Tag: rent-to-own

  • 3,000 benefit from Lagos housing initiatives

    The Lagos State  Ministry of Housing has handed over keys to another set of 150 winners in the state’s Rent-to-Own (RTO) housing scheme.

    This brings to 650 the number of beneficiaries since its introduction by Governor Akinwunmi Ambode.  The RTO is an improvement on the former State Home Ownership Mortgage Scheme.

    Under the scheme, only a five per cent deposit is required by the allotees, while the balance is spread over a 10-year period. Hitherto, intending home owners were required to pay 30 per cent equity contribution on property allocated to them before taking delivery of same.

    This policy initiative, according to Commissioner for Housing, Gbolahan Lawal is enable residents  have decent and affordable housing.

    “The handing over of keys to another batch of 150 people, brings the number of allottees to 650 so far. What this implies is that a total number of 3,000 people have so far benefited from the scheme if calculated at an average of five persons per family. The state has about 5,008 housing units in 12 different locations across the state dedicated to the rent-to-own housing policy.

    He said the policy enables aspiring homeowners to pay five per cent of the value of the property and spread the balance over a period of 10 years.

    Lagos State Mortgage Board General Manager, Dehinde Tunwashe, explained that the allocation, and previous ones, had  been carried out in a “fair and just” manner.

    He appealed to the allottees to be prompt in paying their monthly rent, adding that this would  encourage the state government to build more houses.

    Tunwashe said it was mandatory to pay insurance premium on the policies put in place by the state government to safeguard their property against any form of disaster.He further urged the allottees to cooperate with the facility managers and ensure that the facilities in the estates are put to good use.

    Also, Lawal said to prevent its estates from degenerating into slums, the government had made it compulsory that facility managers are engaged for the management of new state-owned housing estates. Facility managers, he explained, would ensure that the estates were well-catered for.

    Other initiatives by the government to make housing  available are the Rental Housing Programme, targeted at persons with irregular income or who are unable to meet the requirement of the five per cent commitment for rent-to-own; and the Lagos Affordable Public Housing initiative (LAPH).

    LAPH is a joint venture between the government and the private investors to construct 20,000 housing units over four years.

     

  • 100 Lagos  workers get  rent-to-own houses

    100 Lagos workers get rent-to-own houses

    For some Lagos State Civil Servants, their dreams of owning houses came true yesterday.
    One hundred of them were presented keys to their states under the Government Akinwunmi Ambodes administration’s Rent-To-Own housing policy. They are the first of allottees.
    Commissioner for Housing Gbolahan Lawal, who represented the governor at the ceremony, held in the conference room of the Staff Clinic, said under the policy, the government would make housing more readily affordable and accessible to the citizenry.
    According to him, “the need to create a new face of accommodation for Lagosians especially the low and middle income earners has become imperative in view of the ever increasing population of the state.”
    Under the policy, all prospective home owners’ must do, he said, was to make five percent commitment fee, take possession and pay up the balance become the property owner in 10 years.
    He recalled that many did not believe three months ago when the governor launched the policy in Epe, Ikorodu Agbowa and Ojokoro, adding that today even the doubting Thomases have benefited from the gesture.
    The allocation, he said, would be taking place monthly in a fair and just manner, devoid of lobbying or favoritism.
    Lawal said allocation had begun in five of the 12 estates earmarked for the exercise.
    The estates are Michael Otedola in Odoragunshin, Ope; Oba Adeboruwa, Igbogbo, Ikorodu; Choice City, Agbowa; Hon. Olaitan Mustapha, Alhaja Adetoun Mustapha Apha, Ojokoro; Odo-Onosa/Ayandu Housing scheme, Agbowa, Igbogbo 2B Housing Estate, Ikorodu, Igando Gardens, Igando and Egan-Igando, Iponri scheme, Surulere, Sangotedo Scheme, Eti-Osa and Ajara Housing Scheme Badagry.
    The commissioner 20 percent of the houses in each of the rent-to-own estate have been dedicated to the rental housing programme, which is targeted at meeting the needs of the citizens who may not be interested in ownership or cannot meet the 30 percent equity contribution requirement for mortgage or five percent commitment fee for rent-to-own.
    Earlier, Lagos State Mortgage Board General Manager (GM). Dehinde Tunwashe said the selected estates under the scheme are in serene and gated communities. According to him, they have water treatment plants, adequate parking space, healthcare centre, estate management office, streetlights, recreational area and a police post.
    Mr. Bamidele Olayiwola Idowu, who was allotted a two-bedroom flat at Sir Michael Otedola Estate, thanked the government for the initiative, repudiating his earlier presupposition that the scheme was a political gimmick.
    Miss Leduwe Kikelomo Olajumoke, a beneficiary of a one-bedroom at Oba Adeboruwa Estate said she was still in shock that the scheme real.
    “I am still in shock, but very happy. This is real. I just tried by luck, but I was surprised that I was selected. This is big, it is real and transparent and a testimony that it is good to be a tax payer in Lagos”, she said.
    Mr. William Friday Nsebot, a chartered accountant from Akwa Ibom State, who was got a three-bedroom at Hon. Olaitan Mustapha Estate, said Ambode has proved that his administration “is truly all-inclusive”.
    He described the allocation process as seamless, and hailed Lagos State Homs Mortgage Board staff for being courteous.

