At this point, you feel you have achieved the financial capacity to buy your parent a new home. It is like a dream come true. However, this beautiful decision may be complicated and difficult to keep up with due to the activities of omo oniles, roadside agents, fraudsters and unfriendly government policies.
There are a number of ways in which adults can assist their parents with a new home purchase. You can decide to use a mortgage scheme, pay in installments, or make outright payment. Thus, it’s important to realize the pros and cons of each approach.
Pay with a Mortgage
If you have limited income, the simplest way to help is by cosigning the mortgage. The mortgage market has really tightened their underwriting policies. For individuals without a significant level of income, it became harder to qualify for a note or get favorable terms.
The fact that so many Nigerians do not tap the mortgage opportunities in the country limits the number of homeowners in the country. Although, some mortgage schemes are unfavorable, the Lagos State Homes Ownership Mortgage Scheme, is relatively favorable especially with the new price slash by governor Ambode.
However, lenders typically combine the income of all the borrowers when determining the loan-to-value ratio. Therefore, a cosigner can make it easier to qualify for a bigger loan than a borrower might otherwise get.
Pay in Installments
You can pay a portion of the cost of buying the property, this will help you secure the property. You can have an agreement with the or the company selling the property.
You can agree on a scheme that enables you to pay in installments. You can pay every three months or every month. So if the house cost 15 million Naira, you can pay 5 million Naira at first, and spread the 10 million Naira within 3 months. However, this depends on the agreement you have with the property owner.
Make Outright Payment
This is the best and the most straightforward way to get a property for your parents. You can go online to check out properties for sale. Narrow your search down to your preferred location. You can buy a property anywhere in Nigeria by visiting www.tolet.com.ng.
Get the blessings of your parents. Buy a property today.