{"id":1924,"date":"2023-03-15T14:52:54","date_gmt":"2023-03-15T14:52:54","guid":{"rendered":"https:\/\/www.thinkmint.ng\/buyrealestate\/?p=1924"},"modified":"2023-03-15T14:54:09","modified_gmt":"2023-03-15T14:54:09","slug":"10-real-estate-terms-to-know-when-buying-your-first-property","status":"publish","type":"post","link":"https:\/\/www.thinkmint.ng\/buyrealestate\/10-real-estate-terms-to-know-when-buying-your-first-property\/","title":{"rendered":"10 Real Estate Terms to know when buying your first property"},"content":{"rendered":"

When buying a property, either for the first time or as a seasoned investor, there are real estate terms you would come across at different times during your purchase journey. Having a comprehensive grasp of these real estate terms would establish you as a smart buyer with in-depth knowledge of the industry and would also improve the entire experience for you. This glossary of real estate terms are alphabetically organized for you to make reference to on-the-go.<\/span><\/p>\n

Appreciation \u2013<\/b> This is how much your house increases in value over time. A lot of factors can affect this increase including Building improvements, Housing demand in the area, Government Regulations, Project Constructions, and inflation.\u00a0<\/span><\/p>\n

For example, In Lagos, Land value in Epe is continually increasing due to proposed projects in the area. Notably – The New International Airport along Lekki-Epe Expressway. Property value in the area is set to increase by 50% before 2024. Key into early sales with <\/span>Ashborne Gardens<\/span><\/a> and <\/span>Martel Grandiose<\/span><\/a>.<\/span><\/p>\n

Certificate of Occupancy \u2013 <\/b>A Certificate of Occupancy is a legal document issued by the government that proves that a person owns land in Nigeria. The Government reserves the right to seize any plot of land or property without a C of O at any time without any compensation paid.<\/span><\/p>\n

The purpose of obtaining a certificate of occupancy is to establish that the house or building is in a livable condition according to the law. Such a certificate is usually required to occupy the facility on a daily basis, to sign a contract to sell it and to close a mortgage on the property.<\/span><\/p>\n

Debt-to-Income Ratio \u2013<\/b> DTI ratio compares a person\u2019s gross monthly income to their total monthly payments. It\u2019s calculated as a percentage and used by lenders to determine whether someone is qualified for a loan. A low DTI is considered less risky while a high DTI is riskier, and therefore makes the person less attractive to lenders.<\/span><\/p>\n

Down-Payment \u2013<\/b> A down payment is the amount of money that a buyer has saved to help fund the purchase of a home. This amount is usually given as a percentage of the total of the home\u2019s purchase price. For example, a common down payment amount is 20 percent, which means the buyer will be paying 20 percent of the total purchase price upfront.<\/span><\/p>\n

Equity \u2013<\/b> Equity is the percentage of a home that a buyer actually owns. Until the mortgage is paid off in full, the lending institution has a stake in the property. For example, if a buyer puts down N4,000,000 on a home priced at N20,000,000, they have 20% equity in the home. Equity increases as the buyer pays off the mortgage.<\/span><\/p>\n

Lien \u2013<\/b> A lien is any legal claim upon a property for a debt or a non-monetary interest in the property. A lien is a security interest that can give a creditor the right to take possession of a property secured by a loan, such as a mortgage, when the borrower defaults on the loan obligations.\u00a0<\/span><\/p>\n

NHF Loan \u2013<\/b> National Housing Fund (NHF) is a Federal Government scheme, which entitles all Nigerians above the age of 21 years in paid employment to a low interest, government funded loan. Members of the scheme contribute 2.5% of their monthly salary to the fund through the Federal Mortgage Bank of Nigeria. The maximum amount obtainable under the NHF is N15 million. The borrowed capital is repayable over a maximum of 30 years at the rate of 6% interest.<\/span><\/p>\n

Off Plan Property \u2013<\/b> Off-plan buying basically refers to buying into a property before its completion. Buying off-plan is a great way to purchase a property below its actual market value, which makes it a great investment opportunity. There are many benefits of buying off-plan property as an investment, such as below-market value prices and a better choice of units.\u00a0<\/span><\/p>\n

Property Inspection \u2013<\/b> A <\/span>Property Inspection<\/span><\/a> is a detailed and systematic visual inspection of the property, its structures, design and fixtures that will provide a transparent understanding of the property’s vital signs and condition as observed on the inspection date.<\/span><\/p>\n

A property inspection is carried out to check out the condition of the property before proceeding to purchase a property.\u00a0<\/span><\/p>\n

Title Search \u2013<\/b> The process of searching through public records to ensure that the seller of a property has lawful ownership of it. A title search can uncover possible deficiencies or defects in ownership that could greatly impact a real estate transaction.<\/span><\/p>\n

Looking to buy your first home with a flexible payment plan or NHF Mortgage Loan? Thinkmint Nigeria connects you with the best properties in the market with great financing options to suit your needs. <\/span>Find your dream home here.<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

When buying a property, either for the first time or as a seasoned investor, there are real estate terms you would come across at different times during your purchase journey. Having a comprehensive grasp of these real estate terms would establish you as a smart buyer with in-depth knowledge of the industry and would also […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55,54],"tags":[518,519,517],"class_list":["post-1924","post","type-post","status-publish","format-standard","hentry","category-blog","category-our-blog","tag-first-time-homebuyer","tag-homeownership","tag-real-estate-terms","entry"],"yoast_head":"\n10 Real Estate Terms to know when buying your first property - Buy Real Estate %<\/title>\n<meta name=\"description\" content=\"When buying a property, either for the first time or as a seasoned investor, there are real estate terms you would come across\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thinkmint.ng\/buyrealestate\/10-real-estate-terms-to-know-when-buying-your-first-property\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 Real Estate Terms to know when buying your first property - 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