  • ‘Rent-to-own scheme houses reasonably priced’

    The Commissioner for Housing in Lagos State, Prince Gbolahan Lawal has said the houses under the Rent-to-Own and the Rental Housing scheme are well priced, especially if the prevailing economic downturn is considered.

    Lawal spoke at the kick off of the scheme last weekend in Lagos. He  said the houses, once allocated, could not be transfered.

    At the event, Lawal, who was represented by the Deputy General Manager, Lagos State Mortgage Board, Mr. Bayowa Foresythe, noted that it was difficult for Lagosians to get a decent and affordable accommodation,  particularly in the Lagos metropolis.

    He said it was for this reason that the scheme was launched to ensure that all Lagosians, irrespective of their status, have access to decent shelter to improve the quality of life.

    He assured Lagosians of a transparent allocation, adding that they need not know anyone in the government to to apply.

    Similarly, Governor, Akinwunmi Ambode, represented by his Special Adviser on Commerce, Industry and Cooperatives, Mr. Benjamen Olabinjo, noted that the launch was a milestone in public housing. He said it was the outcome of innovation, hard work and the desire of the governmnet to improve lives.

    “The Rent-To-Own and the Rental Housing policies being launched today are my administration’s initiatives aimed at ensuring that all Lagosians irrespective of status, income and affiliations have access to decent shelter to improve quality of life,” he said.

    Ambode explained that under the  arrangement, individuals were required to pay only five per cent of the value of the unit as commitment fee and the balance is spread over 10 years. ‘’This programme allows the tenant to live on the property while paying towards ownership at a fixed rent within 10 years.

    ‘’The Rental Housing policy also allows the tenants to occupy government housing units paying monthly rent after an initial one month deposit. This policy is targeted at persons with regular source of income who may not want to participate in Rent-To-Own programme.

    To this end, the government has dedicated a total of 12 housing estates spread over the three Senatorial Districts of Lagos for the implementation of the Rent-To-Own and Rental Housing policies. The estates are as follows: Sir Michael Otedola Estate, Odoragunshin, Epe, 336 units; CHOIS City, Agbowa, 400 units; Alhaja Adetoun Mustapha Estate, Ojokoro, 32 units; Hon. Olaitan Mustapha Estate, Ojokoro, 48 units; Oba Adeboruwa Estate, Igbogbo, Ikorodu 256 units; Egan-Igando Housing Estate, Alimosho, 684 units; Igando Gardens, Igando, Alimosho 492 units; Igbogbo IIB Housing Estate, Igbogbo, Ikorodu, 360 units; Odo-Onosa, Agbowa, 661 units;  Iponri  Estate,  Iponri, Surulere, 132 units;                Sangotedo Estate, Sangotedo, Eti-Osa 594 units and Ajara Estate, Badagry, 360 units. This brings to total 4, 355 housing units available.’’

