With growing concern over high cost of properties in Lagos state, would be first time home buyers are faced with the issue of which is better: to buy or to rent? and This has caused several debates both on and of social media.
One occurred recently on twitter when an apartment in the popular Eko atlantic city was listed on sale for $2.4 million.
While some agreed that the apartment is worth that amount of money, Some argued that the apartment is too basic for that amount of money and that with such amount, they can buy a house in Texas. Some said instead of spending that much money to buy a basic apartment, they rather rent an apartment in that same environment at a cheaper price and still mingle with the elites. So this brings us to the topic of today, “is it better to buy or rent in Lagos in 2020?” .
Well if you really think about it renting and apartment seem more logical in the sense that you spend less to Live and roll with the big boys.
Well, both buying and renting have advantages and disadvantages. It’s up to you to work out whether renting or buying a home suits your personal and financial situation best.
Advantages of renting a house
One of the advantages of renting is flexibility; as a tenant you can freely relocate from home to home and area to area once your rent/lease expires. Another advantage of renting is…
Renting can often be cheaper
Another advantage of renting is that you get to live in and expensive environment at a cheaper price. For instance that apartment that was listed on sale in Eko atlantic for $2.4 million, can be rented at a lesser at a lesser price and you still get enjoy the benefits that comes with living in that environment.
For this reason, most people who want to live among the elites but can’t afford to buy an apartment in that location, opt for renting. This a common practice in Lagos state.
So you see renting is not all that bad, but as the saying goes, “whatever has advantage, also has disadvantages”. Same applies to renting.
Disadvantages of renting
When renting a house, no matter the cost of renting that property, one thing is certain – the property is not yours and you do not have total control over the property and the money you spend paying for rent is gone for life.
You are a tenant
Another disadvantage of renting is that when you rent a house, you become a tenant and as a tenant, you are a bound to obey the rules and regulations of the landlord. You can do as you wish because if you violate any of the rules, you will pay the penalty which could possibly result to evacuation from the property.
And also your stay on the property is not guaranteed because your fate on the property is in the hands of your landlord and he can do as he please with his property. He can ask you to move once your lease expires and can also terminate your lease early for a number of reasons because Essentially the property is never really yours if you don’t buy.
No Privacy From Property manager/landlord
Another problem with renting is lack of privacy from landlord/property manager. For instance when you rent, your property manager and landlord can come into your property at any time, as long as they provide sufficient notice and have good reason, such as regular inspections which can happen as frequently as every two or three months.
You also cannot make any changes to the property to improve your living space or even put pictures up on the wall without the landlord’s permission. In other words you have to play by their rules else you face the penalty for defaulting.
Haven seen the disadvantages of renting, let’s take a look at advantages of buying to see why buying is a better option if you have the capital.
Advantages of buying…
Unlike renting where you never stop paying for rent, as a home owner, you never pay rent to no one because you are your own boss. You live by your own rules, do whatever you want with the property because guess what? It’s yours and no one will question you.
You do not have to worry about your privacy and you can make and adjustment to you building as you please and even decorate it to your own taste. As good as buying is, it also has its own disadvantages as well.
Disadvantages of buying
The disadvantage of buying is that buying is not as flexible as renting because it is your home and if you want to sell it and move to another location, it will cost about 4% of the sale price of your home to sell (agents fees, advertising, etc) and about 6% of the purchase cost to buy (stamp duty, government fees, loan establishment fees, etc). And all these cost money and takes time.
So as a landlord, before relocating, you have to put in a lot of thought and considerations unlike renting where you can change location as you please without spending much.
As you can see, both renting and buying have their benefits but the benefits of buying totally outweigh that of renting and I will always advice that if you have the required capital to buy a property in Lagos state, do not hesitate to buy because buying has always been the best option and will always be.
But when you are buying, it is important you buy genuine problem free property because that is when you can fully enjoy the benefits of buying and you can do this with peace of mind by contacting us @Bethel realtors and management on phone 0902 455 4979, 08034503952 or visit our office at suite 201 & 202 Akord shopping mall bogije, Ibeju Lekki LGA, Lagos state.