manny4life:

Can someone enlighten me because I'm a lil lost on this " low cost housing" scheme. How much is this housing supposedly costing the average buyer? What is the earned income threshold limit to be qualified for this house / to be able to qualify for a mortgage loan?

Let's look at this scenario assuming this is the best case scenario knowing this is quite unlikely. We can agree some of this number are higher than what I've quoted

A house cost $3,000,000 with a 30% deposit, mortgage instrument to finance the balance. The loan amount is N2,100,000 for a period of 10 years. If I plug in this number using the PMT function, mortgage monthly payment would be N23, 314 for the next 120 months. This seems affordable in the sense only if

1. The house is sold for N3,000,000 or less (including any discounts) but we know this couldn't be the case due to the fact the govt might not be willing to write off losses on its balance sheets.

2. At an APR of 6% which we know this figure is way more than that, and the govt will not be anymore willing to embark on bad debt loans in case of defaults hence the reason why it will defer it to partnered commercial banks who take the risk and charge higher interest rate.

3. The term of the loan is 10 years but we can agree most Nigerian banks would like shorter terms due to risk assessment increasing the monthly payment

4. The higher the cost of the house, the higher the deposit, and even if the deposit is financed through a bank, that's a higher debt obligation as well.

Now the real question is, if everything remains equal and someone makes a payment of N23, 314 monthly (insurance, maintenance, etc isn't included), how much is the average qualifier making monthly. Using the highest assumption that 50% of your monthly income goes into mortgage, buyer must be making at least N46, 628. We know this can't be the case, knowledge and experience, at most no more than 25% of your net income should be reserved for your rent/mortgage.

Bottom line is that unless someone is making at least 65k with the above assumptions, it's way impossible.

GOOD BLESS YOU

@ Eko Ile

Their is no low cost housing in LAGOS.

PERIOD .GOOD NIGHT.

emmatok:

GOOD BLESS YOU

@ Eko Ile

Their is no low cost housing in LAGOS.

PERIOD .GOOD NIGHT.

How dumb can you be? So in your shallow mind, low cost have to be peanuts?

Don't you 1st have to convince the me what what the government is offering cost more than what the private market is offering?

Common sense should tell you that if what ever the government is offering cost less that what's available in the private sector, it's low cost.


How do you define low cost? Anything that cost 5 naira?


Ode,

Eko Ile:


How dumb can you be? So in your shallow mind, low cost have to be peanuts?

Don't you 1st have to convince the me what what the government is offering cost more than what the private market is offering?

Common sense should tell you that if what ever the government is offering cost less that what's available in the private sector, it's low cost.


How do you define low cost? Anything that cost 5 naira?





Ode,

See how you are FOOLING yourself online.

So if GOV. is offering cost less that what's available in the private sector, it's low cost.FOOOOOL

What if the private sector is offering less than what is available from the GOV. don't you think is possible?

Low Cost Housing is a concept which deals with effective budgeting and following of techniques which help in reducing the cost construction through the use of locally available materials along with improved skills and technology without sacrificing the strength, performance and life of the structure.

For any Public or Private project, Affordability should be the goal behind it.

If it is not affordable to the general masses, it is not low cost.

Go and do your research friend.

Arantius Nonsensical.

emmatok:

See how you are FOOLING yourself online.

So if GOV. is offering cost less that what's available in the private sector, it's low cost.FOOOOOL

What if the private sector is offering less than what is available from the GOV. don't you think is possible?

Low Cost Housing is a concept which deals with effective budgeting and following of techniques which help in reducing the cost construction through the use of locally available materials along with improved skills and technology without sacrificing the strength, performance and life of the structure.

For any Public or Private project, Affordability should be the goal behind it.

If it is not affordable to the general masses, it is not low cost.

Go and do your research friend.

Arantius Nonsensical.

I didn't ask you to recite silly garbage about building materials, I asked you to highlight the difference in cost, not how houses are built.

Regardless of how much it cost you to build the house or what kind of materials used, if you are charging less than what's available in the open market, your offering is low and it's low cost to the end user.

This is common sense and simple English you d/ummy,

March 16, 2011 04:58AM

The Lagos State Governor, Babatunde Fashola on Tuesday, set housing mortgage a top priority in his agenda if voted in for a second term in the next month’s election. Mr. Fashola made the promise while addressing thousands of party supporters at an election rally held in Ibeju Lekki area of the state. “I am determined to break this mortgage jinx,” he told the supporters, who despite the scorching sun, stood to listen to the governor.

It's over a dozen years later how far with the cheap housing in Lagos And this same Fashola went on to become Minister in charge of Housing not so?

Good Luck to Nigeria.