How Can You Get Affordable Housing In Nigeria?

In Spite of numerous schemes put together by the government, affordable housing in Nigeria remains elusive to the average citizen. Affordable in this case does not necessarily connote cheapness but instead comfortability.

Housing is one of the basic needs of man due to his desire for security, privacy and protection from negative impacts of the environment. It is one of the traditional lists of immediate needs which involves food, clothing and shelter; in which case shelter means housing. In the social life of every Nigerian, homeownership boosts one’s status in society.

A look at the affordable housing government schemes

From the year 1951 with the Urban renewal scheme down to 1991 where the National Housing Policy (NHP) was formulated, Nigeria has seen various housing schemes set up by the government. The National Housing Fund was set up in 1992 with the aim of making every Nigerian who then earned up to N3,000 per month to contribute 2.5% of his or her monthly salary.

This fund was to be managed by the Federal Mortgage Bank of Nigeria so that workers who are contributors to the fund can source money from the fund through PMIs to develop individual houses.

A few months ago, the Central Bank of Nigeria (CBN) approved over US$ 517 million as a mortgage finance facility towards the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory. This was approved as part of the program on affordable housing in Nigeria under the Economic Sustainability Plan 2020.

However, reports have made known that these affordable housing policies have not been as successful as they should, due to poor management and the segmented target of only low-income earners across the country. The reports also stated that although the National Housing Fund helps people with home buying via mortgage at an affordable interest rate. It also allows you to purchase a house that is commensurate with your income.

This is one of the reasons some people do not bother going for it. Many ‘middle class’ earners don’t find this option very attractive because the home they would probably buy is in the outskirts of Lagos or in some remote area since they give funds only according to how much you earn.

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How can you then buy a house affordably?

Get a payment structure that works for you

You are tired of paying rent and you want to buy a house, you need to know what works for you. Whether it’s private mortgage plans or the National Housing fund initiative, we know how high the interest rate can get when spread across as a long term payment plan.

This is why you need to access your salary and savings to find out which one works for you. You can also find real estate companies or agents who have flexible broken down payment structures for their properties.

Buy land

Buying or securing land is the first step in owning a house. This is a route many people take to get affordable housing in Nigeria If all you can afford at the moment is to secure a land then do that. Little by little you can then go-ahead to build the house you desire, even if it takes a long time to finish building or for the house to be complete you know you are doing so according to your pocket. The bottom line of the affordability spectrum here is to own a house.

Save up while you keep paying rent

Some people forget that whether you are paying rent to your landlord or paying a mortgage to the bank or government, you are still paying. And if at any point you do not pay any of this you get kicked out of the house either by the bank or by the landlord. This is a reason not to rush into a mortgage, instead, gather your resources wisely and buy a house when you can afford it.

Owning a house in your name is one of the greatest sources of wealth. The most common approach to measure the affordability of housing has been to consider the percentage of income that a household spends on housing expenditures. The hope however is that full-time workers will be able to get affordable housing in Nigeria. Visit propertydome.com to buy or sell your property in installment today.