HomeGiddy: The Smarter Way To Rent-to-Own Your Home. Here's Why 

BY HomeGiddy | 30 Apr, 2022 | 9 MINUTES READ

As you mull over how much you've paid and may still have to pay as rent, the rising prices of properties and the cost of building, the lack of access to and the high cost of mortgage in Nigeria, you begin to feel an overwhelming sense of frustration with how it is becoming increasingly difficult to find a reliable solution to own your home as a first-time homebuyer or tenant .

Owning a home is a dream that we all have and hope to see come true for many good reasons. But with all the hurdles to jump, surely you can do with some help along the way because you already work hard and you deserve something better. So you have been looking for a smarter solution that will help you live your aspiration and you possibly found this blog post because you haven't given up on that dream. Now, it is possible to own your dream home just as you've imagined: truly affordable, uniquely flexible and friendly.

So Why HomeGiddy?

True to our vision, we resolve these limitations by providing the help that you need to own a home in the way that you can afford to and not just how the seller wants to be paid for it. You can now enjoy more freedom to create the most affordable home buying plan based on your present and future financial situation. Let's share some of the benefits of the service with you:

Pay a deposit to move into your dream home 

Most people cannot afford to buy a home outright because of the initial outlay involved. This huge upfront payment has been the bane of most prospective or first-time home buyers. To make the process more affordable for you, we accept a deposit amount as low as 20% of the price of the property and you can move into your dream home with limited paperwork. You can spread the agreed balance of the purchase price over such a period of time  (in months or years) that makes the periodic payments fit your budget and cash flow to make it convenient for you to meet your payment obligations.

Want a better alternative to mortgage?

So you thought taking a mortgage loan to finance the purchase of your home was a great idea until you received the term sheet indicating a high fixed interest rate and other incidental expenses including the charges for the perfection of the mortgage. Also, you are now confronted with the reality of the loan-to-value (LTV) consideration which sets the maximum limit of the loan amount as a percentage of the forced sale value of the property. Let's tell you how this works: assume that you want to buy a home with an offer price of N50 million and a forced sale value of N35 million based on the valuation by your Bank. The maximum loan amount that the Bank may be willing to offer you based on LTV of 70% is N24.5 million i.e. 70% of N35 million. This means that you need to have a minimum equity of N25.5 million which translates to 51% of the offer price which doesn't work if you only had N15 million for the transaction. So you can have some savings and still not qualify for the amount of mortgage loan that you need.

HomeGiddy helps you to avoid the limitation of the LTV condition by accepting the N15 million as deposit amount for you to move-in provided that you can afford the rental payments resulting from your preferred terms. Compared with a mortgage, HomeGiddy lowers the barrier for you and helps you to save a ton of money with better financing terms.

Don't lose your hard-earned money to inflation

Trying to save to buy or build a home over an uncertain period of time can make inflation work against you. With increasing property prices and cost of building, it is smarter to use an alternative that gives you a home immediately or at an agreed (for homes under construction). 

With HomeGiddy you can lock-in a known and certain purchase price for a 3,5,7 or 10-year plan today and it will not change no matter the effects of high inflation in future. Assume you have locked-in the purchase price of your home at a total payment of N50m over a 7-year plan but at the end of that period similar homes are selling at N70m due to inflation/increased demand, you have some N20m gain there 🤑. Owning your home this way is how you hedge against or even gain inflation.

We have skin in the game

Buying a poor quality home can be a drain on your savings with incessant and expensive maintenance issues that you have to keep fixing. The last thing you want after waiting for many years to own a home is to get a bad one without recourse to the seller. 

With HomeGiddy you get good quality homes because it is the right thing to do. In addition to that, we own the property until you exercise the option to buy it at the end of the agreed term. So you can see that we have a vested interest in the success of the transaction by ensuring that the quality of the property is not compromised in any way. In terms of our commitment to the relationship with you, it is obvious that we're willing to stake our bet that your financial plan will have a good payoff. This is the risk that others are unwilling to take to make homeownership affordable for you.

How to use HomeGiddy

Search our listing to find a suitable home and start your journey with us. We have more properties and new developments at the pre-listing stage so don't worry if you can't find what you want from the listed homes. Tell us the type of home you want, your preferred location(s), when you want to move in and how much deposit you can afford and we will come up with the right homeownership plan for you within the shortest possible time. Get started today.

Visit www.homegiddy.com to get started or learn more. To get answers to your questions email us at enquiries@homegiddy.com or call us on 01-2791411.


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