5 THINGS TO LOOK OUT FOR BEFORE CONSIDERING A PAYMENT PLAN OPTION.

Many people who overlook this often end up paying dearly for it.

 

“Don’t worry, if you cannot pay the outright fee, we also offer highly flexible payment plans that allow you to…” 

If you’ve ever considered buying a home in Lagos state, you must have heard this statement a thousand times in different ways and that is because buying a home is a huge financial step. Many people often exhaust all their savings and even take out loans just to be able to pay the total cost of a property. 

To curb this, many developers offer different payment structures to decide to own a home a little less difficult for their customers to make. 

But while this option may look like a good one, there are a few things you must consider before you opt for this payment system. Many people who overlook the tips shared in this article often end up paying dearly for it. 

So, before you accept to pay in installments;

 

      1. UNDERSTAND YOUR FINANCIAL POSITION 

Can you afford to buy this home, even with the payment structure? Because, although Real Estate investment is a highly profitable investment, it shouldn’t be the reason for you to go beyond your earnings and budget.  

Take stock of your income, expenses, and savings to determine a realistic budget. This way, you avoid committing to a payment plan that will overstretch you in the long run. Consult with a financial advisor to gain insights on how to manage your finances effectively.

 

      2. CONSIDER THE INTEREST RATE 

Many people hastily commit to a payment plan before finding out what the true added rates are. 

Ensure that you understand the interest rates that will be applied to the installment payments, as high interest rates can significantly increase the total amount you will need to pay.

 

      3. LOOK OUT FOR HIDDEN CHARGES 

There’s a reason why they are usually “hidden.” This is usually where most unscrupulous developers rip off their customers. 

To avoid paying way more than intended, make sure to check the fine print for any additional fees that may be associated with the payment plan. For many developers, some of the most common fees to watch out for are late payment fees, processing fees, etc.

 

      4. READ THE TERMS AND CONDITIONS 

One bad habit a lot of Nigerians have is skipping the terms and conditions. Mostly because they often come as bulky documents with vague words and since it doesn’t cost much, you tend to just skip it. 

However, this approach should not be applied to Real Estate investments. Buying a home involves a huge financial commitment, making a thorough consideration highly important. 

Therefore, ensure you carefully read and understand the terms and conditions of the payment plan, including the duration of the payment period and any penalties for late repayment before opting for a payment plan option.

 

      5. PLAN FOR CONTINGENCIES 

Things change, life is unpredictable, and unforeseen circumstances can arise anytime. So, before you opt for a payment plan system, ensure you factor in potential contingencies such as economic downturns, job loss, illness, or economic downturns. 

Establish a backup plan or emergency fund to cushion against financial setbacks that may arise. This way, you don’t miss out on your monthly payments or risk losing out on your home investment. 

At Lekki Gardens, we believe that owning a home is an investment, not a punishment. That’s why our homes are more affordable across the market. Whether you choose to pay outright or take advantage of our flexible payment plans, you are guaranteed that it won’t put a strain on your finances in these economic times. 

 

 

Contact us today at +234 700 666 6888 to discover how we can help make your real estate investment worthwhile.