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Should I buy or rent?

One of the biggest decisions that anyone can make in their life is to purchase a home. Some wonder if the decision to purchase is the right decision for them since the average person changes their mind regarding their decision every now and then.

Purchasing a home has many benefits, likewise renting too- leaving many people to  wonder if purchasing a home is the best option for them, while others consider renting to be a better option for them.

The best way to know whether buying or renting is the better option; the individual must look at their situation in order to make the right decision and in doing so, we will be helping you clear this ancient dilemma by looking at the benefits accompanied with both buying and renting a place for living. We believe getting a home isn’t a competition (except when it is solely for business), it all depends on your standing whether you can buy or rent.

SOME BENEFITS AND CHALLENGES ASSOCIATED WITH BUYING A HOME

  • Total control of the property: The buyer of a property has the personal freedom by being able to redecorate, remodel, or make improvements as they see fit as they experience little or no restrictions.
  • The acquisition of the home is considered a capital gain as land/real estate appreciates in value.
  • In buying a home, you are responsible for a number of payments other than the possible mortgage payment; there are also taxes, insurance, maintenance and repairs to be concerned with as well as dues from the “Homeowner’s Association” of such area to consider.
  • The flexibility/mobility of the buyer is greatly reduced, you know… after buying a home, the consideration of choosing a new job in another town is highly influenced.
  • In as much real estate increases in value, market prices fluctuate; we mean the sudden or slow appreciation or in some rare cases depreciation of the property value depends on a number of factors such as when the home was bought (was it during a boom period), where the property is located, the current structural integrity of the building (is it well maintained?) etc.  The property may not appreciate at the rate the buyer anticipates, and if all odds are against him/her, the home owner may end up with no profit when selling.

SOME BENEFITS AND CHALLENGES ASSOCIATED WITH RENTING A HOME.

  • When compared to buying a home, the initial investment to rent a home or apartment is quite low as to buy at times might require about 15-30 times the amount that is used to rent; likewise as renting costs less money, the funds that would normally be used toward a down payment or higher mortgage payments can be invested into savings accounts that could give higher returns.
  • The tenant has limited responsibility because they do not have to take care if not all of the repairs as the landlord is responsible for these tasks.
  • Renting may facilitate easier budgeting. Rent is an amount that is fixed and may even include some utility bills in some cases in its rental amount and naturally a fixed amount can allow the tenant to set a budget easier because the cost is set.
  • The tenant has more mobility and flexibility to move since leases tend to be short-term.
  • Insurance costs are lower because the tenants only needs to insure their items not the structure itself.
  • Despite the benefits, the tenant literally still dances to the tune of his landlord, therefore it’s advisable to always ask and know what the lease can and cannot do before signing to fully understand the living arrangements.
  • The tenant should know and understand how to protect his/her personal belonging by inspecting the security measures in place as the property wasn’t made to their specific standards and this can be done before signing any agreement by taking a walk-through the property.
  • Renting has a much lower “Family stability” potential when compared to buying a home as anything can change.

Should I Buy Or Rent? part 2

There are two major factors to consider as briefly explained in the flowchart above which are:

  • Level of financial stability: Buying a home is one thing but maintenance other forms of payments that comes with it, is another ball game entirely.
  • How long you plan to stay: If you plan on staying for anything 5 years below, buying a home shouldn’t be an option as most cases suggest that most persons that end up buying a home, get one in view of starting a family.

Other minor factors include: Age, Job status, neighborhood, cultural/societal beliefs, gender views, the current real estate and mortgage market etc.

Affordability must be taken into consideration when deciding to buy or rent, irrespective of the plans of a person to stay in a home for a long time, the former is always the main determinant.

There was a time in recent history when buying a home was the benchmark for financial success, but irrespective of this, If you’re deciding whether to rent or buy, the first thing you should do is self-assessment and concise consideration of your future plans. Then tune out other people’s advice; by self-assessment we mean in terms of understanding that some things occur with one’s life stage; an average individual in his/her early twenties wanting to buy a home, might be a lot to ask as he/she might need to borrow money just to keep up with monthly expenses; exerting constraint on him/her; unless you’re confident we’ll advise you’ll rent your home for at least four to five years.

As we stated earlier, we believe buying a home isn’t a competition or a sport, it all depends on your current financial and psychological standing whether you can buy or should continue renting till you can afford one.

