Well no matter the decision you need to make you'll definitely have to consider the cost of housing and property like in places like the United States I thinking renting will be more convinent because it's mostly a developed country and buying of landed property may be very expensive, and may also be very impossible if the country is practising a communist or socialist system of government.
However in a capitalist democratic country such as Nigeria which happens to be a developing country it'll be more advisable to buy a landed property and build your own home.
For example the cost of renting in 5 years in an urban area in Nigeria Is around 800,000 Naira (Nigerian currency) for a year, and if you multiply that by five years, that will be 4, 000,000 (4 million naira Nigerian currency) which will be enough to buy like 10 acres of a landed property in an Urban area or let's say A dream duplex with nice garden, space and parking lot in a semi rural area in Nigeria with constant electricity as well.
Like I said it depends on the country you are, check the system of government your country is practising, check the Cost of landed property and compare it to renting in the long term then you will know which is definitely the best decision. In some countries renting is better and affordable, in some buying will be better in the long run and save money. Make your research and make your choice.
Buying a home is one of the dreams that the community wants to realize. Home ownership is considered as one of the best investments and an important milestone towards a better life. Which is more appropriate for us, is it owning a house or is it better to rent / contract first?
Buying a house is often done by many people with two methods, namely in direct cash or through installments. If you have enough capital, then many people suggest to buy directly in cash. What if our capital is mediocre? Some recommend buying credit / installments instead of rent / contract.
Buying a home is still an important financial goal, and this can be a great way to build wealth over time. But this does not mean that it is always the best investment choice. You need to consider the goals for your long-term and current financial situation.
Taking into account the following things will help you decide whether this is the right time to buy a house or better to rent / contract it first.
Are You Ready to Settle?
Many people decide to buy a house because they are tired of "throwing money" just to pay rent. However, when viewed from another perspective, renting / contracting provides flexibility and freedom compared to you must be 'imprisoned' if you buy a house in installments for a period of 10-15 years.
On the one hand, the rental price / contract costs may increase, but on the other hand for those who choose to own a house, there is a possibility of a property tax increase and home maintenance costs.
Then, what is the best decision? It depends on you. If you don't plan to stay in the same home and neighborhood / area for at least three years or more, it is usually more reasonable to rent.
It takes a long time for the value of a home property to be able to cover transaction costs associated with buying and selling home property.
Are You Skilled in Caring for Home?
If you have a home, you have the freedom to conceptualize it yourself. You can install hardwood floors and build a deck in the backyard. It is true, we can hire someone to do many things to remodel your home, but that requires quite a lot of money.
Depending on the age and condition of your home, handling care and repairs can be time consuming, stressful and expensive.
Meanwhile, if we rent a house, it can be handled by the homeowner.
Consider Property Taxes and Other Fees
It is true that owning a house can give you additional tax deductions that are not available to tenants, but not always.
You usually have the option to reduce mortgage interest along with property taxes that must be paid, but you must specify this deduction to get the tax benefits.
Also, keep in mind that certain costs associated with home ownership cannot be deducted such as repair costs, homeowner insurance and homeowner association fees.
I think if you have a corpus collected than it is always good to buy your first home. Buying your first home is like everyone's dream. People, tend to dream about their home and have a lot of things to do and flaunt about when they buy their first home. Believe me its kinda different feeling when you have your own home may it be big or small but at the end of the day its your own home and you can do whatever you want with it. Like you can decorate it or have interiors as per your choice but whereas in a rented home or an apartment you will not want to shed out those extra dollars or money in renovating the house as per your taste. Also, having your own first home is like a big achievement in life at-least it was for me. I, was very happy to buy my first home and it felt like a great achievement. Here, I would also like to list down some quick benefits of buying you first home.
Benefits of buying your first Home:-
1. Take advantage of the tax rebate given by income tax department of the country
2. Home loans at subsidized interest rates, so you do not feel the pinch while paying your EMIs
3. You have something to flaunt about and a very good feeling that you are the owner of a property
4. Land is limited so there are chances you could make good amount of money from your home if the prices in future shoots up.
5. I, could just go on and on but so as to conclude Your First Home attaches a lot of memories to it that you will cherish all your life. So, in-order to gain all the advantages listed above and have the memorable feeling, I would recommend for buying your First Home wrt. to renting out again and again. Go for it and buy your first Home.
