To get a loan to build a house, you must understand that a collateral is always needed. But not everybody is comfortable with this arrangement. What becomes of you if you are unable to pay back? Let’s talk about all the means then you choose the one most suitable for you.
This is by far the most popular method people are using to get their house built, there is no fear of creditors knocking on your door and it gives a lot of rest of mind. Honestly, no matter how small your salary is, you can build a house if you set your mind towards it. There is always a case of you saving from whatever your income is. Study has showed that 30% of the moderate level of what we get monthly goes to buying very unimportant goods and junks. So you can cut unnecessary costly foods in costly restaurants. Sit down, make an inventory of wasteful spending’s and start saving 20% only of your income, no matter how small in 2 years time you will start a home of your own, whatever you are able to save will be enough to start your house. Professionals benefits most from this type, with up fronts, profit sharing and commissions amongst others.
Personal savings amongst others is the first option if you want to acquire a land and building a house.
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This is most attractive to workers that are planning to invest in Real Estate. Though it is mostly used for personal buildings, but giving honest advice from me, it is better for you a young man or woman to build it, then rent out and let the building pays for the loan back while you sit down and collect rents. Then now use the dividends to finance another project.
The National Housing Fund remains the most attractive leeway for those who desire to build with loan especially the civil servant. It is designed by the government to aid the federal Mortgage Bank of Nigeria, with less bureaucracy unlike before and it offers presently a maximum of N5m at an interest rate of 6% and a whopping 25 years of repayment tenor. This fund can be joined through any of the mortgage banks in Nigeria.
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If you understand real estate, this opportunity can turn you into a millionaire.
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This method is becoming more popular among the young workforce and a lot of cooperative housing schemes are springing out daily. It employs the same old mode of operation, only that in this case you are expected to own a home. All members pool resources together to build houses for each member in areas of choice. This is an alternative to mortgage for the low-income earners, who makes monthly minimal contribution overtime.
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Have you packed into a developing area before, which is still full of vegetation? Within 3 months what you will notice is a surge in inflow of people of that location either they are trying to secure their land or are encouraged by the moving into the location by you, and are sure of meeting neighbours to talk to, transact business or probably for security, whichever, there is always a trend of people moving into a location because somebody like you have just moved in. So, what happens? as you have more traffic, the value of properties in that area will naturally increase. So, when you are buying a land, why not make it two or more, as you build one, the other plots will appreciate in value sell them and use it to complete your resident house.
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With consolidation of Nigerian Banks, there is a lot of money now available for business transactions, so banks these days are ready to loan you money to be able to complete your building, though this process is the most difficult to choose.
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Some smart young couples are making use of this program to develop their homes stressfully. Though high yield, high risk, this is by far the best and the easiest way I can recommend to anybody when building their house. Before present problems with most of the HYIPs, there is a high yield investment program being promoted by an Oil and Gas firm in Nigeria called ‘Nospectus’, you invest N450,000 in their company and they in turn by the end of every month will be paying you N40,000 in 12 months you would have made 100% turnover, and the good thing about this company is that you can withdraw your capital of N450,000 anytime you want to. (Also, you have Club freedom among others.)
A couple grew theirs to N200,000 per month i.e., 5 slots and they build their house of choice so stressfully, imagine having N200,000 per month as an additional salary without any further effort. “Note: though I am not recommending them, I know of quite a few people in this scheme. There are a lot of HYIP’s also going on internet but you have to consult those that are already into it before you get defrauded. Less risky ones are to buy shares, bonds etc and use the profits to build your house. “My general advice is to start small”
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