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.
WORKPLACE MORTGAGE AND LOANS
This is most attractive to workers that are planning to invest in
Real Estate. Though it is mostly used for personal buildings, but in giving you
a honest advice, it would be better for you as a young man or woman to build the
house, then rent out and let the building pay back for the loan back as you collect
the rents. Then you can use the dividends to finance another project.
The National
Housing Fund remains the most attractive leeway for those who desire to build
with loans, especially the civil servants. 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.
ADVANTAGES
i. Fast completion of building
ii. The paying back period is long and it is deducted
automatically from your monthly income without you feeling the pinch because it
is usually very small.
iii. The interest rate is very low.
iv. If you understand real estate business, this opportunity can
turn you into a millionaire.
DISADVANTAGES
i. You are indebted for a very long time.
ii. Interest rates, no matter how small, will still eat into your
pocket.
iii. Sudden severance of your job may leave you in the cold
against your creditors. What if you were unable to get another job?
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