Award-winning and super talented actress, filmmaker and producer, Mercy Anuoluwapo Aigbe has signed as the new brand ambassador to the renowned real estate firm, Leisure Court Limted. The event which took place at the headquarters of Leisure Court Limited in Abuja saw the award-winning actress signed to one of the fastest growing real estate companies in Nigeria. Speaking at the event, the MD/CEO of Leisure Court Limited, Bldr. Segun Abolaji praised the new brand ambassador for her work ethics and how she is an upright role model to the coming generation. He emphasized on the importance of relationship, how the Mercy Aigbe brand and the Leisure Court brand can both work together to achieve big things. Responding, Mercy Aigbe who was wowed by the reception, thanked the management of Leisure Court Limited for finding her worthy of this feat. She promised to give this new role her all and help showcase the company to the world. She stated the relationship is going to go beyond just business, as she’s now part of the big Leisure Court Family.
The term “off-plan” is certainly not alien to smart investors in the real estate industry, especially those with interest in the Lagos and Abuja markets. How are the rich getting even richer? Do you ever wonder how they are making so much money without commensurate stress? You might have heard it said that real estate is the cornerstone of wealth. One of the secrets of the wealthy in major cities in Nigeria is knowing how to work the opportunities they spot to their advantage. And off-plan estate buyers consistently rake in millions as profits within a short period of property appreciation – massive enough to afford them plots of land in other parts of town, flashy cars, expensive trips and even other pricey investments.
An off-plan property (also known as a pre-sale property, a pre-sale or a pre-construction) is a property you buy below the market value, when it is still undergoing development or construction. During the infancy of a real estate project, developers tend to reduce the cost of properties, offering early adopters a great opportunity for gain. Most investors would even want to monitor the projects they are keying into while making their payments by installments, to ensure that building and finishing materials are of Grade A quality and that the blueprint is carefully followed. At this stage, they can also influence the design and style of their choice houses. Only off-plan deals can give clients room for such flexibility.
Buying pre-constructions is about the cleverest way to put money into real estate, as an off-plan property you acquire for ₦35M could eventually sell for ₦50M on completion. Take a moment to consider these investors: Investor A and Investor B both have ₦50M to put into real estate. Investor A gets informed about a newly rising estate in a well sought-out location, with multiple housing units each of which the developer is willing to sell for ₦35M at the stage of development. Investor A quickly seizes the opportunity, keys into the project, and saves ₦15M off his initial budget of ₦50M, while still having the option to gradually pay certain percentages of the ₦35M over a stipulated period for the property. On the other hand, Investor B goes looking for a completely built or developed property and succeeds in getting one for ₦50M, with the condition that he has to pay the total price of the property at once. Being able to afford it, Investor B acquires the property but later finds out that the housing unit or building which Investor A had purchased for ₦35M is similar to the one he bought at ₦50M. What if Investor B also later discovers some building defects in the fully developed property he just acquired? That would mean that he, after spending an extra ₦15M for a property he could have afforded with ₦35M, also incurs additional cost of repair or maintenance of his defective property. Investor A obviously would have more cash flow, the financial capacity for more investments and profits, and less maintenance fees to worry about than his counterpart, who did not even have the opportunity to ascertain the quality of the materials used in constructing his choice property. This is a typical illustration of the difference between someone who understands the potential of off-plan properties and someone who doesn’t. Indeed, when considering what kind of property to buy with certainty about value and huge profitability, the best decision to make as a shrewd investor is to secure an off-plan property deal and monitor the advancement of the project. Provided this sort of real estate investment is undertaken with a developer who has a reputable history and culture of excellence, it is certainly a meaningful venture.
Leisure Court Limited, the developer of Leisure Court Estates & Leisure Lifestyle Homes have their uniqueness in the home market: at the inception of each estate development and off-plan marketing, the company presents a clearly detailed prototype of the estate to buyers, including 3D diagrams, site overviews, site plans, unit plans, and floor plans. The word “prototype” refers to the original sample of the building on paper, which shows the view and vista of both the structure and the environment. The amazing reality is the excellence with which they reproduce prototypes! It goes without saying that their off-plan strategy is rather a goodwill to both investors and householders, not at all an elixir to property development financing.
