Important things to consider before buying a house in Nigeria
10 Factors To Consider Before Buying A House In Nigeria
One of the greatest challenge for every youth, family in Lagos & Nigeria at large is owning a house of their own. The stress of having to move from one location to another and having to deal with the ever-increasing rent by Landlords can be daunting. Buying a house is a big decision and one of the biggest investments and purchases you will ever make. For this reason, it’s important that you think carefully about how to go about it. Deciding on the right property is essential. This may seem like an easy decision when you look online, but it’s more complicated than it seems. Many factors must be taken into account when looking for a home. These factors can vary based on the type of property you plan on buying and the location of that property, but there are many things that apply to all homeowners across the country. You’ve found a house you like, You’re ready to go out and make an offer before you make that purchase, Here are 10 important things you should consider before buying a house.
The purchase price
The first thing to consider when buying a house is the purchase price. This is not to be confused with the amount of money you pay for the house. There can be a wide variety in the price of a home, depending on a number of factors such as location, square footage, and many other factors. It can be helpful to have a rough idea of what you are willing to spend in purchasing a house and what the type of house you are looking to purchase cost in the market. This can be done by using a variety of internet calculators or consulting a real estate professional to determine the value of a home.. It is important to remember that home prices can go up or down, so it is important to do your research and be realistic about what you may be able to afford. The purchase price can be negotiated, and the seller may agree to lower this amount. However, it’s not uncommon for buyers to negotiate the price of a home. The purchase price is just one aspect of buying a house, be sure to consider all other costs associated with your potential new home. It’s important to understand what your monthly or subsequent payments plan will be after the initial deposit or down payment, and what other options are available for you. It’s pointless to buy a house if you can’t afford these payments because you’ll be wasting money on paying interest every month. Buying a house is a big commitment that should not be entered into lightly.
Your debt-income ratio
Debt-income ratio is a key indicator of your financial health. this is an indicator of your ability to afford your desired house. A high debt-income ratio typically indicates that you are spending more than you are making to maintain your current level of living, and may need to seek financial relief or bankruptcy protection. This can lead to a number of problems, including financial stress, increased debts, and a more challenging financial future. A low debt-income ratio is a sign that you are able to maintain your current level of living and would be able to pay the subsequent balance within the time frame as agreed by the realtor or seller after the down payment of the house has been paid.
This is usually the money you pay upfront for the purchase of the house. It is a form of commitment towards the purchase of the home. It normally ranges from 0 to 30% of the home’s total cost, although it might go higher based on the seller’s requirements..
Local market indicators
This is one major factor to consider when deciding to buy a house. The location you might be interested in may not have a home in your price range or facilities you need. It might be cheaper to own than rent and vice versa depending on the current state of the local market. It is important to acquire or own a home in the right market or area when considering future or long-term investment prospects.
Supply and demand
Due to the fast rate at which prices of land and houses appreciate especially in Lagos, the island to be precise. Many people find it difficult to purchase their desired home within their financial reach. A house one purchased for 45 million naira this year can be selling for 80 to 90 million naira the next year. Home owners are really cashing out, that why house flipping has become a lucrative business. The high increase of both rent and home prices mixed with stagnant wages for many, leads to the combination of high demand and low supply. This may be a challenge for first time home buyers, but serial home owners or real estate investors who own passive income properties would benefit from the market.
Location of the house
Home buyers choose to live in a location that is convenient to their favorite destinations, such as job, school, worship, shopping, friends and family, recreation, and so on. You should look for an area with easy access to major highways. Examine the flow of traffic as well. Doing all of these things before purchasing a home in Nigeria might help you avoid the headaches of getting out and about. Purchasing a home near your workplace or school will save you time and money on transportation. Many home buyers go about looking for a home or property to purchase without properly comprehending the worth or value that various location can bring to a property or home. Major areas of the Lagos Island for example are more expensive than parts of the Lagos Mainland in Lagos State. Real estate investors must understand how a neighborhood’s value can fluctuate or influence the pricing and value of a property.
The payment plan
In Nigeria, buying a house costs a lot of money. Only a few people can afford to make an outright purchase of a house. Check with your bank or lender to see if they have a solid repayment or mortgage plan in place for you. A trustworthy financial partner who will guide you through the procedure will be quite beneficial. When selecting a financial partner, examine aspects such as the affordability of their mortgages and loans, as well as the length of their loan payback duration.
The type of house & Size
Your needs and preferences will determine the sort of home you purchase. You can choose from a variety of options be it a bungalows, an apartments, mansions, condos, a terrace, a duplex or other types of housing. The type of lifestyle you desire to live will also influence your property selection. After you’ve decided on the type of home you want, the following step is to think about the design. Choose a house that is well-designed and appealing. Materials utilized, color, landscape, house size, and other aspects all play a role in the design of the house. the property’s size, structure, number of rooms, and appliances available must also be considered. One must also evaluate the variety of bedrooms available, are the all en-suite and whether or not the property may be remodeled or expanded.
Find a real estate agent
In Nigeria, real estate agents are always paid a percentage of the home’s sale price, which is why some homebuyers may be hesitant to use one. When you work with a realtor, you’ll be working with a professional who will not only find you a property you’ll love, but will also protect your interests. A knowledgeable broker working for you can defend your interests and guide you through the whole buying process, from price negotiations to home inspections. Finding a real estate agent can be tricky, but it’s important to find one who is experienced and knowledgeable about the area in which you are looking to live. There are a few things to keep in mind when choosing an agent:
-The agent’s experience and knowledge of the market.
-The agent’s price point.
-The agent’s quality of work
Condition of the house
When purchasing a home in Nigeria, you must ensure that it is in good condition. Purchasing an older home will need extensive improvements, which could be costly in the long run. This is something you should avoid. That is why, to avoid future stress, you should thoroughly evaluate a home before purchasing it. When you buy a new house, you will almost certainly have to perform some renovations. While aesthetic flaws can be fixed for a low cost (a coat of paint or some wallpaper), kitchen and bathroom renovations can be costly. That’s not to say you shouldn’t buy a house that needs little work, but you should consider the repair cost before deciding to go ahead with the purchase.
Whether you are a seasoned home buyer or a first time home buyer, when going house hunting, make sure to consider all these important factors and let it serve as a guide for you before making that important purchase of your dream home.