Legrande Properties boss, Durojaiyi advocates ‘Rent-to Own’ for Nigerians
The Managing Director, Legrande Properties Development Company Limited, Deacon Jide Durojaiyi has advocated that Nigerians should embrace the ‘rent-to-own’ housing policy in order to bridge the gap in the housing deficit and have value for themselves.
Durojaiyi made this remark during an interactive section with members of the Property and Environment Writers Association of Nigeria, (PEWAN) on Thursday during a facility tour with members of the association at the project site in Ibeju Lekki, Lagos.
He disclosed that the rent-to-own scheme was approved in December 2022, adding that the policy makes the person to be the owner of the house as well as an investor in the house.
“You don’t need to carry bulk money to pay for a place. You will have money for other things and have more years to pay. Rent to own is the solution to the housing problem and housing deficit. It gives you enough time to pay and it is making a tenant a homeowner.
“You have enough money to take care of your family. You are creating value out of the rent you are paying. Many people can fall for this before they retire. Now that Naira is depreciating we need to invest in real estate,” he said.
He pointed out that the Naira is killing the real estate business as cement prices keep increasing monthly.
Legrande Properties Development Company Limited, boss lamented that people are not aware or don’t have confident in banks because there are a lot of resistant, for instance the FMBN that disburse money to the primary mortgage institution (PMI) and the PMI fails to disburse same to the people, so they created the rent-to-own in order to deal directly with subscribers.
“Now, once you are a contributor to the Federal Mortgage bank you are qualified and will be charged one percent interest and the only collateral that the bank need from the person is the deed from the developer, in the case of Alexandra Courts the subscriber need to pay an initial deposit of 10 percent for N4.6million, while the bank pays the rest,” he said.
Fielding questions on the high cost of payment and maintenance of the estate, he said that because it will be difficult for the low income earners to be accommodated due to the high cost of land in Lagos, the company formed an alliance with the Lagos State government for general maintenance of the estate.
He stated further “We don’t have to bother people with energy costs, so light in the estate is going to be driven naturally. The 5KVA solar system has the capacity to run for about three days and then the battery has a life span of about 15 years. People are only paying 45,000 per annum for security, maintenance, cleaners, among others.
“We have rooms with wardrooms, water heater, fitted kitchen, table top, microwave, dishwashers incorporated with uniform designs to make it habitable.”
He allayed the fear of land gabbers known as Omonile, and highlighted that based on their experience with their Mende Villas they decided to work with Lagos State government that has made it digital to know the history of any land they want to acquire, adding “ We are dealing with government for due diligence. So, once it is such a scheme with the government no one disturbs you.”
According to him, his company has to key into the mini cities project which has produce about 26 mini cities because Lagos State government is talking of urban renewal and do not want the mini cities to be developed like the main lands, hence the company is developing Alexandra courts with all facilities with t all the plots linked to one sewage.
“So they do quarterly payment to maintain the facilities through a facility manager,” he added.
Durojaiyi advised Nigerians to reach the Federal Mortgage bank to assist them to get the 70 to 90 percent mortgage loan which is charged at a single digit interest to rent and own the housing units being provided by Legrande Properties Development Company Limited, at Ibeju Lekki, Lagos.
