As you get older the desire to settle down and to build a family becomes stronger. Deciding whether to buy or to rent is one of the most important financial decisions you have to take in your early adulthood.
But entering the real estate market is not easy and many people do not know what expenses they will face. The costs of buying are varied, more complicated and act as a deterrent.
Global property portal Lamudi.com.ng investigates the costs of buying versus renting and aims to help potential homeowners understand the advantages of taking responsibility.
The calculation of living costs when renting are without a doubt much easier because you do not need to worry about costs such as: maintenance, renovation, repairs and fees. Especially young adults would rather rent than buy, because they are more flexible and do not know what they will be doing in 10 years or even where they will be doing it.
They want to have the option to move places, spend their money going out or to travel. Paying a monthly rent and not facing financial responsibility such as: house taxes, insurance and mortgages suits their lifestyle more. Not knowing what the future holds and how to invest is what keeps them from investing into their own home.
When speaking to real estate agents, they will always advise you to consider buying, because you do not want to pay the loan for someone else’s house. Nearly no one on the market finances properties on their own. You purchase with the help of credit capital a real value (real estate) and repay the debt by taking tax advantages and rental income.
The most important thing as a future landlord is to know your financials and how to calculate the return of investment (ROI) in order to make a wise decision. Investigate and contact experts on the market. Real estate agents or brokers are specialized to guide you and help to make a wise and viable decision.
What makes investing in property one of the safest investments is that real values are inflation resistant. The risk of the inflation rate to rise is constant, meaning that you will get less for your money. People will always need to have a roof over their heads.
In 10 years you will probably get less space for the same amount you pay at the moment. Investing in property value (real value), away from rent, can be very profitable. With the time the value increases – known as capital growth. They also offer high security, inflation protection, tax benefits, ROI and a source of income in old age.
Once you have purchased a property you will feel the pride of ownership and the freedom coming with it. If you are still confused or need further advice on buying a property in Nigeria then why not Lamudi
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