To get a loan to build a house, you must understand that collateral is always needed. But not everyone is comfortable with this arrangement.

What happens to you if you can’t pay? Let’s talk about all the media, and then choose the one that’s right for you.

1. PERSONAL SAVINGS

This is by far the most popular method people are using to build their home, there is no fear of creditors knocking on your door and it gives you a lot of peace of mind.

Honestly, no matter how small your salary is, you can build a house if you put your mind to it. There is always a case where you save from whatever your income is. The study has shown that 30% of the moderate level of what we receive monthly goes towards the purchase of very minor goods and junk.

So you can cut down on unnecessary expensive food in expensive restaurants. Sit down, take inventory of unnecessary expenses and start saving just 20% of your income, no matter how small it is in 2 years you will start a home of your own, all you can save will be enough to start your home.

Professionals benefit most from this type, with down payments, profit sharing, and commissions, among others.

Personal savings, among others, is the first option if you want to buy land and build a house.

ADVANTAGES

Yo. There are no debts to attend to or pay regardless of the turn of events.

ii Rest, since no creditor comes knocking on your door.

iii. It’s healthy in the long run, when your mind is free of fear, you’re more likely to live a healthy life and avoid hypertension.

IV. It gives you space to channel your earnings into something worthwhile, and it gives you more responsibility.

DISADVANTAGES

Yo. It can take a long time to achieve your dream

ii It bites into your income and you can moderate your lifestyle

iii. Staying too long can cause someone to lose interest completely and abandon the project.

IV. There is always the fear that the families of the landowners (Omo Onile) will rise up to make a dubious claim on their land, especially when the seller is dead, due to the long construction time.

v. There is always the possibility that savings will be converted for other uses.

saw. Inflation in the cost of materials and labor may also be taking a serious toll.

2. MORTGAGE AND WORK LOANS

This is more attractive to workers who plan to invest in Real Estate. Although it is mostly used for personal buildings, but if I give you some honest advice, it is better that you, a young man or woman, build it, then rent it out, and let the building pay off the loan while you sit back and collect the rents. So now use the dividends to finance another project.

The National Housing Fund continues to be the most attractive room for maneuver for those who want to build with a loan, especially public officials. It is designed by the government to assist the federal Mortgage Bank of Nigeria, with less red tape than before and currently offers a maximum of N5m at an interest rate of 6% and a repayment term of 25 years.

This fund can be incorporated through any of the Nigerian Mortgage Banks.

ADVANTAGES

Yo. Quick completion of construction.

ii. The repayment period is long and is automatically removed from your monthly income without you feeling the pinch because it is usually so small.

iii.The interest rate is very low.

IV. If you understand real estate, this opportunity can make you a millionaire.

DISADVANTAGES

Yo. You are in debt for a long time.

ii. Interest rates, however small, will continue to eat away at your pocket.

iii) Sudden termination of your job can leave you out in the cold against your creditors, what if you can’t get another job?

3. COOPERATIVE AND SECURITY HOUSING PROGRAMS

This method is becoming more popular with the young workforce and many cooperative housing schemes are springing up every day. It employs the same old operating template, only in this case you are expected to be a homeowner. All members pool resources to build houses for each member in areas of choice. This is an alternative to the mortgage for low-income wage earners, who make a minimum monthly contribution in overtime.

ADVANTAGES

Yo. Similar to home loans, quick completion due to readily available funds.

ii. Sometimes the members buy a large tract of land and divide it among the members which is comparatively cheaper, they get professionals to do the projects in large volume and in turn the professionals charge less due to the large number of jobs. The cost of housing can be reduced by 25% with this method.

iii. It encourages other mutual benefits and promotes friendship.

DISADVANTAGES

Yo. It definitely goes without saying that the cooperative society of choice should be well researched and thoroughly vetted to determine the commitment and integrity of its members. Some members may decide to default and this can lead to the collapse of the cooperative club.

4. SPECULATION IN LAND AND CAPITAL MARKETS

Have you packed in a developing area before that is still full of vegetation? 3 months from now, what you will notice is an increased influx of people from that location, whether they are trying to secure your land or are encouraged to move into the location for you, and are sure to meet neighbors for talk, business, or probably for security, whatever, there is always a trend of people moving into a location because someone like you just moved. So what happens? As you get more traffic, the value of properties in that area will naturally increase.

So when you buy a piece of land, why not buy two or more? As you build one, the other pieces of land will appreciate in value, sell them and use them to complete your guest house.

ADVANTAGES

Yo. You may not feel the pinch of paying as much because your investment will increase for you.

ii. This can be a starting point for you in real estate investing, this will give you first hand knowledge of how it works.

iii.Benefits such as naming the street with your name and others.

IV. You are not bothered by loan repayments as you are building on your investment.

DISADVANTAGES

Yo. Because this is a new area with less development, you may not have access to some infrastructure facilities that already exist in major cities.

ii. It may take some time to wait for other lands to appreciate before you can complete your project.

5. OBTAINING LOANS FROM YOUR BANK

With the consolidation of Nigerian banks, there is now a lot of money available for business transactions, so banks these days are ready to lend you money in order to complete your building, although this process is the most difficult to choose.

ADVANTAGES

Yo. Completion of work on time due to availability of funds

ii.If you are sure of the location, you can sell the building and make a quick profit due to the fast completion

DISADVANTAGES

Yo. warranty request

ii. Bureaucratic bottlenecks

6. DIVIDENDS FROM HIGH YIELD INVESTMENT PROGRAMS (HYIP) AND STOCKS

Some smart young couples are making use of this program to develop their homes stressfully. Although high return, high risk, this is by far the best and easiest way that I can recommend to anyone building their home. Before you get into trouble with most HYIPs, there is a high yield investment program promoted by an oil and gas company in Nigeria called Nospectus, you invest N450,000 in their company and they in turn at the end of each month will pay you N40,000 in 12 months, you would have done 100% turnover, and the good thing about this company is that you can withdraw your N450,000 capital anytime you want (also has Clubfre edom, among others). .)

One couple increased theirs to 200,000 Naira per month, or 5 squares, and they built their chosen house with so much stress that they imagine having 200,000 Naira per month as extra salary without any extra effort. “Note: Although I’m not recommending them, I know quite a few people on this scheme.

There are also many HYIPs on the internet, but you should check out the ones that are already involved before you get scammed. The least risky are buying stocks, bonds, etc. and use the proceeds to build your house.

“My general advice is to start small”

ADVANTAGES

Yo. Very easy to generate a steady flow of cash for your building.

ii. The more investment, the more money to help finance your construction project.

DISADVANTAGES

Yo. High risk

ii. Stocks can plummet

iii.Companies can pack tomorrow

IV. A wrong decision by the investment company can lead to the closure of the deal and affect you.