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Pragmatic, Previs launch new site, services schemes

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An illustration of the proposed apartment


Ahead of the Nigerian Independence celebration, two property firms have unfolded a new site and services schemes to attract prospective homeowners.While Previs Developments created a new product called Rent-to-Own Land (RTOL), Pragmatic Homes reduced the prices of its plots in Berry Court estates.

The Previs product is a modification of its rent-to-own home model, which the firm claims is not sustainable in Nigeria real estate sector.Managing Director, Previs Developments, Peter Coker noted that despite the seeming simplicity of this model, a careful study of the offers in the market now, shows that the absence of mortgage financing has significantly limited the number of homes that can be delivered using the rent-to-own scheme.

Defined as a type of legally documented transaction under which tangible property, such as land or a house is leased in exchange for a monthly, quarterly or annual payment, with the option to purchase at some point during the agreement, Peter Coker, said the model cannot work without access to bulk funds.

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He stressed that the new product will cater for Nigeria’s underserved middle market. “The logic is simple: without access to bulk funds, aspiring property owners must approach their home ownership in milestones – land first. Getting land is where the journey starts for most homeowners.

“Our properties under the RTOL scheme are strategically located at Posi Lawore, while subscribers under the scheme are to enjoy up to 200 per cent capital appreciation because the estates are in developing areas which are receiving focused attention from the government”, he said Previs Marketing and Communications Lead, Tolulope Olorundero lamented the increasing number of residential houses being transformed to office spaces on a daily basis.

“This invariably changes the dynamics to the living conditions and may affect property usage and pricing”, Olorundero stated. Meanwhile, Pragmatic homes is giving out a 10 per cent discount on its 600 square metres located at Sagamu – interchange, where a groundbreaking has been scheduled later in the month. Other estates are in Isheri-OPIC and Sangotedo.

According to the Chairman, Pragmatic Homes, Lekan Awonusi, “For our promo, we are giving out land, to our customers; we prefer to give an extra plot to help you gain and have more return on investment, unlike others that will give either a bag of rice, or a live chicken as bonus.”

Awonusi said that all their schemes are serviced plots and what stands it out is the development that comes around the sites. “When others sell plots of land, in another 10 years, you may not be able to develop them, but all our locations, in another six months, you can start developing and if you are not living there, then you are getting return on investment.”

He added that why they give allocation as soon as the first installment payment is made is to ensure that the allotee becomes responsible to meeting up with the demands of the land and the company. “When marketing a product, what a lot of people do is that they clear the site to show they are real, but then as time goes on, the area is overtaken by bushes and it feels like nothing is going on in the land, hence our decision on allocation.”


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