REIC provides actionable insight on affordable housing information regarding building master plans and working policies that have been applied to countries with similar demographics as Nigeria. Tapping into our wealth of knowledge on housing finance and our extensive research experience, we can demonstrate how affordable housing can be profitable in the long term. State governments and private investors will benefit from our experience and start using REIC as a resource tool for realistic policies and as a guide to taking advantage of new developments in real estate market. REIC will also inform government contractors on financial structuring options for housing development projects.
Owning a house is a symbol of both economic and social status in a country like Nigeria where 85% of the populace lived in rented apartments as at 2010 (Vanguard NewsPaper, 2011). Efforts geared towards providing affordable housing have been made in the past. Hopes were raised when on the 31st of July, 2014 when Nigeria launched its first 10,000 mortgages for affordable homes scheme and the Nigerian Mortgage Refinancing Company (NMRC) was set up consequently as a refinancing vehicle to provide mortgage lenders with increased access to long term funds where commercial banks had failed. Financing housing tenure of up to twenty years was a major deliverable of this scheme.
The 10,000 mortgages scheme has been marred by inconsistency in government policies and in the minds of the Nigerian people; the scheme might be gradually becoming a thing of the past.
A number of mortgage schemes have been initiated by individual state governments in an attempt to close the housing shortage gap. However, there is little awareness on the part of the public on available mortgage products they can take advantage of. The idea of approaching a bank for loan is usually met with scepticism and a large majority do not have complete knowledge of how mortgage works. REIC information center is focused on deepening the individual’s understanding of mortgage financing and also educating people on various schemes provided by their respective state governments, banks and microfinance firms.
LagosHoms, a Lagos state home ownership initiative, created to encourage and support home ownership of First-Time buyer residents of Lagos State to purchase decent homes at a tenure of 10 years, interest rate of 9.5% and a 30% down payment. Homes are priced from N4.1million for a one-bedroom apartment to N20.4 million for a 3-bedroom luxury apartment. At the federal level, the Federal Mortgage Bank Nigeria, FMBN, demands that equity contribution for housing loan ranges from 10% to 30% for loan amounts N5M and N15M respectively. Equity contribution set for loan amounts are progressive and not set at a flat rate like Lagos Homes Scheme which is 30%. The interest rate charged by the FMBN is not more than 6% and maximum tenure for FMBN loans is also for 20 years.
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