“Owning a home is a keystone of wealth — both financial affluence and emotional security.” – Suze Orman
Putting a roof over your family’s head is one of the most important things to do and if you’re like most Nigerians, you’re probably renting and you’re probably looking to transition from renting to owning a house. The most ideal way to provide shelter is to own your home because renting is basically making use of space for a specified time period.
There are cases where renting is ideal but if you intend on settling in a state or a particular location for at least five years, then buying your own home is a better and in the long-run a cheaper deal. The primary reason for this is, houses generally appreciate in value with time while money spent on rents can’t be recovered or attract any value appreciation.
Here are a few tips to help you shift from renting to owning a home:
Keep a leech on your savings
One of the main reason most people don’t own homes is, they’re unable to afford it. There’s really no beating around the bush when it comes to buying a house, if you can’t pay a down payment, your finances are probably not stable enough to own a home. However, your financial state is never permanent. Through discipline to save more or seeking extra ways of earning more money, you can buy your dream home.
Here are a few tips to get you started:
- Set precise saving goals.
- Take note of all expenses including the seemingly minute ones.
- Take up extra work to earn more.
- Consider cutting down on the amount you currently spend on rent. For a family looking to buy a house, renting a relatively cheaper house would help save extra cash needed for your down payment.
Keep Your mind on your Long-Term vision
Thinking long-term helps you make better decisions as most of your energy would be directed at attaining your end results. While you save towards your goal, devote your time into making all the necessary decisions to help you choose which house to buy. Keep in mind the following:
Choose your location carefully. It’s always better to move to a developing area rather than a declining or saturated area. The reason is, a developing area offers better economic opportunities and would likely attract high-value appreciation compared to an area that has reached its peak. A good example of this is, deciding to buy a house in Surulere or Sangotedo. All things being constant, a house in Sangotedo is more likely to attract higher value appreciation than a house at Surulere. The rule of thumb is, when purchasing a home, access its profitability suppose you resell it in a couple of years.
In addition, consider other long-term issues like schools available in the area, hospitals, shopping centres, location in relation to traffic, all these would help you assess how convenient it would be for your family down the line.
Budget for additional Total Expenses
A down payment or monthly mortgage payment isn’t the only things you’d need to consider when buying a house. Buying a house is committing yourself to cater for extra expenses like renovations, maintenance, insurance, taxes and utility bills.
In order not to end up overwhelmed with bills, ensure you make room for extra expenses.
Rule-of-thumb: Assume that you’ll spend 1% of your purchase price annually on maintenance.
Why? Your house has a lot of moving parts and unlike renting, where you can call the landlord, you’re your own landlord. Of course, this is just an estimate. How much you’d really spend on maintenance and bills depend on factors like; how much you consume in terms of utility rates, climate, age and the condition of the property.
Renting is much more expensive than buying a home
In the long-run, the total cost of renting would likely be significantly higher than buying or even mortgaging. In Lagos, for instance where housing prices are high, the cost of renting for five years or even less than can be used as a down payment for a house (depending on the neighbourhood).
Quick tip: calculate how much it would cost to pay a monthly mortgage on the average home in the neighbourhood of your choice in comparison to your current rent payments.
Of course, the best option will be to purchase outright if you’re financially capable rather than spread payment, as that in itself attracts some amount of interest. Buying upfront also helps you make substantial profits suppose you turn around and decide to sell the property.
Since you’re here …
We’ve got the best deal for you. Buying a house is a huge decision to make. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention they cost m. Let’s narrow it down for you. Rosewood Residences located in the heart of the Lekki Peninsula encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve:
- A home located within the urban area of Lekki
- 24/7 electricity and water supply
- Ample, underground parking space
- A valid C of O
What’s more, we’ve got all these for you at the most affordable price possible. Call in today at 09081234564, 09095757575. Send us an email at email@example.com and let us give you the investment of a lifetime. So, why should you bother calling us today? …Because we understand what Home means to you.