In our previous article, we began a discussion on the question: Is it better to rent or buy a house? We explored the details of what a renting package entails, the pros, and the cons.
In this part, we will focus on the benefits of buying a property, the potential downsides, and key factors to consider before making such an important decision.
Renting vs Buying A Property: 6 Hidden Pros and Cons
The Pros of Buying A Property
What are the benefits of being a Landlord? and how does it impact your finances?
Stability
Renters occasionally face the uncertainty of eviction when the property owner decides not to rent anymore or sell the property. As a Landlord, there’s peace of mind knowing the property is yours. This stability allows you to set long-term goals without worrying about moving.
Potential for Growth
The value of your property could appreciate over time. Factors that increase a property’s value include location, economic growth, and future development plans for the area. Developed areas like Lekki, Ajah, and Ikeja have a high turnover. Buying a property can provide potential for financial growth.
The Cons of Buying A Property.
What are the harsh realities of buying a property? Here are a few:
Huge Upfront cost
Buying a property typically requires a large upfront payment, which is often higher than the total rent you would pay over time. However, this is still a costly investment in an asset. A way to offset this cost is by renting out part of the property. This can generate rental income and help cover part of your expenses.
5 Reasons You Should Consider Rent Financing
Less Flexibility
Buying a home can limit your flexibility, especially if you plan to move across states or countries. Most Landlords either sell their property or hire property managers to rent it out when they need to relocate. You can leverage the services of rent financing providers like we do to ensure rent is paid on time
Cost of Maintenance
As a Landlord, you are responsible for the upkeep and maintenance of the property. Repairs, upgrades, and unforeseen maintenance costs are all on your shoulders. These expenses can be financially burdensome, especially if they arise unexpectedly.
Factors to Consider.
At Ule Homes, making such a life-changing decision requires careful thought. Here are some key factors to consider:
Financial Capacity
Your financial situation is one of the first things to assess before deciding whether to rent or buy. If you have enough savings and credit, purchasing a property might be a viable option. However, if your finances are still developing, renting may be the more suitable choice to avoid financial strain.
How to Build Your Savings While Paying Rent
Lifestyle and Personal Goals
If you enjoy exploring new places and neighbourhoods, renting might be the better fit for you. Renting allows you to live in areas that may be too expensive to buy in. However, if you prefer staying in one place for several years, buying a home and securing a mortgage might be the right move.
Local Real Estate Market.
Housing prices are influenced by location. By considering the costs of renting to buying in your area, you can make an informed decision based on your financial capacity and market conditions.
To wrap up this discussion, deciding whether to buy or rent is a personal choice. It depends on your financial capacity, lifestyle, and long-term goals.
At Ule Homes, we specialize in assisting young professionals with rent financing loans, which help them manage high upfront rent costs. If you prefer to spread your rent payments over several months, we can help.
To learn more about the services we offer, visit our website at www.ulehomes.com. We’re here to guide you through the journey to financial stability. Simply fill out our KYC form here, and we’ll be in touch!
Have you heard about our special holiday offers?
Don’t miss out on exciting offers this season. Read Here|| Embracing The Holiday Spirit; Discounts And Giveaways from Ule Homes
From all of us at Ule Homes, we wish you a wonderful holiday season!
Omotayo Ajewole
Ule Homes.