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

Houses for sale: What to consider before buying

Houses for sale: What to consider before buying

The Ultimate Home Buyer’s Checklist

Thinking of buying a home? Your first home perhaps, here are the factors to consider before buying a house for sale.
Buying a house is a big deal but after the initial excitement passes, it might seem a little overwhelming. There are factors you need to take into consideration to ensure you make the best deal available to you. Below is a list of factors you can consider to make your home buying process effortless and exciting.

Find a Real Estate Agent

You’ve probably never considered this but before making a move to buy a house, getting a professional real-estate agent decreases the burden of finding the right house in a favourable location at the right price. Getting an efficient real-estate agent can save you tons of energy and time, which would have been otherwise spent tracking down information.

Even better, you can seek the services of a real-estate company, who owns or market real-estate properties. There are a good number of reputable real-estate firms you can work with here in Lagos.

Here are some tips to help you get started:

  • Choose a real-estate firm that has built a reputable brand name.
  • Choose a real-estate agent or company who’s willing to share all the information you need in detail.
  • Work with a firm or agent you’re comfortable with. Sometimes trusting your guts when it comes to choosing who to work with counts.

 

Read more: Renting versus Owning a Home: Consider the Following Factors

 

houses-for-sale

 

Get Your Finances in Order

One of the main reasons for buying a house is such a huge deal is largely due to the financial commitment required. Once you’ve decided to purchase a house, determine which mode of payment suits your budget. If you’re going for a full down payment (which is typically cheaper comparatively) bargain for the best deal possible.

Find out if there are any other fees required other than the cost stated.
If you’re opting for installment payments, get your account in order and set aside funds for prompt payment.

It’s quite common for people to borrow funds to pay for a house. Before opting for this option ensure you’ve taken into consideration the interest rates and how much the loan actually costs.
Most real estate companies offer flexible payment options for up to 12 months. Seek out options that suit your budget.

 

Also read: Why Real Estate is The Safest Investment Option In Nigeria

 

Determine the type of house you need

Let’s face it when it comes to making home buying decisions; what we want, what we need and what we can afford are three different things. First, identify what you need to make your home comfortable.

Here’s a head start:
  • Constant treated running water
  • Constant power supply
  • Security and access control
  • Proximity to the workplace, hospitals, schools, etc.
  • Is the property on a flood plain?
  • Available rooms

The list varies depending on your specific needs. Answers like, how big your family is, would determine the number of rooms you should be looking for.
Questions like, how long would you like to live in a particular area? What is your necessary level of privacy? Are you buying as a means to invest? All these and more, ensure the house you’re planning to buy has all it needs to become home for you.

 

More related content: Top ways to save and invest in real estate.

 

Title of the property

Make sure the property you’re looking to buy has the appropriate land documents. Ask for copies of the documents from your seller or realtor and make proper inquiries. Needless to say that, you shouldn’t pay for any property in Lagos without verifying the authenticity of its land documents.

 

 

Let’s Get You The Perfect Home

We understand choosing the right home means so much to you. Here’s a house you’ll absolutely love.
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.
Every aspect of LekkiVale Estate radiates a lifestyle of sheer relaxation and soft elegance, well deserving for you. From the designed buildings to our unmatched amenities offering:
• A central connection of treated running water
• 24 hours centrally generated power supply
• Well paved roads and covered drainage
• Top notch 24 hours security and access control
• Sewage treatment
• Ample parking lot
• Green areas and Kids Park
• Swimming pool
• Clubhouse

For more detailed information about getting the best real-estate deals in Lagos, call us today at 0908123456409095757575. 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 09081234564

 

Buy Land in Lagos: Top five signs you need to own Land in Lagos

Buy Land in Lagos: Top five signs you need to own Land in Lagos

Deciding when to buy land in Lagos is not the easiest decision to make. Buying land requires 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.

 

However, investing in real estate is still one of the safest long-term investment options in Nigeria. If you aren’t already thinking about buying land, here are five top signs you need to own land in Lagos.

1. You’re Nigerian
Ever heard the saying, “everyone is a Lagosian?”
Anyone can own acquire property in Lagos and if you’re Nigerian, even better. Lagos is the friendliest state to do business even if you don’t live in Lagos. In 2015, the UN projected Lagos 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 people is the ease of doing business in Lagos.

How can these numbers pay 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 buying land 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 reality is the cost of land always tend to rise in the long run. So, while you waitland gets more expensive plus you’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. This region has high growth potential. If you’re looking for a rapid turnover, here’s your chance.

 

land-flipping

 

Read more: How to get the best land deals in Nigeria.

 

3. You Have Investment Plans
Investing is the quickest way to build wealth. However, every form of investment involves risks at varying degrees. Fortunately, investing in real estate is the 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 buy land. Your main concern should be the location of the land for sale.
Buying land allows you to build equity 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 gives you 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.IIkeja, and Ikoyi, etc. currently benefit from the proceeds on their properties.
Even better, 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. You have a luxury car or two
Nigeria is the number one buyer of cars in Africa, with Lagos incubating majority of these cars. once saw a social media meme that read, “If you live 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 first year and this number increases to about 60% by the time the car is three years old. Of course, these statistics vary depending on the brandmileage 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 average 600sq meters 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 get is N5m.
See the difference?

 

 

Also read: All you need to know about the industrial developments at Ibeju-lekki

 

Got Questions? Great! We’d love to 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 0908123456409095757575 or Send us an email at info@sevicpdc.com

You can also chat with us on WhatsApp: 09095757575 09081234564

Landlord: Benefits of being a land owner

Landlord: Benefits of being a land owner

We’ve all had or have a landlord, at least most of us. Although you might not like your landlord, you must admit you need the housing services. Being a landlord isn’t as complex and time-consuming as it appears to be. Here are the top seven benefits of becoming a landlord: (more…)

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