The pursuit of homeownership is a financial and life milestone that resonates with every hardworking professional in Nigeria. In today’s dynamic realities of economic vulnerabilities and uncertainties, Additional Voluntary Contributions (AVCs) by the PENCOM have emerged as a versatile financial tool, offering professionals the means to fund their dream homes.

Understanding Additional Voluntary Contributions (AVCs)

AVCs, are voluntary contributions made by employees or self-employed professionals to their mandatory monthly pension contributions. The Pension Reform Act of 2014 in Nigeria empowers contributors to allocate a portion of their AVCs to various investment funds, including real estate investment funds. This flexibility becomes the foundation for professionals to tailor their investments to align with their long-term financial goals.

Getting the AVCs to work for you.

1. Flexible Investment Options:

AVCs allow you to diversify your investment portfolios, including allocating funds to real estate investment. This flexibility enables you to align your financial strategies with homeownership objectives, fostering a personalized approach to wealth accumulation.

2. Wealth Accumulation for Mortgage Down Payment:

Consistent contributions to AVCs enables you to accumulate substantial savings over time. By earmarking some of these funds for a mortgage down payment as a contributor, you can mitigate the financial strain typically associated with traditional down payments, making the dream of homeownership a more realistic pursuit.

3. Tax Benefits

The tax advantages associated with AVCs add a layer of financial appeal for professionals. Contributions to AVCs are tax-deductible, offering immediate tax relief. This tax efficiency boosts disposable income and allows you to redirect additional funds toward mortgage payments or other homeownership-related expenses. 

4. Potential for Loan Collateral 

This is where it also gets creamier. As the value of your AVCs grows, you may explore opportunities to leverage these contributions as collateral for mortgage loans. The secure and appreciating nature of a well-managed AVC fund may incentivize lenders to provide favorable loan terms, enhancing the feasibility of securing a mortgage.

5. Inflation Hedge and Long-Term Growth

Historically proven as a hedge against inflation and a source of long-term growth, real estate becomes an attractive avenue for AVC allocations. You can benefit from appreciating property values, substantially boosting your ability to fund a mortgage and build lasting wealth.

6. Strategic Asset Allocation

As a contributor, you can use strategic asset allocation within AVCs, balancing risk and return to optimize your portfolios for both retirement and homeownership objectives. This approach allows you to navigate market fluctuations while maintaining a steady trajectory toward your financial goals.

Ready To Get Started?

If you are a professional willing to leverage Additional Voluntary Contributions (AVCs) for Mortgage, reach out to our dedicated team on 02-01-2800800/ 07007367873 or send email to info@leadway-pensure.com