Pay for properties over time: Developers offer flexible payment plans
Why pay N40m for a lovely flat when you can pay N10m now as part payment and spread the rest over three years? Paying outright for a property is an ideal bargain for those with such an amount in their bank accounts, but you should not despair if all you have is one-third of the total amount or even less. Many developers have flexible payment plans for their properties, and in this article, we will examine a few of them.
With flexible payment options, prospective home buyers can choose and customize their preferred payment plans. Some of these payment plans can spread from 3 months to years. So if you want to purchase quality houses without breaking the bank, a flexible payment plan is the way to go. Castles Lifestyle presents flexible payment options from two developers and how their payment plan works.
The first is from Megamound Investment Limited, a trusted real estate company with over thirty years of experience. Featured below are two developments from them – The Greater Lagos County Apartments and The King Smart City.
The Greater Lagos County Apartments
The Greater Lagos County Apartments offer 1 to 3-bedroom apartments in Surulere, Lagos. Aside from the payment plan allowing buyers to spread their payments for up to 21 months, Megamound offers buyers a 7-year mortgage on all apartments. The current prices for the apartments are N38m for the 1-bedroom apartment, N45m for the 2-bedroom and N55m for the 3-bedroom apartment, each requiring a 20% down payment.
King Smart City
While the Greater Lagos County Apartments is offering completed residential apartments for sale, the King Smart City is selling plots of land in Lekki. Land sizes for sale vary from 405 – 2000 SQM, and prices are set at N75,000 per SQM. With an organized and flexible payment option, buyers can spread their payments over 18 months after a 50% down payment.
Contact: 08180006149, 08180006132, 08180006154, 08180008147
Website: thekingsmartcity.com
Save N5m on this apartment in Ketu
Suru Homes is offering a payment deal that allows buyers to save up to N5m with their off-plan prices on 3-bedroom apartments in Ketu, Lagos. This development has estate facilities like a landscape garden, ample parking space, a security alarm system and entrance and exit gates. At the start of the construction, buyers could pay N37.5m off-plan, saving them N5 million when the construction is completed.
A benefit of buying properties off-plan is the ability to secure the purchase at below-market value. This frequently occurs because developers try to sell as many units as possible before the building is finished or to make a particular amount of sales before promoting it.
At Suru Apartments in Ketu, progress has been made in construction, and the off-plan offer is no longer available. Construction is now 90% completed, and this has had an impact on the price. However, buyers can still save money by choosing from flexible payment plans. Depending on your plan, you can save up to N5m on a 3-bedroom apartment.
Current Payment Plan:
3 months payment – N40m
6 months payment – N42.5m
Completed – N45m
Deposit – N10 – 15m
Contact: 08033737598
Website: suruhomes.com
Advantages of buying ‘off-plan’
It can be a win-win for the developer and the buyer looking for a home. It can also be a nightmare transaction where the prospect ends up with neither money nor a dream home.
Investing in property off-the-plan is a unique way of buying property in a new development that has not yet been completed: either at the concept stage, design process or under construction. So here’s how it works: the developer usually asks the buyer to commit a percentage of the purchase price and pay the rest later at certain times or when certain stages are reached (milestones) in the construction process. Final payment is usually before the project’s completion (or expected completion date).
The ‘off-plan’ rewards
The off-plan model addresses the need of the developer to access funds without paying the high-interest rates imposed by financiers like banks. It, therefore, follows that the property should be offered at a lower price than the usual market price. The amount discounted can range from 20-40% depending on the project, developer and the stage of the construction process the buyer comes in. So, if the amount to be paid for the off-plan property is close to the market price, then the purchaser bears all of the risks but does not get the major advantage of buying off-plan. The savings on price must be commensurate to the risk you are taking for buying a property you cannot move into immediately.
Another benefit is the ability to lock in the price. However, you must ensure that the document does not give the developer any (or too much leeway) to increase prices or add extras that come at an additional price.
For the buyer, it helps him/her enter the property market without paying full price. The buyer’s cash flow is not disrupted, unlike outright purchase. The corollary here is to take a hard look at the payments you have to make and the timing. Can you make those payments? If you can’t, you will affect the developer’s schedule, affecting the progress or even completion of the work.
Another advantage of off-plan purchase is the ability to influence the choice of finishes and fittings: In addition, the buyer can work closely with the builders to make changes in the areas of finishes and accessories generally. Some developers deliver the building in a ‘carcass or shell state,’ i.e., only the exterior is finished, allowing the buyer the option of finishing the interior to his taste and at his pace. Whatever option is offered, ensure that you and the developer completely agree on what ‘finished,’ ‘carcass or shell’ means.
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