When I first started thinking about purchasing property in Lagos, I couldn’t help but wonder: is it possible to buy a house here and pay in installments? After all, Lagos is known for its bustling economy, growing infrastructure, and skyrocketing property prices.
But the idea of paying for a home over time, rather than having to fork out a huge sum all at once, seemed like an appealing option. In this blog, I’ll walk you through everything you need to know about buying a house in Lagos with an installment plan.
Understanding the Basics: Can You Buy a House in Lagos and Pay in Installments?
The short answer is yes! In recent years, paying for homes in installments has become an increasingly popular option in Lagos, especially for middle-class buyers and first-time homebuyers. Many developers and real estate companies now offer flexible payment plans, making homeownership more accessible than ever.
While buying a house outright with a mortgage is still a common route for many, paying in installments is another feasible option that allows buyers to spread out payments over a certain period, often between 12 months and 10 years. Some developers even offer payment plans that span up to 20 years.
Types of Properties Available with Installment Payment Plans
The beauty of installment payment plans in Lagos is that they’re available for a variety of property types, whether you’re looking for an apartment in the city or a family home on the outskirts. Here are some of the most common property types where you can buy and pay in installments:
1. Residential Apartments
Lagos boasts a wide range of residential apartment options, from high-rise buildings to low-rise developments, catering to various budgets. Depending on the location and type of apartment, prices can vary greatly. In prime areas like Lekki, Victoria Island, or Ikoyi, expect higher rates, but for areas like Alimosho or Agege, you can find more affordable options.
Installment Plan: Many developers allow you to pay over a period of 1-3 years, depending on the property’s cost and the developer’s terms. You may be required to make an initial down payment (usually around 10-30%) before paying the balance in installments.
2. Detached Houses
If you’re looking for more space and privacy, a detached house in Lagos might be the ideal option. Detached houses are a bit pricier, but if you’re willing to look in developing neighborhoods or suburbs, there are more affordable options.
Installment Plan: For a detached house, you might see payment plans ranging from 2-10 years. An initial deposit could be higher, but the option to spread out payments is still there. Areas like Ibeju-Lekki or Abijo offer larger plots of land with more affordable pricing.
3. Townhouses and Duplexes
If you want something in between an apartment and a detached house, townhouses and duplexes are a great middle ground. These properties are usually in gated communities, offering security and more communal spaces.
Installment Plan: Payment terms for these types of properties may range from 1-5 years, depending on the price. For example, in places like Ajah or Lekki, developers typically offer 12-month installment options with a down payment of 20-30%.
4. Off-Plan Properties
These are properties still under construction, which are available for sale before they are completed. Off-plan purchases are especially common in fast-developing areas of Lagos.
Installment Plan: Developers typically offer flexible payment terms for off-plan properties, sometimes allowing you to pay over a 3-5 year period, as the construction progresses.
Locations in Lagos with Installment Options
Now, let’s talk about some of the areas in Lagos where you can find properties with installment payment plans.
1. Lekki
One of the most sought-after locations in Lagos, Lekki offers both luxury homes and affordable housing options. The area is well-developed, with a variety of properties, including apartments, duplexes, and townhouses. The proximity to the Atlantic Ocean, excellent roads, and modern amenities make it an ideal place for investment.
Many developers offer installment payment plans for properties in Lekki, with payment schedules ranging from 1-3 years. However, the initial cost might be high due to the area’s prime location.
2. Victoria Island (VI)
Victoria Island is another high-demand location, known for its upscale living and thriving business district. Though properties here tend to be expensive, there are developers that provide flexible payment options, especially for apartments or off-plan developments.
You might be able to pay in installments for properties in VI, though keep in mind the down payments could be significant.
3. Ajah
Ajah is one of the rapidly growing areas on the mainland, offering affordable housing options while still being close enough to the Lekki Peninsula. Properties here are generally less expensive than those on the island, but you can still find modern homes, townhouses, and apartments with good payment plans.
Installment options for Ajah properties are typically available, with terms ranging from 1-5 years.
4. Ikeja
If you’re looking for more central, urban living, Ikeja is a great option. As Lagos’ capital city, Ikeja is home to important government offices and a thriving commercial sector. The real estate here offers both luxury apartments and more affordable houses.
Ikeja provides flexible payment plans, especially for apartments and townhouses, which are common in this area.
5. Ibeju-Lekki
Ibeju-Lekki is gaining popularity as an investment hotspot due to its proximity to the Lekki Free Trade Zone and the new international airport being built. Properties here tend to be more affordable, and many developers offer installment payment options for both land and residential units.
Installment terms can range from 2-5 years, which is great for first-time homebuyers looking to enter the market.
6. Abijo and Bogije
Located further along the Lekki-Epe Expressway, Abijo and Bogije are emerging areas where developers offer affordable homes and land. These locations are perfect for anyone seeking to invest in Lagos’ growing real estate market.
Many property developers in these areas are willing to offer up to 3-year installment plans, making it more accessible to buyers looking for affordable housing options.
Key Considerations When Buying Property in Installments in Lagos
- Down Payments: Expect to pay an initial deposit, usually around 10-30% of the property’s cost, with the remaining balance paid in monthly installments.
- Interest Rates: Some developers charge interest on installment payments, while others may offer interest-free plans. Always check the terms before committing.
- Developer Reputation: It’s essential to choose a reputable developer with a history of completing projects on time. Research the developer and read reviews from previous buyers.
- Legal Documents: Ensure that the property has all necessary legal documentation, including the Certificate of Occupancy (C of O) and any other relevant permits.
- Flexible Terms: Different developers offer different payment schedules, so it’s worth comparing the terms before making a decision.