Renting or Buying a House in Nigeria: An Overview

Based on the statistics carried out in 2022, Nigerians are more open to renting houses than buying one. The reason is that real estate is a very expensive industry. Not everyone has the financial capability to buy properties because they want to. You must plan well to achieve that. Some people are not able to afford the rent for some properties.

But, if you are still debating whether you should buy or rent a property, this article will give you an overview of both, to help you make your decision.

 Overview of Renting a House

Renting a house in Nigeria entails paying the landlord who is the owner of the house a certain amount of money. When the payment is made and the contract is signed, you are allowed to live in that house for a specified period. After the duration elapses, you can choose to renew your rent or not.

You pay a rent

When you rent a house, you must pay rent. Most individuals who have bought their houses agree that renting a house is seen as a waste of money. But, everyone needs a place to say. The good thing is that you know how much you should save in advance for your rent so that you will pay your landlord when it is time. When you are a tenant, you have possession of that house because it is yours. The downside of paying rent is that your landlord may decide to increase the rent, it is dependent on him.

Flexibility

A homeowner cannot just pack up and leave their house on a whim when they are tired of the house. They can only do that when they have other houses or they have made other plans like relocating or selling the house. But, a person who rents a house in Nigeria has the flexibility of packing and leaving the house when they want to. They can do so even when their rental contract is not up. So, if they are relocating or simply want a change of house they can easily get it done.

Additionally, the cost of maintaining the house is usually on the landlord and not the tenant. Since the landlord will want their house to be in the best condition so that they will always rent it out, they have the burden of maintaining the house.

An Overview of Buying a House

Buying a house means paying for the transfer of ownership and possession of a particular house. When you buy the house from the original owner, that means all rights in that house have been transferred to you and you can do what you like with it. Though it is usually costly to buy a house. So, what should you know about buying a house?

Peace of mind

Several homeowners will agree that one of the best benefits of buying a house is peace of mind. You do not have to worry about your landlord increasing the house rent. You do not also need to think about being evicted assuming you cannot pay your rent when it is due. The reason is that you have total ownership and possession of that house.

Landlords in Nigeria, increase rent. For example, you may rent a house at 450,000 naira a year, and the next year, the landlord increases it to 600,000 naira. But, when you buy your own house, you do not have to worry about such an increase happening, especially when you are not ready for it.

So, owning your own house makes you feel secure. You do not have to constantly fret over the possibility of eviction in case your landlord wants to sell their house or increase rent. The financial and emotional worry is no longer there when you buy your house. Though you have to worry about the cost of repairing and maintaining your house.

 It is a good investment

The value of properties increases over time. Though for houses, their location plays a vital role in the appreciation of the property. Instead of enriching your landlord by paying rent to him or her, you can spend that money on your house or other properties. The good thing about it is that when you are ready to sell the house months or years later, there is every possibility of making more money than you had spent in building or buying the property.

So, buying a property helps you have a sustainable financial future. You can save more since you do not have to constantly worry about paying rent. The disposable income you have will be useful in other areas of your life that need it. Also, you can decide to rent out the house you bought, or sell it which means you will not be losing out on your investment no matter what.

 You have control over the house

Tenants who want to make changes in the design or structure of the house they are renting must speak to the landlord. If the landlord is against the changes they want to make, the tenant cannot do so. The reason is that the house is not their property.

But, a person who buys a property has complete control over that house, they can alter and design the house anyhow they see fit. They do not have to worry about seeking permission before making the alterations they want. The changes they make to the house can help increase the property value of that house which makes it easier for them to make more profit in that house if they ever think of selling them later.

 Final thoughts

Renting and buying a house in Nigeria has so many benefits as well as disadvantages. But, the deciding factor in choosing either of them is the money or resources involved in it. If you have the money to buy a house, then it is a good investment plan for your future. But, if you only have money to rent a house, then do so.