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Is It Financially Wise To Have Your Own Home? - Properties (2) - Nairaland

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Re: Is It Financially Wise To Have Your Own Home? by MMM2(m): 2:29pm On Jun 16, 2011
maybe
Re: Is It Financially Wise To Have Your Own Home? by eewule(m): 2:48pm On Jun 16, 2011
FOR THOSE WHO THINK OWNING A HOUSE ISNT THE BEST THING THAT CAN HAPPEN TO ANY ADULT. THE DAY YOU LOOSE A JOB AND CANT AFFORD TO KEEP UP WITH YOUR RENT, YOU WILL DISCOVER ON YOUR OWN THE ANSWER TO THE QUESTION ASKED HERE.
Re: Is It Financially Wise To Have Your Own Home? by ronkebp(f): 2:59pm On Jun 16, 2011
Yes now, na who dey ask dis question? of course having your own home saves a lot of money, moreover it is an asset, you can always decide to sell it later on to move into a bigger place, the bottom line, you will always have money in the bank.
Re: Is It Financially Wise To Have Your Own Home? by skyangel(f): 3:19pm On Jun 16, 2011
the answer is YES
Re: Is It Financially Wise To Have Your Own Home? by ektbear: 3:33pm On Jun 16, 2011
Funny, article in Slate came out recently arguing in favor of renting over home ownership:

http://www.slate.com/id/2295851/

In the past I had the idea that owning a home is always better.
Re: Is It Financially Wise To Have Your Own Home? by Reflector: 4:16pm On Jun 16, 2011
ekt_bear:

Funny, article in Slate came out recently arguing in favor of renting over home ownership:

http://www.slate.com/id/2295851/

In the past I had the idea that owning a home is always better.

Thanks for that article it actually supports some of the points I have been raising here.

Mind you I currently live in my own home which I built some years ago. if given the opportunity again I would still build my own home, my reason for building was not to save on rent as the money I spent on building it would have paid my rent for 100years. I don't also see it as a financial investment as I don't intend to take a loan on it or sell it and yes it cost me money to maintain and run it (I just repainted the entire place). For me it is a necessary liability I am very comfortable with.
Re: Is It Financially Wise To Have Your Own Home? by dayokanu(m): 4:34pm On Jun 16, 2011
Yes it is
Re: Is It Financially Wise To Have Your Own Home? by richlawyer: 4:43pm On Jun 16, 2011
As a Lawyer that is also into Property Business, I know that I am suppose to be encouraging everybody to build his or her own home, but reality and experience has has made me to understand to a lot of us do not know when it is the right time to build, or start a building project. see examples (1). A retiree / pensioner who just collects is pension say N5m, and gets pushed by the wife to start a building project when in actual fact he or she ought to have used this money to start a good Biz, a small scale production line, trading, or something viable.  If such a person buys land out of this money, settles omo-onile, and starts to build, he will soon realise that before he roof the house the entire money he has is gone. because he cannot say that the entire money will go into the project as other expenses will get paid from this money so this explains why you see several abandoned building projects and a lot too being advertised for sale as uncompleted housing projects.
Or on the other hand the couple finish building the house and move in with tenant(s) and you will soon see the couple seating outside every morning when every body else is going out in the morning and they will be increasing rent for tenants every month and ask for 3 - 5 years rent from would be tenants. SOLUTION. if this entire money was first used in setting up a good Biz, come every harvesting time the couple would have been harvesting MONEY, PROFITS, and would be able to set up another shop or Biz, and get to a stage that they can comfortably start and build to finish stage their home and just like every body still have their various offices and business to go to every day. Barr. Omowa Adeyinka
Re: Is It Financially Wise To Have Your Own Home? by kcoolk4: 5:02pm On Jun 16, 2011
Reflector:

I agree with you folks that we all need to own a home in order to secure a roof over our heads and provide security if we fall on hard times and cash is no longer rolling in. for instance when you retire your persion may drop to less than half of what you used to earn and you may find it difficult to continue paying rent.

