Advantages of Owning a Home
For many people, owning
a home is the fulfillment of a dream. For others, it is their worst nightmare.
Purchasing a home is one of the biggest financial decisions you will make in
your life. So, before you decide to buy, carefully consider the pros and cons
of home ownership.
When you think about buying a home, many questions will come to mind. Do
I really need to buy a home? Is my income going to grow? Will I stay in a home
long enough to benefit from the purchase? Have I got enough money saved? Am I
ready for the responsibility? Buying a home is a major financial move, so
you’re wise to look carefully at the positive and negative aspects. Information
in this chapter will help you examine the pros and cons of owning a home, based
on your personal desires, future plans, and general financial position.
Advantages and Disadvantages of Owning a Home
Before buying a landed property, it’s important to consider how such a
purchase will affect your finances and your lifestyle. It makes sense to review
all of the advantages of becoming a homeowner before making this big
What are the advantages?
* Greater privacy.
* Homes typically increase in value.
* Your costs are predictable and more stable than renting because
they’re ideally based on a fixed-rate mortgage.
* The interest and property tax portion of your mortgage payment is a
* There’s pride in homeownership, which also closely ties you to your
Real Estate; one of the best business'
For those who haven’t heard about it, real estate investment in Nigeria has taken a positive trend compared to other business investments in Nigeria.
No matter what, Real Estate Investment in Nigeria is the best business you should put into account. Nigeria has the best conducive environment for business and investment compare to other countries in West Africa and as the country grows, many people tend to leave rural life to urban life and for that reason, there is always a shortage of housing in every city and town in Nigeria.
There are many business opportunities in Nigeria but real estate investment out competes them all. On this article therefore, we bring you the advantages of investing in real estate in Nigeria compared to other businesses.
For example, if you buy stocks from a stockist, you may aim to get profits when that stock appreciates. You may also have the dividends announced by the company in mind. If you invest in bonds, the interest earnings from the bonds may be the aim with which you make the investment. But, in real estate investment your number keeps appreciating.
Every investor wants his cash back as quick as possible and for that matter, real estate investment in Nigeria gives the quickest money guarantee. After investing your money, the first income you may get from making an investment in a property is the rental income e.g. letting out to farming et al. In the case when the investor falls into luck talk about a good location, like city centers, near universities which can he rented by colleges as hostels. Here your rental income will be quite substantial and the profits will be quicker.
When you a realist that puts the future in perspective then start thinking of rental incomes month after month. If you go through the statistics, rental incomes have always been much greater than the dividend incomes you get by investing in stocks. Of course, in stocks, if you are extremely lucky, a sudden surge in the value of your stocks may get you good returns if you sell the stocks at the most opportune time.
If you are keen enough, you may have observed that the real estate investments in Nigeria appreciate to a reasonable extent over a period, in every 3 years, the rental dues doubles depending on the area in which your property is situated. If the property is situated in a developing area like Igbesa, Mowe, Ajah, Ibeju Lekki where many projects are coming up, the appreciation will be quite high.
You know property investment or real estate investment appreciates over and over again and as you keep paying off your mortgage amounts, the equity value of your real estate investment will be increasing. This can be utilized by taking a loan equivalent to the equity value of the property. Any financial institution or bank will be ready to extend loans to you.
For your information, if you blessed enough to get a property in a good locality like Badagry and Igbesa at a good price, may be less than market value, you can make good money out of it. There are some people who buy properties at lower prices and flip them within a short time between 1-2 years to make good profits. This business is highly lucrative but you need to tread with caution if you want to do it. You must choose the properties that are certain to appreciate and further, the properties must have a clear title. If you patiently search, you are sure to clinch such deals.
Culled from Nairaland - Endorsed by Megat and Partners Estate Limited
Why BUYING a Home is a "GOOD IDEA"
The Best Investment as a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region. Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.
But take a second look…
Presumably, if you bought a N200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of N40,000.
At an appreciation rate of 5% annually, a N200,000 home would increase in value N10,000 during the first year. That means you earned N10,000 with an investment of N40,000. Your annual "return on investment" would be a whopping twenty-five percent. Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.
Your rate of return when buying a home is higher than most any other investment you could make.
How to own a Property in Nigeria
WANT to own a property in Nigeria? Your dream may soon come true through a popular property acquisition agency.
Megat and Partners Estate Limited is dangling comprehensive real estate services at Nigerians to encourage them to own properties ease.
Megat and Partners services were geared towards obtaining the best value for the buyer while also saving him time.
We manage the acquisition process on our clients’ behalf providing them with the direction and assistance they require when buying, renting or investing anywhere in the country. Our typical clients are first time buyers; buy to–let landlords; developers; overseas/offshore buyers; clients looking to buy at the auction and ‘cash rich time poor’ investors like footballers and artists.
Our strong network and knowledge of the Nigeria property market has provided a platform for numerous offshore and high net worth clients to achieve the purchase of their dream homes. Our business is tailored to our clients’ need and guarantees success.
On financing, Megat and Partners Estate Limited regardless of the client’s financial circumstances, finding the most appropriate finance arrangement for clients’ property purchase is essential and can sometimes prove to be rather hectic .
Some our targeted services, include personalized property search, business purchase search, recommendations on areas to live based on lifestyle, property management, bill paying and maintenance.