As one gets older in life, the desire to settle down and to build a family becomes stronger and unconsciously the decision of whether to buy or rent a home gradually creeps in.
This decision has been described as one of the most important financial decisions anyone will have to make in his or her early adulthood considering the consequent implication of either of them.
The truth is that making this crucial decision in Nigeria’s pricey real estate market is not an easy task for most people, as the cost of buying a home due to the absence of efficient mortgage facility often softens the interest of most intending home-buyers.
A recent report by Lamudi, a global property portal, investigated the costs of buying versus renting in a bid to help potential homeowners understand the advantages of taking responsibility.
According to the report, “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,” the report added.
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 on Investment (ROI) in order to make a wise decision. Investigate and contact experts on the market. Real estate agents or brokers are specialised 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.
ODINAKA MBONU
