Rent-to-own accommodation debuts

One of the prototypes of a Mass Housing Scheme

A new concept to the Nigerian housing sector has been introduced by the alternative asset investment company, NatanelFlorens Limited, which unveiled a rent-to-own initiative known as Rent-Own-Earn. The company’s Executive Director, Marketing Services, Mr. Yinka Daramola, said at a meeting to announce the unveiling of the initiative and other investment opportunities offered by the firm, that owning a property in the country had been a challenge for decades.

According to him, Nigerians face a lot of challenges in trying to own properties and the initiative will help to meet that need.

Daramola said, “Most Nigerians don’t have properties of their own, they are on rent and most people have lost hope, because the means and wherewithal to acquire assets in these climes are not there. Mortgage is not available and when it is, it is not affordable.

“People have had to wait for at least 15 to put brick and mortar together, and we thought that there must be a way out. Our mandate is to ensure that we reduce the high rate of inability to access houses by at least one per cent in the next 10 years, and we have started.”

He said the firm had already acquired about 500 to 600 units of houses through the developers’ scheme and that 90 per cent were currently on lease by Nigerians.

The rent-to-own initiative, according to Daramola, has zero interest rate and equity contribution, and tenure of between 15 and 20 years.

“It gives us joy to see the faces of Nigerians who never thought they would own homes being given keys through our rent-to-own initiative. They start by paying rent and harmonising that for 15 to 20 years with no equity contribution, zero interest rate and the rate remains flat for the tenure of that transaction,” he said.

Daramola stated that up to 3,000 people had signed up and were awaiting assets they could own, adding that the firm had partnerships with developers who had assets considered to be debt capital.

“We acquire and put the houses through our rent-to-own initiative. When we offer assets to potential subscribers, we ensure that our cost does not go beyond a certain limit. We ensure that the cost is the same with what is obtainable in a particular area. And to avoid default, we always ensure that we encourage tenants to take rent insurance,” he added.

The firm also inaugurated an investment campaign known as ‘TalktoAndre’, which encourages people who intend to rent, buy, lease or invest in real estate to engage NatanelFlorens.

The Executive Director, Funds and Investment, NatanelFlorens, Mr. Oguche Agudah, said the initiative was a free advisory campaign to aid investment and investors in the entire value chain of the property market.

He said, “We want to enlighten people who want to rent, buy or invest in real estate to talk to Andre, which is NatanelFlorens; it is a free advisory campaign to investors in the whole value chain.

“We call it hassle free investment above market returns. Even in recession, property is the only market class that is resilient and inherent in many houses is equity that can be used to do so many other things; we are pushing private wealth for each family by offering liquidity through this initiative.”

Culled from The Punch Newspapers