Introduction:
Renting is basically a recurring payment made by a tenant to a landlord in exchange for the use of land, a building, an apartment, an office, or other property. On the other hand, buying means to obtain possession of or the right to something by paying or promising to pay an equivalent, usually in money.
Renting:
Renting allows you to move without penalty when your lease expires. However, if your landlord decides to sell the property or convert your apartment complex into condos, you may be forced to relocate quickly. Less dramatically, they could simply raise the rent to a level that you cannot afford. When you rent, you know exactly how much you’ll be spending on housing each month. You may pay nothing more than your mortgage and regular bills in a single month when you own your own home. Monthly home-related expenses, such as renter’s insurance, are more predictable and significantly less expensive. The most common misconception about renting is that you are “throwing away money” every month. That’s is not correct. It would be best if you had a place to live, which always costs money in some way. While it is true that monthly rent payments do not contribute to equity building, not all of the costs of homeownership do.
Advantages of renting in Lagos, Nigeria:
· Low housing cost
· Shorter-term commitments
· No/minimum maintenance cost
· Increased flexibility
· More opportunities
· Less paperwork
Low housing cost:
You don’t need to sum up a large amount of money to rent a house in Lagos, Nigeria. It is not that expensive to rent in Lagos city.
Shorter-term commitments:
You are not bound to live in one place, like in an owned house. You can leave a rental house whenever you feel like it! And change your area within Lagos as you please.
Minimum maintenance cost:
You don’t have to pay for that broken window or fused bulb in your rental house. The owner of that house is responsible for doing it. However, tenants may be required to pay the fee if the property is damaged or as specified in the tenancy agreement according to the law in Nigeria.
Less paperwork:
It is not necessary to run here and there for the paperwork; renting a house in Lagos is relatively easy in terms of paperwork. Of course, you’ll have to sign a tenancy agreement that protects both your rights as a tenant and the landlord’s rights, but aside from that, you won’t have to worry about any other paperwork or file any documents.
More opportunities:
You can leave the rental house when you feel like it; you can shift as per your requirements. As Lagos is the largest city in Nigeria, Renting a home here allows people who aren’t sure where they want to live or don’t have enough money to invest in a home to explore more options, and this city is full of new opportunities for you. Not to mention that tenants can easily accept job opportunities anywhere in Lagos city without having to worry about what will happen to their homes.
Increased flexibility:
Tenants have the option to pack their belongings and relocate to another house or apartment with just a few days’ notice. They don’t have to worry about finding someone to move in or renew the lease because that is the landlord’s responsibility.
Disadvantages of renting:
· No tax incentives
· No fixed housing costs
· No building of equity
Buying:
Intangible benefits of homeownership include a sense of stability, belonging to a community, and pride of ownership. However, it is not suitable for those who are restless or nomadic. Real estate was the first illiquid asset. If the housing market is down in Lagos, you might not be able to sell when you want. Even if it’s up, there are substantial transaction costs when selling. It is far more expensive to change your mind about where you want to live when you own. But owning a house in Lagos has its perks.
Advantages of House ownership in Lagos, Nigeria:
When deciding between buying and renting a home in Lagos, both have their own advantages, like:
· Stability and security
· There are no restrictions.
· Possibility of generating income Ownership
Let’s take a closer look at each of these advantages of homeownership.
Stability and security:
Owning a home or a flat in a big city such as Lagos provides financial stability and security. Nobody can compel you to leave our legally owned property, and you won’t have to worry about a sudden increase in your monthly rent. Even if you buy a house in monthly or quarterly installments, the monthly or quarterly payment remains fixed until the end.
Buying a house is an excellent idea if you are planning to start a family in Lagos and have enough savings. Even if you start with a smaller home, you can always flip it for a profit and move up a few years later. And in cities like Lagos, the benefits just keep increasing.
No restriction:
You have complete freedom as a homeowner to knock down walls to open up your living room and paint the walls to your liking without having to answer to anyone. To suit your personal style and needs, you can update fixtures, change the décor, fix up the garden, and even do significant remodeling work.
And buying a house in Lagos gives you a better sense of freedom due to its entrepreneurial environment. So, When you buy a property in Lagos or anywhere, you gain complete creative control over it, allowing you to change and modify it as you see fit. However, before making any significant changes to the layout, make sure you are aware of the laws of the housing society in which you live.
Opportunities to generate income:
Owning a home in Big cities such as Lagos also provides you with an excellent opportunity to generate income by renting it out. If you have vacant space, you can simply rent it out to make some extra money while still owning it.
Disadvantages of Buying:
· Significant funds are required.
· Value deterioration
· The additional expense of maintenance and repairs
· Less Adaptability
Significant funds:
Purchasing a home necessitates a significant investment. Even if you plan to pay in installments or take out a mortgage, you must put down at least 20% of the total cost as a down payment.
Value deterioration:
Houses and buildings lose value over time due to outdated construction methods, outdated design, and general wear and tear. It means that before you can sell the house for a profit, you must first invest money and time in upgrading it.
But in cities like Lagos, where the population keeps increasing, and people constantly are willing to move there, your house price won’t decrease. In fact, it will go up exponentially.
Less Adaptability:
Purchasing a house or property in Lagos restricts your ability to move around and explore job opportunities in other cities of Nigeria. While a tenant can leave their home after serving a notice on their landlord, a homeowner must go through a lengthy process to sell their home.
But when it comes to buying property in Lagos, this isn’t an issue. Because you’ll have everything you need within your reach, and Lagos is full of opportunities and is developing rapidly. So, adaptability is easier in Lagos.
Conclusion
Needless to say, there are advantages and disadvantages to both renting and owning a home in Lagos. While your financial situation is essential in determining the best option for you, it is not always about money. It would be best to consider your personal goals when deciding whether to rent or buy a home in Lagos to see what is best for you in the long run.
