How To Do Federal Style In A Very Small Room 6 Ways of Financing your Building Projects

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6 Ways of Financing your Building Projects

To get a loan to build a house, you must understand that a guarantee 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 means, then choose the most suitable for you.

1. PERSONAL SAVINGS

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

Honestly, it doesn’t matter how small your salary is, you can build a house if you put your mind to it. There is always a case for saving whatever your income. The study showed that 30% of the moderate level of what we receive monthly goes to the purchase of very unimportant goods and garbage.

So you can cut unnecessary expensive food in expensive restaurants. Sit down, take inventory of wasteful expenses and start saving just 20% of your income, no matter how small you will start your house in two years. being able to save will be enough to start your home.

Professionals are the ones who benefit the most from this type, with advances, profit sharing and commissions, among others.

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

ADVANTAGES

i. There are no debts to pay or repay no matter how things change.

ii Rest, for there is no creditor to come knocking at your door.

iii.It is healthy in the long run, when your mind is free from fear, you are more likely to live a healthy life and avoid high blood pressure.

iv. It gives you room to channel your earnings into something worthwhile and gives you more responsibility.

INCONVENIENCES

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

ii It bites into your income and can moderate your lifestyle

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

iv. There is always a fear that the families of the land owners (Omo Onile) will rise up to claim doubts about your land, especially when the seller is dead, due to the long construction time.

V. There is always a chance that the savings can be converted to other uses.

i saw Material and labor cost inflation may also be falling seriously.

2. MORTGAGES AND EMPLOYMENT LOANS

This is more attractive to workers who plan to invest in real estate. Although it is mainly used for personal buildings, but giving me an honest advice, it is better if you build it, a guy or a woman, and rent it out and let the building pay off the loan while you sit and collect the rent. So now use the dividends to finance another project.

The National Housing Fund remains the most attractive margin for those who wish to build with a loan, especially the civil servant. It is designed by the government to help 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 whopping 25 years repayment period.

This fund can be joined through any of the mortgage banks in Nigeria.

ADVANTAGES

i. Fast completion of the building

ii. The repayment period is long and it is automatically taken out of your monthly income without you feeling the rush because it is usually very small.

iii. The interest rate is very low.

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

INCONVENIENCES

i. You are in debt for a long time.

ii. Interest rates, no matter how small, will continue to eat into your pocket.

iii. The sudden interruption of your work, can leave you in the cold against your creditors, and if you can’t get another job.

3. HOUSING REGIMES OF COOPERATIVES AND AIDS

This method is becoming more and more popular among the young workforce and many co-op housing programs are popping up daily. It uses the same old template, only in this case you are expected to have a home. All members pool resources to build houses for each member in the areas of choice. This is an alternative to the mortgage for low-income workers, who do monthly minimum contribution overtime.

ADVANTAGES

i. As with mortgage loans, quick completion because of available funds.

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

iii.Encourages other mutual benefits and promotes friendship.

INCONVENIENCES

i. Without a doubt it must be said that the cooperative society of choice must be well researched and thoroughly investigated to check the commitment and integrity of its members. Some members may decide to default and this may lead to the collapse of the cooperative club.

4. LAND SPECULATION AND CAPITAL MARKET

Have you covered before in a developing area, which is still full of vegetation? Within 3 months, what you will notice is an increased influx of people from that location, whether they are trying to secure their land or are excited about your move to the location and are sure to meet locals to talk, transact, or negotiate. Probably for safety, whatever, there’s always a tendency for people to move to a place because someone like you just moved. So what happens? as you get more traffic, property values ​​in that area will naturally increase.

So when you are buying a lot, why not make it two or more, while you build one, the other lots will appreciate in value by selling it and use it to complete your resident home.

ADVANTAGES

i. Maybe you don’t feel sorry for paying so much for your investment that will grow 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 after you and others.

iv. You are not bothered about repaying the loans, as you are building on your investment.

INCONVENIENCES

i. Because it is a fresh area and with less development, it is possible that it does not have access to some infrastructures that already exist in the main towns.

ii. There may be a bit of a wait for other land to appreciate before you can complete your project.

5. APPROVAL OF LOANS FROM YOUR BANK

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

ADVANTAGES

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

ii.If you are sure about the location, you can sell the building and get quick profit due to quick completion

INCONVENIENCES

i. Warranty request

ii. Bureaucratic bottlenecks

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

Some smart young couples are making use of this program to develop their homes in a stress-free way. Although high yield, high risk, this is by far the best and easiest way I can recommend to anyone when building their home. Before the problems present with most HYIPs, there is a high yield investment program promoted by an oil and gas company in Nigeria called Nospectus, invest N450,000 in their company and they in turn at the end of every month will be paying you 40,000 naira in 12 months you would have invoiced 100%, and the good thing about this company is that you can withdraw your capital of 450,000 naira whenever you want. (You also have Clubfreedom among others).

A couple has grown theirs to N200,000 per month, that is 5 slots and build their house of choice so stressful, imagine having N200,000 per month as extra salary without any extra effort. “Note: Although I don’t recommend them, I know quite a few people in this scheme.

There are also many HYIPs on the internet, but you have to check out the ones that are already in it before they let you down. The least risky is to buy stocks, bonds, etc. and use the profits to build your house.

“My general advice is to start small”

ADVANTAGES

i. 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.

INCONVENIENCES

i. high risk

ii. Stocks can plummet

iii.Companies can pack their bags tomorrow

iv. A wrong decision by the investment company can lead to the closing of the business, affecting you.

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