The problem is that the agreement is written for a 30 years duration which makes it a bad investment.

genq:



Mortgage and finance isn't a thing to shame or downplay like its nothing. My understanding is that one needs to have good credit and stable income to get it - and that's quite a big deal.

A mortgage is always an investment whatever way you look at it. You don't have to wait x amount of years to pay it off, you can simply sell the house anytime you wish and collect the equity you've built up on it, plus any additional profit the house has made if the value goes up. It's actually a quick way to accumulate a lump sum of money to invest into something else.

I prefer the western system of financing rather than what we have here where you will spend your whole life trying to complete a building project in a village because building in Lagos is almost impossible for the average middle class. Most people will never own a home in this Lagos or better still Abuja- last last na land!

useni1:
The problem is that the agreement is written for a 30 years duration which makes it a bad investment.

It makes it even good investment because the house price is likely to go up.

useni1:
Mortgaged house. Why do people abroad like excluding the mortgage part in owning a home abroad?

Even people with the whole money don't pay outright for a house, they invest the money in something else and do mortgage.

useni1:
The problem is that the agreement is written for a 30 years duration which makes it a bad investment.

The amortization doesn't make it a bad investment. Although 30 years amortization is an overkill. I consider 20 years very okay for a mortgage. 25 years is fair. Any amortization above that is kind of indicative whether the person is not stretching it just to afford the mortgage payment. i.e biting more than he can chew.

Also, whether a house is a bad investment depends on many some factors. House price can and will most likely fall, if it was bought in an inflated market or economy. This is assuming that the house structure itself is good. I have seen people buy houses and further sink money into it, just to repair shady work.

However, If the value of the house actually increased, it has to increase high enough for the owner to profit on it, so as to cover banks interest, realtor fees, closing cost, lawyer fees, insurances, applicable taxes etc (when buying and selling). House sold within 5 to 7 years of ownership will likely be a loss for the owner.

If you can keep the house for longer, then there is a good chance for profit depending on rate of inflation.

davide470:
The difference in the year would be financing of the Benz, i think.. But the Council Tax, Service fee, TV License, Electricity and Gas bill on this 4 bedroom though!

All in all, i believe he has a long term vision and it is a good one for him!

Or just maybe he saved an higher down payment which is a very good idea. That one year of extra savings could be the difference between a 5% or 20% DP.

justwise:


It makes it even good investment because the house price is likely to go up... or down

getting the wrong neighbors (or the wrong business) or just moving in the wrong neighborhood, can have your property price depreciate in just a few years

timesupreloaded:


"A house can be a great investment—for real estate brokers, the government, insurance companies, and banks. Basically, for everyone except the owner. For the owner, a house is a terrible investment"

https://www.businessinsider.com/buying-a-house-is-a-bad-investment-opinion-2019-9?IR=T

Not in all cases else nobody will even see one to rent from private landlords

MrBrownJay1:


getting the wrong neighbors (or the wrong business) or just moving in the wrong neighborhood, can have your property price depreciate in just a few years

True and the opposite can be the case as well.

justwise:
True and the opposite can be the case as well.

yes thats why i say it could be a good and bad investment.

justwise:
Even people with the whole money don't pay outright for a house, they invest the money in something else and do mortgage.

if you have the money i would suggest you buy the house outright rather than taking a mortgage...

Akiliogidi:
Good for him...
But then, stop this unnecessary comparison, like Drs in Nigeria don't make money??

Modified:

If you had said 3 yrs, that's quite understandable but 15 yrs?? no na..
I can list countless Drs that are making money, some have even resigned from the govt owned hospitals to concentrate on their clinic. What about the one in my street, married to a barrister, have 4boys all below 17yrs, have 2 SUV, 2 saloon cars & he is into real estate & he his presently building a duplex after destroying his bungalow.

Bottom line be say, Drs do make money in Nigeria too
.
.
.
I am not in the medical field o & even if I am there, I will still travel & I must travel, make man still dey find money, I go come tell my story

Bros that's doctor general. OP is talking about a "doctor"

salford1:

Or just maybe he saved an higher down payment which is a very good idea. That one year of extra savings could be the difference between a 5% or 20% DP.

He did mention saving £1000 per month for 3 years. That totals £36000 - this is quite a good chunk of cash to put down for a house - meaning the repayment balance might not be much

Akiliogidi:
Good for him...
But then, stop this unnecessary comparison, like Drs in Nigeria don't make money??

Modified:

If you had said 3 yrs, that's quite understandable but 15 yrs?? no na..
I can list countless Drs that are making money, some have even resigned from the govt owned hospitals to concentrate on their clinic. What about the one in my street, married to a barrister, have 4boys all below 17yrs, have 2 SUV, 2 saloon cars & he is into real estate & he his presently building a duplex after destroying his bungalow.

Bottom line be say, Drs do make money in Nigeria too
.
.
.
I am not in the medical field o & even if I am there, I will still travel & I must travel, make man still dey find money, I go come tell my story

Seems like I know these couple. Do you stay in Ifako Ijaiye LG of Lagos State?

MrBrownJay1:

if you have the money i would suggest you buy the house outright rather than taking a mortgage...