The Leisure Court Limited’s off-plan sales strategy is a long-term purchase plan which allows investors the chance to make capital gains from their investments by paying for their choice property within a period of 18 months. The payment terms stipulate only 20% of the price of a property as the initial deposit. For instance, if the price of a unit of luxury 2-bedroom apartment in a competitive location in the city is 45 Million Naira (₦45,000,000), the periodic and convenient off-plan payment system requires an early investor to pay only Nine Million Naira (₦9,000,000) as a subscription amount, which is 20% of the price of the property. The balance is spread for one and a half years in this manner: the buyer would pay 20% of the total price after six months, 20% after another six months, and then 40% on completion. This is to the benefit of the buyer, because once there is a signed agreement and a contract of sale, the terms of purchase cannot be compromised by the seller or developer even if the market rises within the period of off-plan purchase. When planning to buy off-plan property, an investor needs to carry out due diligence to guarantee the worthiness of the estate they intend subscribing for. As much as it is certain that a property will appreciate in value with time, there is also a possibility for a market to fall. This is particularly the case when property locations are not well researched to ensure that investors get a huge return on their investments. Location is a major stimulus for choosing an off-plan property, properties do not appreciate at the same level in different communities. For this reason, when purchasing off-plan properties with the aim of making huge returns, the major concern of an astute buyer should be selecting the ones sited in prime locations (and this is ascertained through the landmark facilities within close proximity to it, such as schools, banks, event centres, government offices and agencies, private corporations, parks, and so on; basic infrastructures in the neighborhood of the estate such as airports, seaports, access road into the estate, waste disposal systems, water purification plants, electric utility facilities, etc.; history of the place which tells whether the environment is notable for peace or violence, and several other markers). A property standing in a good location will always rise in value in the real estate market. So, location should be well ahead considered by an investor, while also checking other factors such as the reputation of the developer, trust, and conformity of construction to standard practices.
Leisure Court Limited is reputable for situating impressive estates in exceptionally strategic locations among which are Airport Road, Lugbe and Dakibiyu in Abuja; Alaka (near Eric Moore Towers, National Theatre and National Stadium Surulere), and Lekki (in the neighborhood of Sky Fall, Lekkki Conservation Centre, Elegushi Beach) in Lagos, with more estates springing up. Because of the high potential of these estates to skyrocket return on investment, there is a torrential demand for them as we have witnessed in both Lagos and Abuja. The quality of the residential developments the company has under way is gaining renowned accolades all over major cities, and raining profits for a wide spectrum of investors within and outside the country. Notable among its achievements is that, without compromising building codes and the standards of materials, the Leisure Court Limited is at the middle point of the realty market, satisfying both high-end buyers and middle-class buyers. The company has thus far stood out and weathered every storm in the industry, having provided a system that has proven to be a reliable investment vehicle to many Nigerians, and above all, having never engaged in any substandard or questionable practices which could undermine its accomplishments of many years.
With a verifiable history, good reputation, and many years of success in the industry, the Leisure Court Limited has the answer to every investor’s need. Buildings are developed in estate communities with gates and perimeter fencing, street lights, good drainage, constant electricity, and recreational facilities and security. Apartments fully fitted with AC, heat extractors, microwave ovens, gas cookers, refrigerators, DSTV dual connections, washing machines, and kitchen cabinets. With these properties strategically located, the appreciation in value will surely be on a geometrically progressive level. Who doesn’t want a house whose value multiplies on a daily basis? Upon payment of only 20% of the property’s price as initial deposit, you are offered a contract of sale that is quite lucid and devoid of loopholes, with legal protection well enunciated and all aspects of documentation taken care of at zero cost to the buyer. And given a flexible payment plan that guarantees your “breathing space” in about 18 months, you can secure the best properties in the major cities, courtesy of the Leisure Court Limited. What a joy and convenience it is to embrace this enriching approach to real estate investment. Buying off-plan properties is a millionaire’s investment strategy. You can access housing funds by joining the Leisure Court Multipurpose Cooperative Society. Remember: you will never go wrong with the right association.
The housing deficit situation in Nigeria is a well-known fact, it needs addressing and it is obvious that only government cannot solve this challenge facing the Nigerian populace. There is need for conscious efforts by organizations and private individuals in Nigeria’s housing sector in order to overcome the challenges we currently face. Innovative methods and friendly government policies towards housing development is a must now, we all need to start working together to build a future we dream of. Actualization of this dream is what gave birth to Leisure Court Multipurpose Cooperative Society. The society is looking to help create enabling environment and also help raise capital for development in housing, businesses and other projects by the members of the society.
Definition of Multi-Purpose Cooperation Society
Housing is a basic need of every human being just as food and clothing. It is very fundamental to the welfare, survival and health of man (Fadamiro, Taiwo and Ajayi, 2004). Owning a home is one of the best ways of improving one’s standard of living and place in the society. A good home can give people physical and financial security, let them care for one another in healthy living conditions and serve as a base for the family which is the foundation of every society.
A cooperative society is multipurpose because capital raised within the society can be deployed into multiple sectors of the economy. It is an organization which is owned and operated by a group of individuals for mutual benefit. This cooperative attempts to achieve various objectives whereas other cooperatives’ objective is limited. Whenever any cooperative society is established to attain various goals such as production, purchasing, selling, credits sanction, creation and so on this cooperative is called multi-purpose cooperative society. The purpose for which these societies are set up includes; credit procurement, housing, agricultural, health, etc.
Challenges of the Nigeria Housing Sector
There are various challenges mitigating against the housing sector in Nigeria. These challenges are the main causes of serious housing deficit, which the nation has encountered through the years. The challenges include:
- Land Tenure system- There is high insecurity in the current land tenure system being operated in Nigeria. With the Land use Act vesting the title to all lands in a state, in the hands of the state Governor who holds same in trust. By this mandate, the Governor reserves the right to revoke title to any land in the state for public purpose. This Act has resulted in low investment on the part of property developers who constantly entertain fears about investing in housing.
