At times, it could make a financial sense to buy a house instead of renting. Considering the affordability factor in finding the perfect housing, should young adults tie themselves down with a property? Whether to rent or to buy a house, it is a major decision that affects not only your financial state, but also your lifestyle. The two options both have their advantages and disadvantages depending on your situation
While your own financial capability can be the biggest factor of all when choosing whether to rent or buy a house, there are also a number of things that you have to consider in finding a home as follows.
Advantages of Renting
One of the main advantages with renting is that no maintenance is required. For example, if you need a plumber, you can easily call the landlord to arrange the repair for you. It is also easier to move. This means that you can switch to another house anytime, especially if you have an opportunity to relocate in the near future. There is also no guarantee that your home will increase in value over time. If you are renting, you can avoid owning a depreciating asset.
Disadvantages of Renting
Meanwhile, rent is rising in several cities. So, you may be facing an increasing rental fee in your monthly housing payment. With renting, you are not building equity or an asset that you can sell when you are ready to move. Another disadvantage is that you don’t receive tax benefits, in contrast to homeowners who can deduct their mortgage interest payments and their property taxes from their federal income tax. You also can’t paint or remodel the place that you are renting without the owner’s approval.
Advantages of Buying
While not everyone can or wants to be a homeowner, there are some financial advantages that can make becoming one enticing. Owning a house lets you build equity as homes historically increase in value. Even if your home doesn’t increase in value, you’re still building equity as you pay down your mortgage for as long as your home maintains its value.
You can also use your home as an investment, such as renting it out and generating income from it. And of course, you have the freedom to decorate your house anytime. This is one of the joys of being a homeowner.
Disadvantages of Buying
On the other hand, owning a house also has its share of disadvantages. First, you have to pay for your own maintenance fees to keep your home in good condition. Also, take note that your home is not a liquid asset. Meaning, you will not be able to sell it as quickly as possible for as much money as you want in case you decided to do so. Another thing to consider is the property tax which tends to go up, making your house less affordable. You might also use up your savings for a down payment, closing costs, and for other expenses as a homeowner.
Do you want to build your own house on a small budget? Are you willing to exercise a little discipline with your money? Building a house in Nigeria on a small budget may seem quite difficult due to the value of building materials, cost of labour and other construction costs. Below are helpful tips on how to build your dream house in Nigeria on your small budget.
Plan out your budget
The popular saying if you do fail to plan then you have planned to fail is quite applicable in building your house in Nigeria. To build a house on a small budget, you must plan every detail. You need to calculate the amount of cash you have available for building the house. Use this amount to allocate different cash price to items on your house building project. Items on the budget may include the cost of land, building materials, fixtures and furniture,labour cost, transportation of materials and professional fees.
Carry out a market survey compare the market value of different building materials and purchase the materials that are suitable for your budget only.
Keep it small and simple
Building a big house on a small budget is not realistic in any way. The bigger the house, the more money you have to spend. If you keep your house simple and you will be able to keep the budget slim. When you are building on a small budget, you may decide to give some rooms more finishing than others as better finishing for all the room means less money. Why not just have better finishing for a few rooms like the living room or bedroom?
You don’t need a marble finishing for your bathroom if you are building on a small budget instead you can settle for cheaper options like ceramic tiles.
Use the open floor plan
Fewer walls equal to less building materials which means you get to save your money. The open floor plan makes the visual connection between spaces feel larger. Ensure you use a good plan design to eliminate wasted space.
Monitor the building process
Don’t take anything for granted. Ensure you monitor the building process by yourself as. This is because so you can precisely verify if the materials and services you paid for are delivered.
Monitoring the building process is important in terms of not deviating unreasonably from the estimated cost and resources marked out for the construction project on the budget.
Look out for deals on fixtures
Buying fixtures and furniture for your interior should be done wisely. You may move in with the old fixtures or furniture you have currently and maybe after you must have moved in for a while you can then begin to change your fixtures and furniture when you have the money.
Try and write down what furniture or fixtures you NEED and then check the market or online for great deals or discounts. Compare prices and buy the necessary furniture that fits your budget.
Kindly share other helpful factors that assisted you while searching for your dream house with other readers.
Selecting a house either to buy or rent could be very tasking. Although you might rely on a real estate agent to show you around various properties, the house buying or renting process is still incomplete until you have decided on what type, specification, location or design of your dream house. The question here is: what do you want in a house? The following tips will guide you in answering the above question which will make the home buying or renting process easier for you and your agent alike. So, grab a pen and paper as we unravel the important factors to consider when searching for a property.
List your dream house specification
Ask yourself: if you want a single family home? What physical features best fits my family size? Would I prefer a large home with functional rooms like an office or a study? Would I prefer a small house with two bathrooms? Your answers will assist you to focus your house search into considering houses that are a better fit your needs
Pick a location
Your choice of location may be influenced by factors like electricity supply, access to road, security educational facilities, proximity to work, proximity to hospitals and many more factors. Location is a very important factor which you need to decide on having in mind that Nigeria in itself is a classed society; you should consider the various class distributions before you make a choice of your neighborhood. However, depending on who you are you might most likely consider how close it is to access your preferred recreational activities.
