In order to get a loan to build a house, you must understand that collateral
is always needed, but not everybody is comfortable with this arrangement. What becomes
of you if you are unable to pay back?
Now, let us talk about all the means available for you through
which you can finance your building project, and then, you can choose the one that
is most suitable for you.
THRIFTS AND COOPERATIVES’ HOUSING SCHEMES
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 at the end of it.
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.
ADVANTAGES
i. Just as in mortgage loans, fast completion because of readily
available funds.
ii. At times members purchase large expanse of land and divide
between members which is more comparatively cheap. They get professionals to do
the projects in large volume, and the professionals in turn charge less because
of large numbers of jobs. Housing cost can be reduced by 25% with this method.
iii. Encourages other mutual benefits and promote friendliness.
DISADVANTAGES
i. It definitely goes without saying that the cooperative society
of choice must be well researched and thoroughly investigated to ascertain the
commitment and integrity of its members. Some members can decide to default and
this may lead to the collapse of the cooperative club.
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