• Wednesday, June 12, 2024
businessday logo


Keys to success: Planning and executing your home-ownership goals in Nigeria

Home sweet home: Is your primary residential house an asset or investment?

Home-ownership is not only a status symbol in Nigeria and everywhere else around the world; it is also a form of investment with a long-term horizon that demands careful planning.

Long-term planning can help individuals overcome the challenges of gaining access to mortgage loans due to their income bracket and the fact that mortgages are not as easily accessible as they are in the western world. This paves the way towards realising the dream of owning a home, which for many people has been a lifelong goal but has been thwarted by a lack of easy access to mortgages.

In this article, I will discuss the significance of owning a property in Nigeria as well as the measures that are necessary for effective long-term planning, with the goal of assisting you in negotiating the complexities of the Nigerian real estate market.

The Significance of Having Your Own Home in Nigeria

Stability and Safety: Home ownership provides both stability and safety by making it possible to have a place that is permanently yours to call your own. It removes the possibility of receiving a notice of eviction or an increase in the monthly rent, making it possible for you to plant roots and cultivate an environment that is supportive of you and your family.

Accumulating Wealth: Becoming a homeowner in Nigeria, or anywhere in the world, is a long-term investment that has the potential to result in the accumulation of wealth. Properties in the real estate market have the ability to increase in value over time, which presents an opportunity to amass equity and create wealth. In addition, the ownership of real estate can be used as collateral for future financial undertakings, such as the funding of education or the establishment of a business.

Planning for Retirement: Having a home that you own can be a valuable asset that can be used to plan for financial security during your retirement years. This can be an important factor in the planning process for retirement. You can reduce your overall housing costs and free up more money to put towards your retirement savings if you buy your home outright or make significant reductions to your monthly mortgage payments.

Read also: The role of sleep on our personal health

Planning for Home Ownership Over the Long Term in Nigeria:

Save Early and often. Start putting money down for a down payment on a house as soon as possible by designating a certain amount of each paycheck to go towards that goal. Establish a methodical plan for savings and give some thought to investigating high-yield savings accounts or investment opportunities that provide the possibility of long-term development. When you begin saving sooner rather than later, you give yourself more time to amass the finances necessary for a down payment and other fees associated with purchasing a home.

Research Affordable Housing Schemes: Nigeria has a number of different cheap housing programmes that are designed to assist individuals in reaching their dreams of becoming homeowners. Conduct research on and investigate various projects, such as the National Housing Fund (NHF) offered by the Federal Mortgage Bank of Nigeria (FMBN), the Cooperative Mortgage Scheme, or initiatives offered by state governments. These initiatives frequently offer discounted interest rates and flexible repayment terms, making it more feasible for participants to purchase their own homes.

Consider Rent-to-Own agreements, Cooperative Housing Societies, and Seller financing:
Seller financing, rent-to-own agreements, and cooperative housing societies are some of the alternative financing options that should be considered if traditional mortgage loans are difficult to obtain. These options might provide more adaptable terms and less stringent eligibility standards, which would make it simpler to buy a house.

Consider Participating in Long-Term Investment Strategies: You should give some thought to participating in long-term investment strategies, which can help you earn additional income and develop wealth over time. Investing in stocks, mutual funds, and other assets that have the potential for capital appreciation are examples of this type of activity. Putting together a diversified investment portfolio can help you amass more financial resources to support your aspirations of becoming a homeowner.

Although gaining access to mortgage loans in Nigeria may present some hurdles, the key to overcoming these challenges and making your dream of house ownership a reality is to plan for the long term. You may negotiate the path to home ownership with determination and resiliency if you get a head start, make saving a habit, investigate affordable housing schemes, think about alternative financing possibilities, and engage in long-term investing methods.

Keep in mind that patience and endurance are absolutely necessary traits to have as you strive towards the goal of creating a safe and satisfying future in your own home. Home-ownership in Nigeria is something that can be made a reality with the right amount of meticulous planning and strategic decision-making. This will bring you stability, security, and a strong foundation for your financial future.