How To Finance Your Real Estate Investment in Nigeria

The core highlights in this article are

• Investing in Property in Nigeria
• Financing your property in Nigeria
• Mortgages in Nigeria

Investing in real estate in Nigeria offers exciting prospects, but successful ventures start with sound financial strategies. Whether you’re a non-citizen eyeing upscale properties or affordable housing in Nigeria, or a citizen trying to pay monthly for a house, understanding your financing options is crucial. Let’s explore how to finance your property in Nigeria effectively, ensuring you make informed decisions that pave the way for a prosperous future.

Exploring Mortgage Options:

In Nigeria Seso Global has worked closely with Imperial Homes Mortgage Bank Ltd to create a similar mortgage product that simplifies the mortgage application for people trying to finance property in Nigeria by making it digital. Imperial Homes Mortgage Bank Limited is a Mortgage Bank duly licensed by the Central Bank of Nigeria to undertake mortgage banking and related services. The company’s operations and business philosophy are based on the cardinal principles of Customer Focus, Customer Service and Total Quality Management.  The Imperial Homes mortgage product will allow clients to view thousands of prime and vetted properties in Nigeria, and apply for mortgages of up to 15 years at 22.5% interest rate on selected properties from the most elite property developers in Nigeria.

Self-Financing, Crowdfunding, and Loans

Beyond mortgages, explore self-financing, crowdfunding, and loans tailored to your investment needs. These financing avenues offer flexibility and can cater to various property investment scenarios. 

1. Savings: In savings, you have a certain amount of money set aside for investment in real estate in the future. Investing in property in Nigeria demands a high degree of financial discipline when saving. Whether you want to buy a beach house or buy land in Nigeria, you must begin with a comprehensive audit of your personal or household finances. This step provides clarity on your readiness for property investment. Consider establishing an emergency savings account with three to six months of living expenses to handle unexpected costs. Savings play a crucial role in real estate investment. It involves setting aside a specific amount of money over time to achieve a desired investment target.
2. Joint Ventures: Joint ventures involve two or more business partners pooling their resources and expertise to reach a certain goal. These individuals share common real estate goals, dreams, and aspirations. Additionally, the risks and rewards of the property investment are also shared. Family and friends too can utilize the “joint venture” approach when investing in property.

3. Bank Loan: Loans can be used as startup capital during the investment period of the real estate property. The property itself may be used as a security for the loan. Furthermore, commercial real estate loans can be used to purchase or refurbish a commercial property. These loans have a specified interest attached to them. 

Real Estate Investment Trusts (REITs)

If you prefer a more passive investment approach, consider Real Estate Investment Trusts (REITs). These function like mutual funds but allow you to invest in income-producing properties. They offer diversification without the direct management of properties.

House Hacking

House Hacking involves living in a property that generates income, like a duplex or house with additional rentable space. By renting part of your residence, you reduce total housing costs and learn the landlord business.

Government-Backed Financing Options

Various African governments offer government-backed financing options, including subsidies, tax breaks, and initiatives to support real estate investment. These aim to encourage investment in affordable housing, a critical issue in many African countries. These include initiatives such as the Nigeria National Housing Fund (NHF) and the Diaspora NHF Mortgage

Seso Global Deal Room Deal Room

Seso Global, in collaboration with Africa Land Developers (ALD),developed a groundbreaking financing platform called the Deal Room. The platform offers an exclusive opportunity to connect with vetted property developments and invest in leading projects. Launching first in Ghana and expanding to Nigeria, this platform will simplify real estate investment in a way that drives significant growth in property supply and demand in major African property markets.

As Africa’s real estate market continues to evolve, financing options are becoming more accessible and diverse. By aligning your investment goals with the right financing strategy, you can seize the exciting opportunities this burgeoning market has to offer.

About Seso

Seso Global has established itself as Africa’s most trusted property app,  by providing a one-stop-shop for property buyers and creating a unique ecosystem of African real estate services. The Seso Global app has been called the Zillow of Africa because it is a comprehensive digital real estate transactions marketplace. It offers investors and home buyers a diverse range of properties for sale,  real estate services and professional service providers. Using the power of proptech, Seso Global guarantees a secure and efficient end-to-end property purchasing experience along the real estate value chain. This allows customers to Buy African properties with trust.  With Seso Global, you can effortlessly purchase affordable properties or secure mortgages in Ghana and Nigeria online. Contact Seso Global today and embark on your investment journey the right way.