Nevertheless owning a home and thinking it is saving you money is a false belief. Yes it has potential to make you some good money if you sell and can find a buyer but then how many people sell their homes? Remember the stock market boom when lots of people were paper rich but never cashed their money same thing happens when you look at your home as an asset but never sell or use it as collateral for a loan.
REflector,

I can't agree with you more. So many rich real estate authors have made the same point as you. I am sure you have read some of those books about your personal house not being an asset as we tend to erroneously believe. An asset is something that generate money for you. Personal house is not an asset because when you sell it you still have to buy another house to live in. I only see capital gain when you make profit on the house you sell.
I think the same way you do and it doesn't mean I don't have a house. I do. And I have for rent too. But the one I live in BY MY OWN DEFINITION is not an asset.


Re: Is It Financially Wise To Have Your Own Home? by maclatunji: 5:13pm On Jun 16, 2011
I think there should be no argument here about building your own house being better than renting. The challenge comes when you build the wrong type of house for you and your family. I am yet to meet someone who owns a block of flats that regrets that decision, while there are tonnes of people with duplexes who are virtually crying everyday. Build the right property now, and you are good for life. You had better believe it!

P.S: This submission is for Nigeria only and for Lagos in particular.

Even the OP lives in HIS OWN house, that should give even a dummy a hint.
Re: Is It Financially Wise To Have Your Own Home? by madoba: 5:21pm On Jun 16, 2011
Learning quite a lot from this thread. Just want to know what would be a better option here in Lagos if you've got the money, is it

a. buying a house to probably refurbish it or
b. building one from scratch.

Option A, appeals to me because all the hassle of dealing with dishonest rogues in option B can be done away with but would like to hear from guys.
Re: Is It Financially Wise To Have Your Own Home? by lionness(f): 5:47pm On Jun 16, 2011
What a d0mb question. keeping getting harrased by lagos landlords and keep filling their accounts.
you mean those landlords collecting a half a million naira yearly rent from your 3 bedroom flats arent raking in financial benefits?
please use your head and not your fingers abeg.


PS: i have a 6 flat 2 story building in agric ikorodu on a 2 plots.
rent back then was low, now i collect 220 per flat x 5 = 1.1mil yearly.
and hold on, i have 6 shops outside. i use 2 and collect 100k yearly rent from the rest. everything equals 1.5mil yearly

mind you, i bought the land in 2005 for 900k and spent 20mil on the property. it was the best thing i ever did in my entire life.

1 Like

Re: Is It Financially Wise To Have Your Own Home? by bigdoo: 6:15pm On Jun 16, 2011
Cinzo, you sound as if relocating to ones village is really a bad thing.  Sometimes it has turned out to be the best thing that ever happenned to some people.  I have a cousin who lived almost all his life in the north.  He inherited a house from his late father and lived most of his life in the north after his primary and secondary education.  He made very little or no impact at home, ie his village and nobody even knew him or his children.  But he returned to his village in the east after one of the riots in the north.  He sold the house he inherited from his father in the north and I can tell you that he and his family are doing quite better at home, right in the village than they ever did when they were in the north.

I have been to many cities in Nigeria and seen the type of environment most people from other states who migrated to the so-called cities live in and some of them are very deplorable.  On the other hand, many people are doing very well in the villages and enjoying better life and eating the best(organic) food.  I do live in a western world right now but have no intention of returning back to Nigeria to live in a city so to say.  I am very comfortable living in my village and any nearby city or cities close to my town/village provided that I have all that it takes to make life worth living in those places.  However having my own buildings in those areas where I choose to live in is a pre-requisite.
Re: Is It Financially Wise To Have Your Own Home? by Reflector: 7:04pm On Jun 16, 2011
madoba:

Learning quite a lot from this thread. Just want to know what would be a better option here in Lagos if you've got the money, is it

a. buying a house to probably refurbish it or
b. building one from scratch.

Option A, appeals to me because all the hassle of dealing with dishonest rogues in option B can be done away with but would like to hear from guys.

Personally I feel most of the houses offered for sale are over priced. For instance I was recently offered a 2 bedroom bungalow on 1 plot of land for 27million. I know the land cannot be worth more than 6million which implies the house is being valued at 21million. If I buy it I would probably have to knock it down, being a bungalow it doesn't have any pillars to support a duplex, I would need to crack the foundation to install the pillars, renovating it would involve changing windows de-roofing and putting new roof etc, at the end of the day I would probably spend about 15m on it. Total spend would be around 42 million

Is it worth it nope. On the other hand if I buy a virgin land elsewhere in an upcoming area I would probably get it for 3 million and then spend 20million building what I want from the scratch, at the end of the day total spend would be 23 million or there about, much less than what was spent buying the other property in the first case.