    Ambode, however, explained that the programme would commence in five of the estates. They are Sir Michael Otedola Housing Estate, Odoragunshin, Epe; CHOIS City, Agbowa; Oba Adeboruwa Estate, Igbogbo, Ikorodu; Alhaja Adetoun Mustapha Estate, Ojokoro and Hon. Olaitan Mustapha Estate, Ojokoro.

    Eighty per cent of the units in the five estates have been earmarked for Rent-to-Own, while the others are dedicated to the rental housing scheme.

  • Cedar Homes to deliver 168 units on rent-to-own

    Owning a home is the desire of every Nigerian. But given the prevailing challenges, owning one has become elusive for most people. This has continued to increase the housing deficit gap in the country. Several realtors and property developers are  trying to bridge the gap between the dream of home ownership and its reality.

    One of the firms undertaking such initiative is Messrs Reality Point Limited (RPL), an indigenous developer.

    RPL’s housing project is on the Lekki axis of Eti-Osa East Local Government Area, Lagos State. Christened “Cedar Homes”,  it was  conceptualised and designed as a haven of comfort for prospective owners, occupiers, investors and tenant-buyers. It is strategically positioned in Lekki Scheme II, Lagos. The project sits on 22,000 square metres of space and will accommodate 168 housing units.

    The frim’s Project Manager, Mr. Stephen Ajayi-James, said the project was conceived to ensure that the expectations of owners, occupiers and would-be investors were taken care of with the various housing types within the estate.

    The estate, said to have been conceived as an eco-friendly and environmentally-sustainable, gated community, offers facilities and services to foster qualitative living, better health, improved communal relationship and social engagement within the most affordable and cost effective means.

    ”Cedar Homes is an  affordable housing development, primarily aimed at providing access to quality housing solutions for middle income earners with the hope to deliver unparalleled comfortable living experience within the most affordable and cost effective means to our valued customers,” said Ajayi-James.

    According to the firm’s Managing Director, Mr. Debo Adejare, the house types being conceived are four floors of 15 blocks, each consisting of various units of flats. These will comprise studio apartments, one, two and three-bedroom apartments. Some of the three-bedroom units would be provided with maid’s room or  private family lounge.

    Adejare listed location as the first advantage offered by the scheme. This is because Cedar Homes is situated four minutes’ drive from Abraham Adesanya Estate and six minutes from Ajah round-about, and 10 minutes’ drive to Pan Atlantic University (Lagos Business School) campus, with similar  distance from Ikota Shopping Complex and the Victoria Garden City (VGC). Other strategic institutions within the vicinity include Atican Beach Resort.

    Other unique selling point of this estate is its easy accessibility to Lekki-Epe Expressway, the New Lekki Mall, the new Lekki Development Zone, which consist pipeline projects such as Lekki Free Trade Zone, Lekki Deep Sea Port, New Lekki Airport, Pan Atlantic University, Dangote Refinery, among others.

    “Proximity to other residential estates such as Atican Beach Estate, Grenadines Apartments & Terraces, Ocean Bay Estate, Lekki Gardens Estate, Lekki Pearl, Inoyo Estate, Gran Imperio’s Grand Lake Estate are other added advantage,” he said, while highlighting the value proposition to include comfort, convenience, quality and affordability.

    Adejare listed location as the first unique selling point of the estate, considering that it is just four minutes’ drive from Abraham Adesanya Estate and six minutes from Ajah round-about. “It is 10 minutes’ drive to Pan Atlantic University (Lagos Business School) campus, with similar  distance from Ikota Shopping Complex and VGC.

    The potential investor in the Cedar Homes stand to benefit from its non-encumbered title,  capital sourcing strategy, integrity of the project sponsors, design, high market absorption, project planning and delivery and pricing strategy, among others.

    Besides, prospective participants in the scheme need not worry about payment as the promoters have put in place three payment options. In the first option, which is rent-to-own, initial payment of 30 per cent deposit is required, with the balance spread over 36 months. The second option is payment of minimum initial deposit of between 20 and 30 per cent and balance spread over a period not exceeding 36 months.

    The third option is based on a mortgage facility, with payment of minimum initial deposit, followed by payment of the balance in partnership with mortgage banks for qualified prospects.

