Breaking the Housing Deficit Vicious Cycle

Housing Deficit in Nigeria: The Vicious Cycle

In the high-risk industries where HSSE (Health, Safety, Security and Environment) Management is sacrosanct. A System is used to investigate Near-misses and Accidents and it’s called ROOT CAUSE ANALYSIS. This system is quite effective in going beyond treating surface causes to eliminating the possibility of the accident from where it started, the Root Cause.

The Root cause has a characteristic of not being immediately evident, it has to be dug-out through deliberate and diligent search.

Much has been said about the housing deficit in Nigeria, it has been a persistent conversation and has even become politicized while the present government policies to tackle the menace just seem to scratch the surface with providing any solutions per se.

A typical example is the so called “Low-cost housing schemes” policies by the Federal Government. The Houses are built and the middle-low-income earners are expected to acquire this using mortgage. In reality this is not attainable, because;

The prices for these units rise as the high-net-worth individuals who desire to make a quick buck flipping properties use their cronies within the management of these schemes to acquire vast amounts for a resale in the secondary market. The few units that are left have to be jostled for the actual target market who are then faced with the unavailability of funding to pay for their equity contribution and the financial constraints of the Federal Mortgage Bank of Nigeria. And then the vicious cycle persists, the problem persists.

The aforementioned scenario is a microcosm of what is prevalent in the industry at large, in case you missed it in the narrative the root cause of the housing deficit in Nigeria is the systemic exclusion of the low-middle income earners from the Real Estate Industry.

This exclusion rears its head in several ways, but the two prominent ones are;

  1. The inability for the low-middle income social class to grow wealth through the real estate sector due to High Entry Points
  2. Unavailability of Funding for counterpart contribution to access Mortgage

This exclusion and the access to flexible funding for real estate development due to the dependence of the real estate industry on the few High-Net worth individuals and the unwilling finance are responsible for the ever Housing Deficit and it is a vicious cycle that can only be interrupted by a means to get the vast middle-low class in Nigeria to participate in the Real Estate Industry.

This is what REIC from HXAfrica is achieving, REIC is tackling not just the high-entry point by splitting real estate investment into affordable bits but providing a means to exchange their “bits” to cash at any time at the touch of a button



Real estate like any other discipline or field has its own fair share of lingo and if you’re looking to invest in real estate? Or are you curious and trying to navigate the world of real estate? Then this article is for you.


This is the agent who represents the seller in the home-buying process. 


A real estate agent or broker that operates on behalf of a client buyer to help them find and purchase a property.


This is a meeting which completes the sale of a property. The final documents are signed by both the buyer and sellers. The buyer makes a down payment and pays all closing costs.


 This refers to the initial price offered by a prospective buyer to the seller. The seller then has three options: accepting the offer, rejecting it or countering with a different offer.


This is the best method for property sellers to ascertain the current value of their property so they can select the best sale price. It is the term real estate agents use when they conduct an in-depth analysis of a property’s worth in the current market.


Escrow is a legal arrangement in which a third party temporarily holds money or property until a particular condition has been met (such as the fulfillment of a purchase agreement).


Real estate agents will often refer to homes for sale on the market as listings. These listings include basic information about the home for sale, such as the price, number of bedrooms and square footage.


A deposit made by the potential property buyer to show that they are serious about buying the property.


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.


This is a Latin phrase found in contract law which means “buyer beware”.  It is a way of alerting prospective buyers that the ownership or interests in a property are in question, unclear or subject to litigation.



Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world

 – Franklin D. Roosevelt, U.S. president

Building wealth with real estate isn’t solely designed for the wealthy with deep pockets, it is open to anyone who is ready and willing to. Investment can seem like a daunting idea but done right, real estate investing can prove to be a  lucrative income stream. Intentionally done, investors can enjoy predictable cash flow, excellent returns, and portfolio diversification—and it’s possible to leverage real estate to build wealth. 


You don’t have to be a specific type of person or have a particular financial status to invest in real estate. If you desire to grow and diversify your investment portfolio and enjoy cash flow, you should invest in real estate. You can be:

  • An investor looking to diversify their investments
  • Anyone looking to start investing
  • An existing investor looking for cash flow


Many new investors don’t know where or how to invest in real estate and this can lead a lot of people to avoid real estate investments because they think they are scary or need a lot of money to invest. However, with the right guidance and direction, anyone can begin the journey into real estate investment. Here are four ways you can invest in real estate this year:

1. Rental properties 

Investing in rental properties like land ownership is one of the oldest real estate investments. It’s quite simple: You purchase a property and then rent it out to tenants. However, the property maintenance costs are your responsibility as the landlord. It can be a lucrative business for those who want a hands-on approach, and who are patient enough to manage tenants. Although this strategy does not require significant capital, it does require substantial funds to cover the maintenance costs and to cover vacant months.

2. House flipping

Some people take it a step further, by buying houses to renovate and resell. Although it requires a substantial amount of time and capital it also has the potential to produce the biggest gains. To be a successful flipper, you should always be prepared for unforeseen challenges, budget increases, time-inducing mistakes, a longer renovation timeline, and even issues selling on the market. The process of flipping houses usually requires extensive real estate experience, marketing, and renovation which makes it a better option for experienced investors looking to diversify. Another option is to find a partner who has experience in real estate. You could have the capital or time to contribute and find a contractor who is good at estimating expenses or managing the project.

3. Real Estate Investment Club (REIC)

REIC is ideal for people who want an opportunity to leverage their relationships to build wealth through real estate investments with friends, colleagues, associates, and family and is targeted to also serve people across all income brackets; from low to high-income earners. This can be done by acquiring property together or forming a syndicate to sponsor viable real estate projects. Leveraging on such relationships will give you safety in decision-making and the opportunity to approach projects or property that hitherto seems out of reach.

As an investor with REIC, you are in control, with all transactions decentralized and run digitally leveraging blockchain technology. Even more importantly, investors will be able to liquidate their stakes through a tokenized system. What this means is that, instead of waiting for your investment to reach full maturity, you can sell and transfer your stake to another user at an agreed-upon price. If this sounds like something you or someone you know might be interested in, click HERE for more details.

4. Property Development

Property development is a very capital-intensive investment. In this case, properties are acquired in choice locations, and then redeveloped into other properties or structures such as office spaces, apartment buildings, commercial structures, etc., and then sold at a really high-profit margin. It is important to note that location plays a key role when considering property development.

There are many ways to approach real estate investment even beyond the above examples. As with any investment, there are a lot of prospects in the real estate sector, however, you should ensure you take careful steps and decisions, carry out extensive research, and weigh out the costs and benefits before taking any action. Want to take the hassle of this off your shoulders? Then let us help you find the best way for you to enter the real estate market. Send us an email and let’s get you started!