A PARADIGM SHIFT IN VACATION PROPERTY OWNERSHIP IN NIGERIA

The Nigerians in Diaspora currently have the following options availiable when it comes to vacationing in Nigeria. Staying with family or friend(s), build their vacation home from scratch, purchase an already built residence, lodge in a suite or a hotel, rent a home/flat for the year and/or rent a short term let for their staying period. With every option comes its pros and cons. Here are some of the pros: staying with family or friend(s) is the most common and a great way to bond with extended families/friends and usually the cost is negligible to the visitor(s). Building or buying a vacation home on Lagos Island can cost about $150,000 plus, not to mention the rigors and the hassle of building in general. Renting a home or a flat will cost about $8,000 per year and short term lets will run about $200 plus per day for a two bedroom flat. Lodging a 3-5 star hotel will cost about $350 - $500 plus per night. Renting gives one the guarantee to use a property for an agreed period. Cons: staying with family and friends usual eliminates the ability to have private moments with the visitor, their spouse and/or children. It can sometimes become burdensome and costly to the host(s), depending on the length of stay and the number of visitors. Building or buying a building outright, ties up a lot of leverage able funds on your vacation home. Moreover, owners have to worry about maintenance hassles, securing your investment while the owner(s) are not there 9/10 months out of the year and that is if one goes to Nigeria in a particular year. Rental agreements in Nigeria currently require a 2 – 3 years commitment upfront which can cost $16,000 to $24,000 plus, depending on location. With renting a house or a flat, the renter does not own the property, however, the renter will still need to buy furniture and maybe infuse some money into customizing the house/apartment to their taste. With a short term let and hotels, furnishings are provided for use. However, with renting, short term lets and hotels the clients do not have the benefit of ownership or resale at the end of the rental or lease.

TIMESHARE offers people the opportunity to purchase time at fully furnished vacation accommodations - usually in weekly increments - for a fraction of the cost of full vacation home ownership. The concept is said to have started in the late 1960’s in south of France and expanded to Europe and the United states in the early 70’s. In the United States, it is estimated that 2-3% of its residence owns a timeshared vacation home and of these about 80.3% express satisfaction with their ownership. The underline concept is to sell a set number of week(s) to vacationers of a mid to high-end resort and its amenities at an affordable price. When one purchases a timeshare, they choose not only a set location but also a specific week or two that will be used as their vacation home every year. The average timeshare has a community pool and some common areas. Timeshares are sold fully furnished and the quality of furnishings depends on individual development. In most timeshares, the owners are responsible for their own housekeeping and unit upkeep during your stay. Timeshares are located in highly-desirable resort areas. Prices vary greatly but are typically lower than fractional ownership prices because owners can only purchase one or two weeks of usage. A timeshare owner have the option of renting out their timeshare to someone of their own choosing or placing it in a rental program if they decide not to use it during your allotted week. If the owner participates in the rental program, they will split the revenue generated with the property’s management company. Remember, the owners are only renting out the one or two weeks per year that they own. (1)(2)

FRACTIONAL OWNERSHIP is an actual, deeded interest (usually 1/4 to 1/13): An owner can sell it, leave it in their will, and put it in a trust, almost anything an owner can do with a normal deeded property they can do with a fractional ownership property. Fractional ownership typically offers extensive amenities, ranging from a lavish clubhouse and spa to five-star hotel services that would not be available with wholly-owned vacation homes or timeshares, fractional ownership properties maybe an attractive trade-off for increasing numbers of vacationers.  Additional amenities offered may include: airport pick-ups, spas, grocery restocking, restaurant reservations and more. Based on the size, amenities and location of individual properties, the price for a fractional ownership varies greatly. A typical price range may be $100,000-$500,000 for an upscale luxury homes that would cost two to five times as much if purchased outright as wholly-owned vacation home. Typically, owner pays a one-time purchase price plus a yearly maintenance fee that covers all of the expenses associated with property ownership and its use and services. (3)

NIGUS PROPERTIES has taken the fractional ownership and timeshare concept, more so the fractional ownership and customized further to create its model in order to fit the Nigerians in the Diaspora and the uniqueness of the Nigerian market. Nigus believes that the Nigerian’s in Diaspora would like to have the same standard of living while vacating in Nigeria as they have in the western world, where they currently reside. Additionally, they expect services similar to3/5 star hotels at affordable prices, security and the rights of ownership. Owners pay an annual maintenance costs are share by all owners and supervised by Nigus properties, freeing the owners from the worry, hassles and inconvenience of owning a vacation home. The following are some benefits associated with owning a Nigus Properties fractional home:

FLEXIBILITY IN USE

§         An owner can choose a set location and a specific four weeks that can be used at their vacation home.

§         If an owner purchases a year round exclusive residence, they have flexibility to use their unit whenever they want 365 days per year.

§         Owners can exchange their owned unit and time with other residence and in the future will be able to exchange with other Nigus affiliates.

AMENITIES

§         There are many amenities that an owner will find at a Nigus Property development, modern full size kitchen and bathrooms, state-of-the-art exercise facility, a lounge, a pool, a state-of-the-art exercise facility, available on-site car rentals and drivers, Au-pair services, maid services, high speed internet access, courtesy in country mobile phones, an extensive DVD, games and audio library and  much more.

FURNISHINGS

§         Nigus Properties units are sold fully furnished with high-end furniture, appliances and fixtures selected by professional interior designers and decorators.

SERVICES

§         Owners get a weekly housekeeping and can request for a daily housekeeping service. They have access to on-demand room services that are available, on-site and airport concierge services, grocery stocking and restocking, maintenance services, restaurant reservations, airport pick-ups, check-in services. Nigus employees are the consummate professionals when it comes to customer service.

LOCATION

§         Nigus Properties are scheduled to be located in highly-desirable areas across Nigeria, starting in Lekki Phase I, Lagos Island. These locations are chosen based on ease of accessibility, security of environment and close proximity to tourism zones.

PRICE

§         Prices currently start at $17,000 for a two bedroom condominium for four weeks of use per year.

§         Year round occupancy starts at $234,000.00 for a two bedroom condominium.

§         Owners receive a special deeded ownership to the property they purchase.

RENTAL INCOME POTENTIAL

§         An owner can rent out their portion of unit ownership when they are not occupying it, whether it’s for one night, 28 days or 365 days.

§         Owners can place their unit into the Nigus Properties management’s rental program and receive 67% of the revenue that is generated and this can help the owner offset their maintenance cost and loan.

POTENTIAL APPRECIATION

§         The fraction ownership concept is a very new type of property investment in Nigeria and Nigus Properties is on the forefront of this change. The supply is very small and demand is currently high and growing, which contributes to rapid and significant appreciation. Another factor to keep in mind when reselling a Nigus Special deed is that the owners are selling not only the actual unit but also the luxury lifestyle that comes with an amenity-filled, high-service property.

§         Owners can pass on to their heirs their special deed(s).

Adey Harris, Jr. is the President & CEO of Nigus Properties LLC., where they continuously strive to bring quality to better living to everyone. Nigus properties is incorporated and head office is located in Houston, Texas with a registered satellite office in Lagos Nigeria. For more information on becoming an owner – visit their website at www.nigusproperties.com or call Nigus Properties directly at 713-589-9402 or 888-884-9522.

Sources:

(1)     http://www.vacationtimesharerentals.com/timeshare.asp

(2)     Joel Greene - http://www.CondoHotelCenter.com.

(3)     http://www.jennifermackay.com/fractionalownership.php