kelechi 
Buy now pay later empowers you to lock down the price of your desired property when you want to Buy A House In Lagos Nigeria And Pay Installmentally.
A lot of people used to ask me, Kelechi, can I pay in installments when buying real estate in Nigeria?
My answer has always been. Yes, It is possible to buy and sell real estate between private individuals using installment payments.
Buy A House In Lagos Nigeria And Pay Installmentally
In a typical real estate transaction, the buyer pays the full amount to the seller at the time of the balance settlement, and ownership is transferred upon receipt of the payment.
Also, if the buyer cannot prepare the purchase price in cash, he or she can take out a mortgage from the bank and pay the full amount with the loan.
In today’s economic situation in Nigeria, there are very few people who can come up with the purchase price of tens of millions of naira in one lump sum, so the reality is that most people purchase a property by taking out a mortgage.
[Also Read] Real Estate Appreciation In Nigeria: How To Know The 2024 Trends And Challenges
So, if the seller agrees to installment payments, is it possible to pay for the property in installments?
It is possible to use installment payment (payment of sale) even for high-value real estate transactions.
This is because the payment should be decided between the parties (principle of freedom of payment), and if the seller and buyer have no problem with the content of the installment, there is no reason for anyone to complain.
However, the biggest problem is whether the seller will agree to installment payments (installment payment).
From experience, in the overwhelming majority of cases, the seller will agree to installment payments (installment payment) when the seller and the buyer have a special relationship based on blood ties, such as parent-child or siblings, and it is difficult to do so in a relationship based on acquaintances or friends.
Therefore, it can be said that installment payments (installment payments) are more easily utilized in real estate transactions between family members than in transactions between strangers (of course, they can also be used in transactions between strangers with the seller’s consent).
In particular, in the case of a parent-child relationship, by purchasing the parent’s real estate, the child can pay a fixed amount to the parent every month, which the parent can use for living expenses.
A parent-child transaction can be made in installments (installment payment) as a regular payment method for the parent’s retirement funds.
It is extremely difficult to obtain financing for a family purchase. Consider payment in installments.
As I explained in another article, banks are very reluctant to lend money for home loans in cases of family sales, and it is almost difficult to obtain a loan.
Since it is not easy to obtain a loan, the buyer must prepare the cash, but it may be difficult to come up with cash in the tens of millions of naira.
In such a case, why not consider a method of installment payment (installment payment) for a sale between relatives as well as non-relatives?
What is an Installment Payment?
A real estate installment payment is a method of paying the purchase price in monthly or other agreed installments.
Nowadays, it is common to take out a loan when purchasing a home, but this method is used when it is difficult to obtain a mortgage, such as when a self-employed person has a low declared income or when buying and selling between relatives.
Since installment payments are not a common method, they are rarely used by real estate developers, and specialized knowledge is required to use this method.
Since there are very few real estate developers who use installment payment methods in real estate transactions, installment payments are not used very often in practice.
In fact, there are not so many real estate developers or owners who have experience with installment payments, and the reality may be that they are unaware of the usefulness of installment payments.
Buy A Home In Nigeria
1) Consider Buying an Offplan Property
If you are interested in buying a house in Lekki, Lagos or Wuse, Abuja for If you want to buy a house in Lekki, Lagos, or Wuse, Abuja, for example, you may be required to pay a lump sum upfront.
Nonetheless, you can pay in installments for residences in Lekki, Victoria Island, Ikate, and Ogudu, but you will most likely have to buy while the house is still being built.
When you buy off-plan, you can negotiate payment terms based on the project’s development pace, allowing you to spread payments over 6 to 18 months or more.
Furthermore, off-plan developments in Abuja, such as Katampe, Lifecamp, Lokogoma, and Lugbe, allow you to pay for residences in Abuja in installments.
2) Buying in an Estate That Has a Good Title Document
Most estate businesses in Lagos and Nigeria in general that sell land would at least allow for a monthly payment plan, with durations ranging from 6 to 12 months and 18 to 32 months.
Buying a full plot of land in Epe and Ibeju-Lekki may cost N450k per month, while a half plot will cost N200k per month.
While Kuje and Idu in Abuja can receive similar monthly installment payments.
Furthermore, if you don’t want to push yourself, you can discover land and houses in Mowe, Mowe-Ofada, and Ibadan with a 24-month installment plan.
Pay a down payment of N1 to N2 million and spread the balance in installments.
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3) You Should be Using A Contract of Sale
If you are interested in a ready-built house and do not want to miss out on the property, you can have a lawyer write a payment of sale and negotiate with the owner.
Essentially, the payment of sale would operate as a sales agreement between you and the property owner, allowing you to purchase the home and pay in installments. However, depending on the region, you may need to make a significant down payment to persuade the homeowner to accept your offer.
4) Mortgage Financing Can Be An Alternative
Many Nigerians living abroad are already familiar with mortgage loans, which are a simple way to purchase a home with monthly payments for up to 25 years, typically with an interest fee.
Although mortgages are available in Nigeria through several schemes such as the National Housing Fund (NHF), Family Housing Funds (FHF), National Mortgage Refinancing (NMRC), and commercial bank mortgages.
Nonetheless, obtaining a mortgage to purchase a home in Lagos or Abuja remains extremely tough, and many of these mortgages have higher restrictions for Nigerians working overseas.
Conclusion
So far, we have explained the outline of installment payments. It is a kind of transaction that has recently been recognized, but a form of real estate transaction that has existed for quite some time. In recent years, mortgage interest rates have fallen to the lowest level, making it easier to obtain a loan. However, this only applies to general transactions between different people.
In cases where the seller and buyer have a special relationship, such as in a sale between relatives, or when there are problems with the property, it is very difficult to obtain financing. In such cases, even if the seller and buyer agree to a sale, it will be virtually impossible to proceed, so in such cases, it is useful to adopt a method of payment in installments (installment payment).
At our center, we use installment payment methods (installment payments) more often in cases of sales between relatives than in cases of sales between individuals other than the person involved.