Well no matter the decision you need to make you'll definitely have to consider the cost of housing and property like in places like the United States I thinking renting will be more convinent because it's mostly a developed country and buying of landed property may be very expensive, and may also be very impossible if the country is practising a communist or socialist system of government.
However in a capitalist democratic country such as Nigeria which happens to be a developing country it'll be more advisable to buy a landed property and build your own home.
For example the cost of renting in 5 years in an urban area in Nigeria Is around 800,000 Naira (Nigerian currency) for a year, and if you multiply that by five years, that will be 4, 000,000 (4 million naira Nigerian currency) which will be enough to buy like 10 acres of a landed property in an Urban area or let's say A dream duplex with nice garden, space and parking lot in a semi rural area in Nigeria with constant electricity as well.
Like I said it depends on the country you are, check the system of government your country is practising, check the Cost of landed property and compare it to renting in the long term then you will know which is definitely the best decision. In some countries renting is better and affordable, in some buying will be better in the long run and save money. Make your research and make your choice.
Buying a home is one of the dreams that the community wants to realize. Home ownership is considered as one of the best investments and an important milestone towards a better life. Which is more appropriate for us, is it owning a house or is it better to rent / contract first?
Buying a house is often done by many people with two methods, namely in direct cash or through installments. If you have enough capital, then many people suggest to buy directly in cash. What if our capital is mediocre? Some recommend buying credit / installments instead of rent / contract.
Buying a home is still an important financial goal, and this can be a great way to build wealth over time. But this does not mean that it is always the best investment choice. You need to consider the goals for your long-term and current financial situation.
Taking into account the following things will help you decide whether this is the right time to buy a house or better to rent / contract it first.
Are You Ready to Settle?
Many people decide to buy a house because they are tired of "throwing money" just to pay rent. However, when viewed from another perspective, renting / contracting provides flexibility and freedom compared to you must be 'imprisoned' if you buy a house in installments for a period of 10-15 years.
On the one hand, the rental price / contract costs may increase, but on the other hand for those who choose to own a house, there is a possibility of a property tax increase and home maintenance costs.
Then, what is the best decision? It depends on you. If you don't plan to stay in the same home and neighborhood / area for at least three years or more, it is usually more reasonable to rent.
It takes a long time for the value of a home property to be able to cover transaction costs associated with buying and selling home property.
Are You Skilled in Caring for Home?
If you have a home, you have the freedom to conceptualize it yourself. You can install hardwood floors and build a deck in the backyard. It is true, we can hire someone to do many things to remodel your home, but that requires quite a lot of money.
Depending on the age and condition of your home, handling care and repairs can be time consuming, stressful and expensive.
Meanwhile, if we rent a house, it can be handled by the homeowner.
Consider Property Taxes and Other Fees
It is true that owning a house can give you additional tax deductions that are not available to tenants, but not always.
You usually have the option to reduce mortgage interest along with property taxes that must be paid, but you must specify this deduction to get the tax benefits.
Also, keep in mind that certain costs associated with home ownership cannot be deducted such as repair costs, homeowner insurance and homeowner association fees.
I think if you have a corpus collected than it is always good to buy your first home. Buying your first home is like everyone's dream. People, tend to dream about their home and have a lot of things to do and flaunt about when they buy their first home. Believe me its kinda different feeling when you have your own home may it be big or small but at the end of the day its your own home and you can do whatever you want with it. Like you can decorate it or have interiors as per your choice but whereas in a rented home or an apartment you will not want to shed out those extra dollars or money in renovating the house as per your taste. Also, having your own first home is like a big achievement in life at-least it was for me. I, was very happy to buy my first home and it felt like a great achievement. Here, I would also like to list down some quick benefits of buying you first home.
Benefits of buying your first Home:-
1. Take advantage of the tax rebate given by income tax department of the country
2. Home loans at subsidized interest rates, so you do not feel the pinch while paying your EMIs
3. You have something to flaunt about and a very good feeling that you are the owner of a property
4. Land is limited so there are chances you could make good amount of money from your home if the prices in future shoots up.
5. I, could just go on and on but so as to conclude Your First Home attaches a lot of memories to it that you will cherish all your life. So, in-order to gain all the advantages listed above and have the memorable feeling, I would recommend for buying your First Home wrt. to renting out again and again. Go for it and buy your first Home.