Make a realistic budget
Many times, it is important to consider the value of the house in question; it should be equal to your purchasing power. However, drawing a budget gives a clearer view of how best an agent can help you. This determines what choices an agent presents to you which later results in you selecting your ideal home.
Ensure that all facilities are in proper working condition. You can take a friend along so as to get an objective opinion of the inspected house. You must make sure you can see yourself living in the house.
Kindly share other helpful factors that assisted you while searching for your dream house with other readers.
There are some basic things you need to understand about real estate investment, this post would guide you to success in real estate investment.
- You don’t need all the money in your pocket to invest in real estate.
There is usually initial deposit where you get to pay in the course of a period, for landwey investment you have flexible payment plans.
- Instead of thinking affordability, think collaboration.
You can collaborate with your siblings, friends and so on to purchase a 600sqm land for instance, after a while sell it off or divide into two 300sqm each.
- Before investing in real estate, do a lot of research!
Know your location and ask a lot of questions like accessibility, go for site inspections, check online( search engines, social media, bureau of land and properties and so on)
- An unsuccessful venture doesn’t mean failure
Because you have been exploited or frauded doesn’t mean there are no credible realtors out there, that is why the previous point is key.
- When Buying into real estate, control is key
For property investments, once you’re done paying for the property and settling legal requirements, you directly own the asset and have virtually complete control over it. You can directly influence the asset worth (by adding value to it) and cash flow (increase rent)
- When investing in property, title is key
The land title is very key when acquiring land/properties. At Jimmick Limited all our properties are either CofO, Governors Consent, Gazette or Government Excision.
- Buy Land, keep acquiring more..
Real estate investment is a form of investment that when done right(i.e buying from a valid real estate company/realtor) its return on investment is enormous.
- A few years from now, you will be happy you did or wish you did!
Start your investment journey now contact us 08054727883, info@localhost
It is unwise to think you can’t be fooled in a real estate transaction while some sellers and buyers are quite honest, there can be some dishonest sellers, agents or buyers. The reality is that the trait of dishonesty is not written on anybody’s forehead instead many of this scammers are criminally minded folks who are taking advantage of the system. Scams in the real estate industry in Nigeria are real but real estate scams are not just a problem peculiar to Nigeria. It is a global issue and there are ways you can protect yourself against being a victim.
So the real question is: how do you know if you’re about to be scammed in a real estate transaction? The truth is you can’t know if you are about to be scammed but there are warning signs and tips you can take to protect yourself against the activities of scammers. Even if you are working with honest people, these are safe ways to approach buying, renting or selling any home.
Don’t rush the buying/renting process
It is quite possible to find a great deal and you most probably want to act quickly so you don’t lose the offer to someone else but the problem with rushing the buying or renting process is that you have little time to question the real estate transaction.
Step on the brakes of excitement and objectively analyse the deal if it seems to good to be true then it is advisable to step back from such transactions. It is better to be safe than sorry.
Verify the person you’re working with in the real estate transaction
Do not take whoever you are working with at face value ensure you do your research about that person. This is the digital age, check the person online, ask for referrals from other people and review their past works.
If your gut feeling tells you something is wrong with the person involved in the real estate transaction, then you need to step back do more research about that person. Don’t work with any person you have no confidence in.
Ensure to ask a lot of questions especially about any unclear issue about the real estate question. Ask the agent the reason for the sale? When there is not a reason for the sale, that can be a red flag. Questions are important because they help reveal inconsistencies in the real estate transactions.
If you spot any inconsistencies that cannot be reconciled then you need to rethink your involvement in the real estate transaction.
Avoid paying cash
If the homeowner or agent is asking you to pay in cash then you should tread carefully of that real estate transaction. The problem with paying in cash is that the money is not traceable unlike paying in a bank instead you insist on writing checks or paying at the bank as this means of payment does not leave you hanging dry if the transaction goes wrong.
You want to be able to hold someone liable when all is not what they seem; so be careful and avoid payments you can’t trace. If the agent or house owner is unyielding about paying in cash, then you need to step back immediately from that transaction.
Internet originating scams are not uncommon these days. All the advantages of the digital era have made our life a lot easier, however, they don’t come without harm. When you receive an email that seems suspicious, double check with your agent before taking any actions requested electronically.
Use a reliable source in your search for properties
Online property listing sources such as Jimmick Limited is a reputable platform to use in finding properties in Nigeria. It is advisable to make use of well know property agency so as not to be duped of one’s hard earned money.
Do you need real estate advise and investment opportunities you can trust? Why not contact us today, +2349096263676, +2348054727883 or info@localhost.