We hope this could provide room for a clearer thought, but if you’d looking for an affordable home to buy or rent anywhere in Lagos, we can be your plug; or you just want to talk to us about anything real estate; Contact us today @abodeslagos on Facebook, Instagram and Twitter or give us a call on +2348154280575, +2348023624714.

STEPS TO BUYING A HOUSE: THINGS TO LOOK OUT FOR DURING INSPECTION AND IMPORTANT QUESTIONS TO ASK.

Buying a home is an important phase in one’s life, that’s why buying the right home is quite a delicate matter when considered; apparently, like any area of personal finance, there’s no big secret to buying a house — but it does involve thinking differently and acting right than most people. Most of us want to own a home but the problem is we can get so eager to own a home, and that we start to compromise on things that are important—really important.

Today we would be discussing the steps to buying that dream home of yours, fully understanding major things to never compromise and the questions to ask:

  1. Start your research early on your local markets: As soon as you can, start checking out websites such as Abodeslagos.com, newspapers, and magazines that have real estate listings; take note of particular homes you are interested in and see how long they stay on the market, likewise observing any changes in asking prices as this will give you a sense of the housing trends in specific areas.
  2. Check your personal finances to determine how much you can afford for an apartment, while listing priorities in terms of each house facilities.
  3. Check in with your Mortgage bank to get pre-approved for credit facilities, we have quite a number of banks in Nigeria that provide such services.
  4. Contact Abodes Lagos as your agent: Real estate agents are important partners when it comes to one buying or selling a home and Abodes Lagos being the best and most trusted in Lagos, we provide you with priceless hacks on homes and neighborhoods that you are not likely to come across out there. Our knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in (our Lagos) has been proven to be extremely valuable to all our clients both existing and new customer. And guess what, best of all, it doesn’t cost you anything to use us  as your agent as we are compensated at deal closure.
  5. Handle Inspections and make an offer: Now, when you begin touring homes with your real estate agent, you may be focused on the size of the yard or the square footage of the kitchen, but there are other attributes to a home that are even more important to consider when handling inspections, specific things to look out for and questions that you need to ask as a buyer include:
  • Roof condition
  • Signs of foundational damage: if the foundation of a home is damaged, you are looking at probably hundreds of thousands of Naira in repairs. Look for signs of cracking near the foundation inside and outside the home and pay attention to the grade of the floors for signs of unevenness, which may indicate a sinking of the foundation.
  • Potential for flooding
  • Mold, weathering and water damage: Take a peek inside the cabinetry for signs of mold growth around pipes. Mold growth may indicate a leaky plumbing system, previous flooding or improper ventilation. You should also look for other signs of water damage and excessive weathering, such as musty odors or peeling paint
  • Insulation and energy efficiency: The better the insulation of a house is, the less you will have to spend on utility costs when it comes to heating and cooling throughout the year.
  • Documentation: You don’t want to be caught in-between lawsuits over properties with injunctions or any form of legal dispute for that matter, a proper legal investigation needs to be carried out. But Hey! Stress not…. Our legal team is always at your disposal.
  • General structural integrity and reliability; look out for piping networks, sewage disposal, wiring… just to make sure all is in accord.

You’ll want to be certain that you are making a good investment when you purchase a home, so you should avoid those with major problems as they will need costly repairs shortly after you make your purchase, which wouldn’t be good for you.

The other aspect are the questions that are not to be forsaken during an inspection which are:

  • Are there any ongoing maintenance issues?
  • How much do utilities cost on average?
  • What’s the neighborhood like?
  • Is the insulation in good shape? Simply means is the house well ventilated.
  • Are there any upcoming replacement needs?

As easy and straight forward these questions are, they are extremely crucial in the decision making in one buying a home; however, there is a mistake most people make which is neglecting structural integrity for aesthetics. Painting your new house can be considered an act of basic remodeling but when it overrides the fact that an apartment is actually a great investment, it could be a huge loss to such a buyer. We advise always taking a double inspection of a place as a second visit is usually considered important.

Buying a home is important, even though one reaches a financial place where you can buy a house, one might buy a house he/she is not going to be happy about.

At Abodes Lagos, your satisfaction is our top priority, and we believe that there will be tight schedules in play for most of our clients, that’s why our team performs what we call a pre-inspection of all facilities and properties before you – our esteemed client –  can come in for inspections, to make sure what we say is what you get.

For all your real estate concerns and enquiries kindly contact us today on +2348154280575, +2348023624714 and be sure to get a prompt response as we’ll love to entertain your questions.

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