_Which-Is-Smarter-Renting-Or-Buying-A-House-In-Nigeria

Which Is Smarter Renting Or Buying A House In Nigeria?

There has always been an argument about either buying or renting a house and which one seems to be the smarter decision to make. Either way, buying or renting a house depends on the buyer or seller and of course, their personal needs. In this post, we will be discussing the advantages and bottlenecks of either buying or renting a house. 

Buying a House

Buying a house gives you the options of either buying an already-built furnished house, buying an almost completed house and finishing it up or buying an old house and renovating it. Not forgetting that this includes the land on which the house was built.

Let’s talk about the advantages of buying a house. 

 

1. Peace of Mind and Stability 

Knowing that you do not have to pay any landlord any amount of money for rent and having no fear of rent increment would provide enough peace of mind for someone who doesn’t like to pay for things too frequently. It can also create stability for someone looking to have his personal house or have enough space to house his family, assets and maybe, business. 

 

  2. Self Pride 

There is a sense of fulfilment that comes with owning something. Having a property in your name would definitely boost your confidence to the highest level and give you a sense of achievement. For someone whose goal is to be a landlord, owning a house would definitely be a dream come true and a lifetime achievement.

 

3. Long Term Investment 

Buying a house appreciates over time. If you ever get bored of a particular place or city and decide to move, there is a high probability that you would sell a particular house over the price you bought it at or it will be an annual source of income if you decide to put it up for lease. Either way, you won’t lose. Real estate investment especially in a developed country or state is a big source of passive income. For example, buying real estate in Lagos, Nigeria where the population and business rate are high would definitely be a good investment plan for someone who’s looking to make their way in the real estate business. 

 

4. Privacy 

Owning your own home gives you top privacy. You do not have the fear of a landlord or landlady barging into your house to talk about rent increment or to harass you. You also have the freedom of renovating your house anytime you can afford to. 

 

5. Flexibility

Building your own house gives you the leverage of building it to suit your own taste, style and lifestyle. You get to pick the design, the interiors, et cetera. 

 

Now, to the disadvantages. 

 

1. High-cost 

Buying a new house is expensive. You’ll have to pay for it either all at once or in instalments, which means you will be spending an extravagant amount of money. This could be a problem if you’re not yet financially stable.

 

2. Reduced Mobility 

Owning a home in a particular place can provide stability and comfort that make it difficult to relocate or take up a new job elsewhere. This is especially true since selling or renting a house is not an immediate process and can take some time. 

 

3. Maintenance is high cost

Owning a house means that you are in charge of maintaining the house and if you are not a ‘do it yourself’ kind of person, the cost of getting a professional to fix a home appliance, repaint the house, change a leaky pipe, etc might be high. And if perhaps the house is an old one, it might be requiring maintenance too frequently. 

 

4. Fall in Property Value 

There is no guarantee that a house will increase in value over time, and there are several reasons why this might be the case, such as migration, the risk of demolition, and poor maintenance. Selling the property at a lower price can be demoralising for the owner, as no one wants to operate a business that doesn’t generate a profit.

 

Now that we have seen the pros and cons of buying a house. Let us now discuss renting a house. 

 

Renting a house

Renting a house involves payment for the temporary use of a property (house) owned by another. This also boils down to the personal needs of the renter and we’ll be discussing some of the advantages and disadvantages. 

 

Advantages: 

1. Lower Payments and Flexibility

Renting a house provides the flexibility of paying a fixed amount of money at regular intervals, whether that’s monthly, quarterly, or yearly. This allows the renter to plan their finances and keep aside the exact amount required for rent. Renting also offers the advantage of lower upfront costs, which is especially beneficial for those who cannot afford to pay a large amount of money at once.

 

Renting is an ideal choice for those who enjoy travelling or need to relocate frequently due to work. It offers the freedom to move without the hassle of selling a property or worrying about its long-term value.

 

2. Limited Maintenance Responsibility 

Renting a house takes away the responsibility of the costs of maintenance as the landlord or landlady will be saddled with the responsibility of repairing and maintaining the house. 

 

Disadvantages: 

1. Difficulty in Property Changes 

Renting a house makes it hard to make certain changes in your apartment. Say, you don’t like your tile colour/type or interiors, you would have to get permission from your landlord or landlady before changing it to your preferred choice. Some house owners require you to ask for permission for something even as basic as using a certain paint colour to repaint your house. 

 

2. Rent Increment 

There can be an increment in rent at any time as most house owners move with the flow of the real estate business. Some can even go as far as increasing the rent without making any real renovations to the property in question. 

 

3. No Added Value 

As a tenant, you do not have the right to sell or put a house up for lease. This means that when you are leaving a certain house, you do not leave with anything besides yourself and a few properties that belong to you. The added value of the property belongs to the owner of the property. 

 

Now that we have seen the pros and cons of either buying or renting a house, it is important to put into consideration your personal needs and goals as a buyer or seller before choosing which to go with. If you’re already in a developed part of the country like Lagos and you would like to own your own house, owning a house in Lekki would very much be a good investment and we at Jimic Royal Homes will be very glad to hold your hands through it all.

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