Most often people who buy houses and later renovate, buy because of the location. For a company that needs to establish its presence in a commercially viable and visible location it makes perfect business sense, but for individuals unless you have plenty money it is often more expensive to go that route.
Re: Is It Financially Wise To Have Your Own Home? by femmy2010(m): 7:51pm On Jun 16, 2011
It is the best.
No more 2 years rent payment in advance.
Re: Is It Financially Wise To Have Your Own Home? by koolguy88(m): 7:58pm On Jun 16, 2011
yeah, it's better than renting/paying rent
Re: Is It Financially Wise To Have Your Own Home? by Olaisrich(m): 11:30pm On Jun 16, 2011
'if you have enough cash that can finance your building project go ahead an do,but if not pls take heed to Lawyer's advice, it's the best!
Re: Is It Financially Wise To Have Your Own Home? by Vindy: 11:36pm On Jun 16, 2011
My duplex in port harcourt is 85% complete, since i live and work here i think its the best thing i have ever done though i have a students hostel in Uniport living in a rented flat can be degrading, like the insults from your landlord the constant increase in rent etc, i cant stand it, the rest of mind that goes with having your own house can only be imagine. Some of us here knows how wicked some landlord can be, some are envious of the fact that your power genetor is always on and thiers is not, some will tell you when you must come back at night or they will lock you outside the gate. The rest of mind alone that goes with having your own house here in Naija, na God
Re: Is It Financially Wise To Have Your Own Home? by AmeLonRo(m): 1:36am On Jun 17, 2011
Having a house of your own is security. For yourself and family. You will have something to pass on to the next generation (your posterity).
Re: Is It Financially Wise To Have Your Own Home? by Sagewood: 5:53am On Jun 17, 2011
richlawyer:

As a Lawyer that is also into Property Business, I know that I am suppose to be encouraging everybody to build his or her own home, but reality and experience has has made me to understand to a lot of us do not know when it is the right time to build, or start a building project. see examples (1). A retiree / pensioner who just collects is pension say N5m, and gets pushed by the wife to start a building project when in actual fact he or she ought to have used this money to start a good Biz, a small scale production line, trading, or something viable. If such a person buys land out of this money, settles omo-onile, and starts to build, he will soon realise that before he roof the house the entire money he has is gone. because he cannot say that the entire money will go into the project as other expenses will get paid from this money so this explains why you see several abandoned building projects and a lot too being advertised for sale as uncompleted housing projects.
Or on the other hand the couple finish building the house and move in with tenant(s) and you will soon see the couple seating outside every morning when every body else is going out in the morning and they will be increasing rent for tenants every month and ask for 3 - 5 years rent from would be tenants. SOLUTION. if this entire money was first used in setting up a good Biz, come every harvesting time the couple would have been harvesting MONEY, PROFITS, and would be able to set up another shop or Biz, and get to a stage that they can comfortably start and build to finish stage their home and just like every body still have their various offices and business to go to every day. Barr. Omowa Adeyinka

Richlawyer (Barr Omowa Adeyinka),
I just wanted to confim that you are the same person I think I know @ Ikeja, years back. Send email to sagewood@yahoo.com
We might do some property business in Naija.
Re: Is It Financially Wise To Have Your Own Home? by ceeplus(m): 6:46am On Jun 17, 2011
Surely,it is a wonderful idea.it is the dream of every nigerian man,to hv his own house.even nature approves such.
Re: Is It Financially Wise To Have Your Own Home? by Acidosis(m): 9:55am On Jun 17, 2011
building a house for yourself and family is a big liability not an access. there is no point building with the money you have when you can actually invest that money in a real estate business.
note this: anything that takes money from your pocket is a liability while assets refers to things that brings money into your pocket (many educationists and economists wont agree with this principle that is the reason why they keep running the rat race). Again, building is not an asset! cos you'll keep on paying bills even after about 20 years of living there.
Re: Is It Financially Wise To Have Your Own Home? by Reflector: 10:37am On Jun 17, 2011
Thanks for all your contributions please keep them coming so others can learn from your views and experience but do remember to respect each others views (No insults please).

