Roots and Roofs: Diaspora Voices. Interview with Lola A.O

Question: Can you share your thoughts on owning a home in Nigeria? Is this something you’re looking to do within the next 3 – 5 years?

Answer: It’s something I will be willing to do for investment purposes.

Question: If you were to buy a home in Nigeria, What option would you use, Outright Purchase (Paying the full Amount), Developer Payment Plans (A structured payment plan with 0% interest but is usually short term), or Mortgages (Paying over a long period with interest)

Answer: I will be looking at both developer payment plans and a mortgage, especially if I could access my NHF contributions.

Question: What are some obstacles or concerns you think exist or have heard diasporan Nigerians talk about when it comes to buying a house in Nigeria?

Answer: Two main concerns emerge: trust and fraud. People fear losing money to unreliable agents or companies and struggle to access NHF funding transparently. Large initial deposits requested by some developers present another hurdle. Improving transparency, credibility, and flexibility in the process can alleviate these concerns.

Question: Describe your ideal journey towards owning a home in Nigeria. What would ease the process for you and make you feel confident and secure during the home purchase journey?  

Answer: To increase my confidence and peace of mind during the home-buying journey, I require several key elements. Firstly, having a straightforward and uncomplicated process is vital to minimize stress and uncertainty. Secondly, the developer should offer insurance coverage as an added layer of protection in case the company experiences financial difficulties or bankruptcy. Lastly, a fair and reasonable payment plan tailored to my needs and capabilities is essential to ensure affordability without undue burden. With these factors in place, I would feel much more comfortable moving forward with a home purchase in Nigeria.

Question: What would be your motivation to buy a home in Nigeria? To live in, retire back home, or have something when visiting rather than using a hotel, or as an investment?

Answer: Investment

Question: What specific locations do you find most appealing for purchasing a property? Are there regions or cities you believe offer better investment opportunities or living conditions?  

Answer: Lagos & Abuja

Question: When looking to buy a property, what are the top 3 things you consider before nodding your head to proceed with the transaction? For instance, some people will only buy properties in an estate.

Answer:

1. The first thing you will consider: Given the possibility of utilizing the property for investment purposes, such as rentals via platforms like Airbnb, being situated near the city center holds great appeal. Accessibility enhances value and attractiveness to prospective tenants.
2. The second thing you will consider:  High-quality road networks, consistent power supply, and clean water availability.
3. The third thing you will consider: Good security and a well-maintained, safe neighborhoods—ideally enclosed within a gated estate, further reinforcing security.

    

Question: In your opinion, how does the process of buying property in Nigeria compare to that in your current country of residence? Are there particular practices from abroad that you think could be implemented in Nigeria to improve the home-buying experience?

Answer: Absolutely, I see distinctions in the process. Acquiring property in places like the UK and US typically proves smoother because of advantages such as simplified mortgage access and attractive incentives for new homebuyers. Schemes like Lifetime Cash ISAs in Britain, where one can obtain a £1,000 bonus upon saving £4,000, exemplify alluring benefits for newcomers. In 6 years, you would have saved £10,000 which might be enough for a down payment on a house. Now imagine if you started saving at 30 or younger.  Likewise, the US allows individuals with steady incomes to buy homes via installment plans starting with minimal interests, requiring no initial capital.