  • Firm unveils rent-to-own option

    Firm unveils rent-to-own option

    Barely one year after its formation, a real estate investment firm, Natanel Florens,  is offering high-yielding investment options to private clients in the real estate and private equity sector.

    The firm, which owns the Private Property Investors Trust (PPIT) franchise in Africa, says its scheme also offers 80 per cent on property investment over five years, irrespective of the property investment portfolio.

    Nigerians who wish to own a home without the mandatory equity deposit may have a cause to smile. This comes on the heels of a new initiative by the firm. The initiative is aimed at re-engineering the “rent-to-own” scheme which is yet to be fully entrenched in the country.

    Under the model, the company markets the properties to tenants, and subscribers benefit from the financing scheme whereby after 10 years payment, the property deeds go to the tenant without needing capital or upfront payments. All the tenants payments are made to the trust escrow account which then reimburses Bishopstrade.

    The initiative involves pairing property investment funds with potential home buyers. Natanel Florens targets consumers who are tenants and are able to pay rent but still want to own a roof over their heads. The company, which recently launched its services in the Lagos area, allows renters to lease to own a house, which is bought and paid for by investors and partners.

    With this and other initiatives, the firm plans to transform the African property landscape with innovative and affordable solutions as well as serve property owners who want to optimise their returns through its investment products.

    Experts and stakeholders in the built environment say this is ideal given the increasing inflation and escalating home prices which have made home purchase extremely difficult for low and middle class households. This is why the initiative from Natanel Florens Limited has received commendation.

    According to the firm’s Executive Director, Business Services, Mr. Yinka Daramola, the PPIT is a risk-free, wealth creation, property equity release/property development scheme franchised by Bishopstrade of Mauritius.

    This franchise, he further explained, allows property owners to invest and optimise returns by participating in the growing property market across Africa with or without investing cash.

    “We will address the lack of supply/market demand for affordable housing. Natanel Folrens has started identifying existing property or landowners who will pledge their property title deeds to a trust created and managed by UBA Trustees Limited and Union Trustees Limited,” Daramola said, adding that owners would continue to receive their income.

    He said the trust would pool and collateralise the property or land deeds to secure funding through Bishopstrade and benefit from the trusts profits generated.

    He explained that the PPIT franchise is a tested model. “The underlining methodology of using trusts deed to unlock equity value for housing acquisition is fully operational in over 21 states in United States and the concept of paying rent to own a house is also a tested concept.

    “Five years technical support from Bishopstrade will ensure smooth implementation of the franchise, particularly as regards development to fit into existing rental rates. It is almost zero risk, safe and protects property owners or investors through the use of trustees. Property legal documents even though transferred to the pool, are in safe custody of the trustees.”

    Natanel Florens’ has launched the scheme in several estates in Lagos. The scheme is in its second phase.

  • LagosHOMS: Allottees to smile as rent-to-own scheme set for roll-out

    LagosHOMS: Allottees to smile as rent-to-own scheme set for roll-out

    The lull in the delivery of housing units under the Lagos Home Ownership Mortgage Scheme to allottees may be over very soon. The delay may not be unconnected with the change in government and the re-engineering of government operations going on in the state. Now, in furtherance of empowering more residents to own houses, the state is set to roll out a rent-to-own scheme, raising the hope of millions of Lagosians, writes MUYIWA LUCAS.

    In Abraham Maslow’s hierarchy of needs, shelter comes second after food. This is why no government interested in the welfare of its people toil with accommodation for its citizens.

    The Lagos State government, aware of the enormous pressure this constitute, has through various schemes tried to ameliorate the sufferings of the people in this regard. One of such initiatives is its Lagos Home Ownership Mortgage Scheme (LagosHOMS), launched toward the end of the last administration.

    But the continued pressure on the state government to deliver on the scheme has been slowed down. This is because of the change in government and the restructuring of government business. But last week, the Permanent Secretary, Ministry of Housing, Mr. Olatunji Odunlami, in a meeting with allotees of Mushin, Igando and Sangotedo schemes, assured of the renewed efforts to deliver the houses on schedule.

