Irrespective how good renting a house in Nigeria could be. The truth still remains that buying and owning one's personal home will always be more important and advantageous.
Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Yes, even in the current hot real estate market.
Renting – Advantages
Renting can have a few advantages depending on the part of the country you live in. The primary advantage is your monthly rent payment may be less than an equivalent mortgage. A secondary advantage is the fact that maintenance and improvements to the property are the responsibility of the landlord. Still, these advantages pale in comparison to the disadvantages of renting.
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Renting – Disadvantages
The disadvantages of renting are significant. If you have any opportunity to purchase a home or condominium, it almost always makes sense to do so.
The biggest disadvantage of renting is the loss of value. Let say you rent a residence for #400,000 a year and you live in the residence for 5 years. You will have paid a total of #2,000,000 in rent, a pure expenditure. The 2,000,000 is simply gone and you will have nothing to show for it other than the time you spent in the home. Compare this to what your landlord has gained.
Rent payments are closely aligned with a landlord’s mortgage payment. Using the above example, lets assume your #400,000 rent exactly equals the mortgage payment. For 5 years, you have indirectly paid the landlord’s mortgage, helping them build equity in the house by paying down the loan. In addition, the landlord has benefited from the appreciation of the property.
READ ALSO: FIVE reasons why you should buy a house instead of a rent in Nigeria
Now, what would have happened if you had purchased a similar home with similar financial figures? You would have seen an increase in YOUR wealth, not the landlord’s wealth.
What I'm saying in actual fact is that, if you have the power to pay a rent for many years with 400000 annual payment, then it is advisable that you take a mortgage, buy a house and pay in installment.
If you are renting, you should be out shopping for your own property. After all, isn’t it time to make your money work for you, not a landlord?
On this note, Let me introduce to you the home series of Adronhomes and properties.
With these home series based on your specifications and location, you stand the chance to spread your house payment withing 5 years. Making you your very own Landlord.
You can actually save yourself of the stress of Landlord rules and wahala.
For more Enquiries/Consultation/Investment purpose; Contact Me