The Minister of Works and Housing, Mr. Babatunde Fashola(SAN), have pointed out flaws in the country’ s rental system, claiming that a situation where someone is required to bring three years advanced rent of what he earns monthly in arrears is causing a significant mismatch in the rental market.
It is the opinion of the executive governor of Lagos state, Sanwo- Olu that the current rental model, in which people pay a yearly rent in advance to property owners, has become inadequate for dealing with contemporary realities in the housing sector, particularly in urban areas where demand for properties is both high and expensive.
Mr. Christie proposed a monthly rental system, arguing that it would be more affordable for low- and middle- income earners who are burdened by a yearly rent obligation.
” By constructing homes, we not only improve the family ecosystem by providing a decent environment in which to raise future leaders, but we also strengthen the economy by providing economic engagements for professionals, artisans, suppliers, and home decorators, ” he explained. Housing is such a fundamental human need that we must consider the needs of people of all socioeconomic backgrounds when providing decent shelter.
The Rent- to- Own program in Lagos is extremely robust, requiring only a five percent down payment and a simple interest rate of six percent, which is payable over 10 years. We are currently developing another product that will be a purely rental system, with residents paying on a monthly basis, which will be available soon.
Those who are not interested in home ownership will be accommodated, and current economic realities will be addressed. No one will be left out of our intervention in this critical sector, we believe, because we will be inclusive in our approach. ”
Similarly, the Minister for Works and Housing, Mr. Babatunde Fashola, Senior Advocate of Nigeria (SAN), stated in his submission that the yearly rental system had increased inequality in housing supply and widened the affordability gap for low- income earners in the city of Lagos.
Despite the fact that the monthly rental model will not result in all Nigerians becoming home owners, Fashola, a former governor of Lagos, believes that it will help reduce the number of citizens who lack adequate shelter and live on the edge of society.
According to the minister, advanced rent payment has resulted in a misallocation of wealth, with more money going into the hands of the wealthy at the expense of low- income earners and middle- class families.
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