    Odunlami appealed to the allottees be patient promising that government is determined to deliver quality and well finished houses to the allottees. He blamed the electioneering period which usually affects government business and the reengineering of government business at this period, as the cause of the delay in handing over units in the Mushin scheme, assuring that the allottees will get their house keys by this month end.

     

    The delay

    According to Odunlami, the delay in the delivery of the houses was due to the state government’s afforts at streamlining the approach to providing services to residents.

    He said: “The government is trying to reengineer itself to serve the people better. Those houses ought to have been completed and delivered because the Mushin project is already at 95 per cent but the estate will be completed and keys handed over to the allotees at the end of this month. “The governor has given a mandate to the ministry to do a review of all the ongoing housing estates under the scheme to help in completing all the outstanding.”

     

    Allottees demand

    At the meeting with the state government, the allottees appealed to the government to look into their demands and request, especially since they were supposed to have taken possession of the units since December last year.  They demanded that government should refund rents already paid by allottees to their landlords from December last year to the time they will get their allocation.

    Responding to the demand, Odunlami explained that whether government would pay them the rent that is owed, will involve dialogue.

    “We can keep talking and definitely, government will do what it can do because these are our people. Whatever they have asked and whatever is possible is what we are going to do. Some of them may be saying they want to take back their money. We don’t want them to do that because we have committed to them.

    “But if somebody is insisting that he wants to take his money, maybe he thinks his money has been spent, then they would be asked to come and pick up their money. Government has committed that they look; we are going to deliver to you, as far as it is a commitment of the government, then people should hold on to it. Like I was discussing with someone that even if someone wants to take his money, today-that let me come my money temporarily, we won’t withdraw the allocation. So when he is done, bring back your money and pay it to us. It is just to show your commitment and that is why you are paying. If you don’t do that and then you don’t it on time, then you will have issues at the end of the day.”

     

    Rent-to-own scheme

    Odunlami said to further provide housing for Lagosians, the state government will soon commence a rent-to-own scheme under the Homeownership Mortgage Scheme. He explained that modalities were being worked out to ensure its smooth take off. The scheme was initiated by former governor Babatunde Fashola, to encourage residents to participate in the state’s housing scheme aimed at reducing shortage of homes. He said  under the scheme, those who cannot afford the equity for an outright purchase of a house will pay a rent for a specific period, which will go towards offsetting the cost of the house.

    This, he further explained, is part of government’s efforts aimed at expanding the home ownership schemes as much as possible for people. “For government to bring out a policy, we have to think about it critically; consider the entire element involved vis-a-vis the people for whom you are planning the programme. We are in the process now; we are working out the number to see what it comes to, based on our yardstick which is usually the public servants whom we can easily track. The private sector can also key into the scheme,” Odunlami said.

     

    Other schemes

    The Sangotedo and Igando schemes, the Permanent Secretary assured, would be completed in phases and done simultaneously. The permanent secretary said all previous agreements reached in respect of the houses would be implemented.

    “We will continue to work simultaneously on the Sangotedo and Igandu schemes, Sangotedo is 60 per cent completed,

    “Look at Anthony Enahoro Estate in Ogba; all its facilities are in place; that estate is connected; they have transformer there, that’s what they are using now. The only thing that they were talking about was the issue of alternative power supply. I think a lot of people felt that alternative power is a responsibility of government, it is not.

     

    Infrastructure, maintenance

    An allottee under the Mushin scheme, Mr. Dotun Coker, appealed to the state government to address the issue of power supply to the estate and others. To this end, Odunlami explained that the estates would soon be connected to the national grid as generating sets would not be allowed under the scheme.

    Besides, the state government would engage facility managers from the private sector to manage the estates. “There is a need for coordinated approach to maintenance and facility managers will be employed. The government is not set to manage the estates, it will provide the necessary wherewithal and allow the private sector to run it,” he clarified.

    In estates such as Anthony Enahoro in Ogba, Odunlami said he is aware of the issue of alternative power supply. He disclosed that though everybody wants to use generator, but for health and other reasons, that will not be possible. “We don’t allow people to bring in individual generator. You won’t be able to control it. That is why the best thing to do is to bring what is readily available, a big generator.      But the running of it is the responsibility of the residents because they are the ones consuming it; that is what we are working on now,” he said.