Na waoh. You don't want Bank to chop

salford1:
Na waoh. You don't want Bank to chop

na simple money mathematics.....
if a bank could give you a mortgage then they can certainly give you a business loan that you will repay with the rent that you are saving from owning your own home... now the important question IS: whats a man biggest asset? his house. so i'd rather a man OWN his home and have a loan for his business than vice versa.

also... if you buy your house outright, you will make MUCH MORE money than the man who takes a loan to buy that same house, then selling it at the end of the mortgage. there is more freedom of mind, if you want to move, just rent your crib and take the monthly money to travel and go live in another continent living like a king ...like Africa or any other country where a few thousands of dollars go a very long way.

Akiliogidi:
Good for him...
But then, stop this unnecessary comparison, like Drs in Nigeria don't make money??

Modified:

If you had said 3 yrs, that's quite understandable but 15 yrs?? no na..
I can list countless Drs that are making money, some have even resigned from the govt owned hospitals to concentrate on their clinic. What about the one in my street, married to a barrister, have 4boys all below 17yrs, have 2 SUV, 2 saloon cars & he is into real estate & he his presently building a duplex after destroying his bungalow.

Bottom line be say, Drs do make money in Nigeria too
.
.
.
I am not in the medical field o & even if I am there, I will still travel & I must travel, make man still dey find money, I go come tell my story

Oga, believe me when I tell you that it's the real estate business that's keeping that doctor going, most likely with support from his barrister wife.

The truth is being financially stable as a medical practitioner in this part of the world, notably Nigeria, one has to engage in other endeavours/businesses apart from medicine. Also, God's favour and wisdom to identify opportunities is needed.

The doctor in the topic, just as many in developed Countries achieve such success by practising medicine for just a few years.

You sure that house ain’t acquired via long term mortgage?

Please let’s clarify and corroborate before concluding.

Did he pay cash for the house? We know that most things are bought on credit with payments spread over a long period of time. This house is probably bought on credit via mortgage, there it's no big deal.

Op....tell us d country and what else u doing cos I av a friend who is even now a consultant in the Britain and he isn’t boastful of all these

What I think is happening is, thanks to modern phones, internet et al, people check photos of houses, lifestyles etc overseas, then they hustle for money and visas, with the dream or intention of obtaining similar stuff. And the faster the better.


It makes them feel fulfilled.

salford1:

Na waoh. You don't want Bank to chop

Hello Salford,

I will like to send you a mail, I need to talk privately.

Thank you.

You think its easy to get a mortgage within a short period of time after your arrival? Nope, it doesnt work that way. You have to earn it and one of the ways is by building good credit.

MrBrownJay1:
oh so the dude is actually a doctor....? he could have gotten this mortgage within 2 yrs then. why did he wait 3 long yrs?!

genq:


I'm talking in consideration of time frame - in 3 years post housemanship, a doctor is still in hustle mode, writing exams trying to achieve registrar status, some are still looking for jobs, renting flats and driving old cars.

This is not a thread for discouragement. It's just to point out the enabling environment of the western world where you are able to thrive and achieve great things within a short period of time.

Nigeria kills dreams.

Nigeria buries dream not just kill.

If God blesses You don't say others are lazy

genq:



My guy, there is always an exception to the rule. I'm glad you mentioned he's into real estate because clearly one cannot achieve all this while depending on a doctors salary in naija.

My background: I come from a family of doctors. My father is a medical doctor, my elder brothers all doctors, my sister an occupational therapist, I'm currently in medical school.

My father attained the highest rank he could in medicine and at his age the old man is still completing his "mansion" in our home town - he never had the knack for business so his salary is all he ever depended on - to make matters worse, the man had 5 boys and 1 girl to train and send to school - sometimes, pops had to collect bank loan to sustain the family. He's retired now and its we the children that are contributing to complete his life long building project.

I'm talking from first hand experience so I can confidently tell you that if you ain't doing something on the side alongside medicine in Nigeria, you will die broke!

I don hear...

Me self wan migrate, I want to live a simple & sane lifestyle based on equal opportunity/hard/smartwork devoid of sharpman & who know who & i know say I no go fit live that kind life for naija

Ndipe:
You think its easy to get a mortgage within a short period of time after your arrival? Nope, it doesnt work that way. You have to earn it and one of the ways is by building good credit.

its ell known that, if you have a job in the UK, with the same employer for 6 months to a year, any bank/lender will welcome you with open arms.

useni1:
The problem is that the agreement is written for a 30 years duration which makes it a bad investment.

Mortgage terms can be anything agreed upon between lender and buyer.

There are 5 years adjustable, 10, 15, year adjustable as well as 20, 25 and 30 years fixed as appropriate.

I always look for loans with no early payoff penalty.

chibjohn:
Did he pay cash for the house? We know that most things are bought on credit with payments spread over a long period of time. This house is probably bought on credit via mortgage, there it's no big deal.

What you're missing is the opportunity available to all, not a selected few.............

We know he bought his property via a mortgage and probably bought his vehicle, via a PHP or PCP plan......


This opportunities Nigeria never offered him and would never have accorded him..............