- High Cost of Infrastructure- high cost of land infrastructure is a serious challenge to provision of housing both by the private and public sectors. This instance is further worsened if the land is located far from other building facilities. In most cases, investors and developers are required to fully bear the high investment cost of provision of water and road infrastructure to the new site. This trend will significantly affect the final price of the land and ultimately the cost of the housing unit, thus affecting the affordability of the facility.
- Bureaucracy in Government- Cumbersome Legal and Legislative frameworks for land acquisition. The housing sector faces numerous bureaucracies in the process of land acquisition and titles, such bureaucracies include availability, affordability and the ease of acquisition. For example, it may take up to four year to acquire a certificate of occupancy (C of O) from the government authorities in charge of issuing such documents.
- Taxation- Investors in the Nigerian housing sector are subjected to multiple taxation. These taxes and levies include; income tax development levy, building plan approval levy, land use tax, property tax, etc. These payments act as disincentives for existing and potential investors in growing the sector.
- Hight interest rates and Inflation- the high interest rate in Nigeria (16-24 per cent) has deterred to a large extent investment in Nigerian housing sector. High interest rates have discourage potential investors especially those within the low-and middle-income bracket from seeking mortgage loans. This has resulted in such group(s) resorting to personal savings, local thrift societies, friends, etc.
- Naira Devaluation– Devaluation of Naira at certain points in the country’s history has not impacted positively on the housing sector, due to dependence on importation of material and equipment. When the Naira is devalued, it raises the cost of imported building materials needed to stimulate the housing sector. This will ultimately affect the affordability of the housing units.
- Rural-Urban Migration/Urbanization- One of the challenges facing the housing sector is the imbalance in the distribution of the population due to rural-urban drift and rapid urbanization. The movement of people to urban centres has increased the demand for housing units in these locations. The housing deficit in Nigeria is highly observed in urban centres such as Abuja, Lagos, Kaduna, etc. The main challenge facing the housing sector in this instance is the provision of adequate housing units for the teeming population in the urban centres.
- High costs of property Development- Building a house is highly expensive in Nigeria. The cost of construction is high for three reasons; high costs of building materials, high skilled labour costs, and costs associated with poor roads and sewage systems. The high costs of building materials has negatively affected the rate of building housing units in the country. The main reason for the high cost of materials is the reliance on imported goods. Most of our local building material industries are incapacitated in the operations, hence not meeting up with the demand for the products. This condition is further worsened by lack of public infrastructure such as roads, power supply. Etc.
Leisure Court Multipurpose Cooperative Society Ltd is the brain child of stakeholders in the Nigeria housing sector. It is set up to help reduce the rate of poverty by increasing the number of house owner or land owner in the country. Statistics shows that 60% of Nigerians are not land owners or property owners, a large percentage are also displaced. Owning a property or land acquisition serves as an asset which keeps on appreciating over the years. This cooperative society is a special type of society, which is established by Leisure Court Limited mainly to achieve progress in the housing sector and it is made multipurpose so as to also help its members raise capital for other businesses. The BOT Chairman, BLDR Segun Abolaji while addressing the first general meeting of the society pointed out that one of the purposes of this society is to help people escape poverty by empowering them through housing development and giving members support in their various businesses. The Secretary of the Society Barr. Seun Adeojo spoke about the society’s drive to cure the deficiency issue in the housing sector. He pointed out that the cooperative is also targeting empowerment for low income earners, where they can show a habit of savings towards acquiring a land or developing a land they own.
Simply speaking, we know that cooperative means to work together to improve member’s economic condition. This organization is based on “all for each and each for all” So this organization will function under the mutual cooperative of all the members. In this organization, all member will be equal and free for their rights.
OBJECTIVE OF LEISURE COURT MULTIPURPOSE COOPERATIVE SOCIETY
The objective of the society is to promote the economic interest of its member and especially;
- Any other measures designed on co-operative principles to encourage among its members the spirit and practice of saving, mutual help, self-help and facilitate severance package for members.
- To raise capital through share holdings by members in the society to undertake such other activities as are necessary for the attainment of these objects.
- Receiving shares, deposits from members and paying dividends and/or interest respectively.
- Investing some of our collective monthly contributions regularly and distributing surplus annually as dividend on prorated basis.
- To provide credit facilities to members at fair and reasonable rates of interest for provident and productive purpose.
- To engage in cassava production, processing and general agricultural activities.
- To stock quality seeds, fertilizers and agricultural chemical for sale to members and non-members at reasonable price.
- To promote modern poultry keeping by individual or on group basic and to affordable prices.
- To acquire access of land for sale or farming activities or Estate development to meet the housing needs of members or for industrial purpose as a form of investment for the economic benefit of members.
The housing sector in Nigeria is definitely overdue for different disruptions, we need new and innovative ideas to take center stage. This one of a kind idea from stakeholders at Leisure Court Limited is a step in the right direction. This cooperative has the potential to usher in new and younger generations of Nigerians into the housing sector due to the ease of access it offers. This society is definitely one to look out for and a must for everyone interested in Nigeria’s housing sector.