21/02/2022
https://www.facebook.com/453819118061118/posts/4543587032417619/?sfnsn=scwspmo
WHY MANY NIGERIANS CANNOT OWN A HOME?
In 2014, Okonjo-Iweala suggests that at least 750,000 residential units are needed annually for the next twenty years to reduce the housing shortage in Nigeria!
But the question is, even if these houses are made available in real terms, how many Nigerians can afford them?
The following are some of the reasons why the average Nigerian cannot own a home:
1. Access to Land:
By virtue of the Land Use Act, the governor of every state is in custody of lands and this is what gave rise to the fact that after acquisition of land with indigenous owners, we all still have to approach the State to obtain title for such land. This process for private housing developers like Perfection Real Estate Group can be very cumbersome and doesn't come cheap, so therefore such costs forms over 30% of the components of the cost of housing and thus passed on to the final home buyers.
2. There are no enabling laws to protect and provide incentives to private housing developers like Perfection Real Estate Group to produce mass housing at affordable cost to the average Nigerian because of the hostile business environment and the high cost of doing business generally.
3. Inconsistency in government policies on housing. There are often no continuity of policies from one administration to another and in one way or the other this affects confidence on the part of investors who could have complimented the effort of government on housing Nigerians.
4. The economic power of the average Nigerian is also getting worse off year in year out! There are not enough disposable income that can be channeled towards financing mortgages for a home.
5. Increase in the cost of building materials like cement, iron, granite, sand, paints and other vital materials are not making affordable housing delivery possible as it should. Also, most of the building materials for finishing are mostly imported and affected by high cost of the dollar to the naira.
6. Services of experts such as Architects, Engineers, Quantity surveyors etc also forms a part of the costs of housing which we cannot afford to neglect in the process of housing delivery.
7. Finance issues:
Real estate development is a financing game on the part of housing developers and the home buyer. In Nigeria, access to finance for housing development either comes at a very high cost or very cumbersome to access and therefore only the highest bidders can access finance on both side of the demand and supply of housing.
8. Many Nigerians are still banking on the government to provide housing for the "common man" as commonly said but the reality of the Nigerian situation is that government alone can never solve the housing problems in our country today. The Government must have to provide the enabling business environment for private mass housing developers, financial institutions like the mortgages, private equity financing and local producers of building materials in order to greatly compliment government effort and significantly bring down the cost of housing delivery which will go a very long way in making millions of Nigerians pay for their own homes.
At Perfection Real Estate Group, we are aware of the fact that it is not as easy for the average Nigerian to become a home owner but we have made things as easy and simple as possible for you to embark your journey to become a home owner.
Would you like to know how you can embark on your own journey to home ownership with Perfection Real Estate Group? Kindly drop your contact in the link below👇
www.perfectionrealestategroup.com/housing-form
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