I have also started another topic on something I am seriously thinking about and need your views on. click the link below to make your contributions there as well. Thanks

Building A Student Hostel : Profitability And Challenges https://www.nairaland.com/nigeria/topic-692451.0.html
Re: Is It Financially Wise To Have Your Own Home? by Nobody: 3:30pm On Jun 17, 2011
I disagree with your definition, an asset is something capable of bringing money into your pocket and a house is an asset because you can either sell it or rent it out, so it is an asset. Almost all the time it is better to build a house except you had to borrow money (mortgage) and the interest you pay is higher than the value of your rent. Real Estate historically is a hedge against inflation and most times Real Estate value appreciatioin exceeds inflations.

If you dont invest in property what else are you going to invest it in? Stock Market? Naa, you cant go wrong with property in Nigeria!
Re: Is It Financially Wise To Have Your Own Home? by Fhemmmy: 3:32pm On Jun 17, 2011
^^^ Well said . . . . however, there is nothing wrong in other kinda investment too, but all depends on our tolerance
Re: Is It Financially Wise To Have Your Own Home? by jaybee3(m): 3:34pm On Jun 17, 2011
Yes if you have the money as it's always going to be a worthy asset
Not any more if you are going via the mortgage route as house price crashes provides one with the threat of having negative equity at the end of loan duration.
Re: Is It Financially Wise To Have Your Own Home? by Fhemmmy: 3:38pm On Jun 17, 2011
jay bee:

Yes if you have the money as it's always going to be a worthy asset
Not any more if you are going via the mortgage route as house price crashes provides one with the threat of having negative equity at the end of loan duration.

Even if you go for a mortgage . . . . such loan is what they called good loan.
However, if you misappropriate the mortgage, then, there is a problem.
A nice building in a nice area in Lagos or lemme say Nigeria and you get reliable tenants, no matter how you finance the building . . . . it is a good investment.
Re: Is It Financially Wise To Have Your Own Home? by jaybee3(m): 3:49pm On Jun 17, 2011
Fhemmmy:

Even if you go for a mortgage . . . . such loan is what they called good loan.
However, if you misappropriate the mortgage, then, there is a problem.
[b]A nice building in a nice area in Lagos or lemme say Nigeria and you get reliable tenants, no matter how you finance the building . . . . it is a good investment.[/b]
Are you sure about this Mr? What's the rationale for having 'em sky rocket house prices around lagos Island?
I hope you know property values crashes once people have increase ease of getting from A to B.
Demand is the only thing driving prices in lagos and once transportation problems eases then you will generally expect demand to subside and in turn a massive property crash
Thread carefully bro
Re: Is It Financially Wise To Have Your Own Home? by sley4life(m): 5:25pm On Jun 17, 2011
sure. its the best investment
Re: Is It Financially Wise To Have Your Own Home? by Reflector: 7:09pm On Jun 17, 2011
jay bee:

I hope you know property values crashes once people have increase ease of getting from A to B.
Demand is the only thing driving prices in lagos and once transportation problems eases ,


I think you just nailed it there. most people looking for houses and living in Lekki work in VI or Lagos Island. proximity and speed of getting to the office attracts them to that axis. with good and efficient transportation a lot would relocate to the mainland and pay a fraction of lekki's rent.
Re: Is It Financially Wise To Have Your Own Home? by fyncorp: 11:11am On Jun 18, 2011
Stabilize your income,upgrade your career before embarking on housing project.With good income you come build houses every year.
My advise goes to my fellow Ibo trader/businessmen whose priority is to build a mansion in the village without stable income/business.People will praise you but you will be the one that will cry in the long run.N10 million spent in building a house can give you N100 Million in two year or less,if you seek good business advise from professionals and successful businessmen.
Re: Is It Financially Wise To Have Your Own Home? by Saipro(m): 4:03pm On Jun 18, 2011
Since you MUST live in a house, why not as well own it? You don't - when it threatens to do you in! The hidden costs of building one's own house can be alarming. So much that building projects take up to twice or more the allotted period. If ever completed.

If you however can build one (or more, as my comments are directed towards people of honest AND moderate means), by all means do. The "goods" outweigh the "bads". But beware, it's destroyed many a family's fortune. And future.

My advise (from experience)? Careful planning. And na dis I go take end am - na God o!

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