Ibeju-Lekki offers the perfect escape from the rowdy, crowded parts of Lagos. To top it all, LekkiVale Estate strategically located in Ibeju-lekki offers you just the perfect home; allowing you to explore and experience a better work-life balance, access to great outdoor activities and cheaper living costs.
2. The convenience of Well Paved Roads
Most of Ibeju-Lekki is connected to Lekki and other areas of Lagos by the Lekki-Epe expressway. It’s easy to move around Ibeju-Lekki using public transportation or a private vehicle. LekkiVale Estate is located along the Lekki-Epe expressway allowing you easy access. It takes approximately 45 minutes to get to LekkiVale Estate from Lekki phase one.
3. Endless Entertainment Options (Even on Weekdays)
Ibeju-lekki is a growing town and has attracted a good number of hotels, resorts, and lounges. This budding town offers you a wide array of fun activities. You can visit the white-sandy Eleko beach or give your family a treat at Funtopia, Tickle Bay, Omu Resort, La Tropicana, and many others. There’s something for everyone and if you love fresh fish then, you should definitely reside here.
In addition, LekkiVale Estate offers for you and your entire family fun outdoor activities like a tennis ball court, basketball court, swimming pool, and a clubhouse.
Ibeju-Lekki is home to mouth-watering seafood cuisine on this side of the West. As a new resident, your taste buds would be wowed. Ever had the real fisherman’s soup? Keep your fingers crossed.
Several shopping complexes are located across Ibeju-Lekki to cater to the shopping needs of the residents. Shoprite, as well as a number of other multinational retailers, are currently under construction to cater to the anticipated 800, 000 people expected to move into Ibeju-Lekki by 2020. Just to add, the community is every mother’s dream, they have the cheapest fresh foods.
5. Low Crime Rate
Ibeju-Lekki has lower crime rates compared to other areas of Lagos. The possibility of robbery and other crimes are relatively low. Life on this side of town is more peaceful and generally calm. If you intend on raising a family in a serene and tranquillity, then this is the pristine region for you.
6. Less Crowded
Ibeju-lekki is spread across 455km2 (176 sq mi) and has an estimated population (2006) of 117,481. This means you wouldn’t have to deal with all the congestion that comes with living in crowded areas. LekkiVale Estate offers you and your family ample parking space and a large backyard, where your kids can play in the sun. You can say goodbye to neighbour squabbles over parking space.
7. Better Job Opportunities
Ibeju Lekki has attracted massive industrial projects like the Dangote refinery and fertilizer plant at the Lekki Free Zone area, a petrochemical and power plant, a deep-sea port, the fourth mainland bridge, the New International Airport, a blossoming tourism sector, and even the Pan-African University all make this area the new commercial hub of Lagos.
Ibeju-Lekki is also one of the locations for the Lagos Smart City deal with Dubai. With the actualization of this blueprint, this region would become a central hub for business, manufacturing, warehousing, and logistics and will create many job opportunities.