Nigeria Not Ripe for Rent-to-own Housing Model – Previs

• Nigeria Not Ripe for Rent-to-own Housing Model – Previs

A real estate firm, Previs Developments, has said the rent-to-own system of homeownership is not a sustainable model in the country for now.

The firm stated that despite the seeming simplicity of the model, a careful study of the offering in the market now would show that the absence of mortgage financing had significantly limited the number of homes that could be delivered using the rent-to-own scheme.

According to the Managing Director, Previs Developments, Peter Coker, with some of the firm’s building developments sold out using the rent-to-own scheme, it has found out that the Nigerian real estate market is not yet ready for a rent-to-own model for houses.

“We want to cater to Nigeria’s underserved middle market. This is why we have created a product called Rent-to-Own Land. 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,” he said.

The Project Lead for Previs, Posi Lawore, stated that the firm was a Special Purpose Vehicle in the James Cubitt Group with a vision to make property ownership possible, enjoyable and meaningful for everyone, hence the need for the rent-to-own land scheme.

He added, “Under the RTOL scheme, our planned estates are strategically located. Subscribers under our RTOL scheme enjoy up to 200 per cent capital appreciation, because the estates are in developing areas, which are receiving focused attention from the government.

“These estates are properly planned. Subscribers know that their neighbours will not turn their residences to office spaces years down the line.”

He said the number of residential accommodations being transformed to office spaces continue to increase daily, and this would invariably change the dynamics to the living conditions and may affect property usage and pricing.

The Marketing and Communications Lead for Previs, Tolulope Olorundero, explained that the first phase of the company’s property in Lekki Phase II had been sold out, while the second phase was also fast selling out as subscribers were enjoying monthly and annual payment plans of up to five years.

“The estate is desi gned to deliver social amenities such as schools, recreation spots and communal spaces,” she added.