Money/Finance Tips/How-tos

10 Things to Consider When Buying a House in Nigeria

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Buying a house is a great feat that requires a lot of thought and money. Buying a house is not just about acquiring another property, it is an investment. At times you could be selling and buying a house at the same time. This is common with families that have recently increased in size. There are numerous things to look for when buying a house. In order not to miss out any item, you can create a checklist of things to look for when buying a new house or things to buy for a new house. It is also important to be informed about the terms and conditions of buying property in the given city, state, or country of your desire. In considering how long the process of buying a new house is, you must remember to be patient, so as to not make a bad investment. You must also know the things a house should have if a property is being marketed to you. There is no definite figure of how much money you should save to buy a house because the value of properties varies with time, place and style.

Here are 10 things to consider when buying a house in Nigeria.

  1. Finances

If you have decided to buy a house, it means the funds to purchase a house is available. At the same time, the available finances have to be considered before buying a house of your own. It is important to buy a house you can afford. This will prevent you from running into debt. The available finances will determine, the location of the house, the number of rooms, the type of house you can buy etc. You must ensure that financially, you are in a good position to purchase a house to avoid going bankrupt. You can use a debt-to-income ratio as a guideline to analyse your finances, though it is not commonly done in Nigeria.

  1. A realtor

Before buying a house, it is important to consider a realtor. You have to consider whether or not you want to go through a realtor. Anyone living outside of Nigeria would say it is not possible to sell a house without a realtor, however, in Nigeria, it is possible. If you are going through a realtor you have to ask yourself if he or she is trustworthy, a professional, affordable and even available. It is always advisable to use a realtor because they understand very well what is required of buying a house. They are also conversant with the real estate laws and a good realtor will guide you through the process. A realtor will also save you the stress of embarking on the primary house hunt.

  1. Family size

When buying a house, you must put the size of your family into consideration. If you have the finances to purchase a sizable home, then it is essential to purchase one that will fit your whole family. If you are single and don’t intend to build a family in the house you wish to buy then there really is no need to purchase a 5-bedroom home, unless you wish to show off your wealth or you have friends and extended family who stay over from time to time. Also, considering your family size will also save you some funds in the near future because as you have anticipated growth and more, you will not have to repeat the process of getting a new home when the family increases in size.

  1. Location

The location is the second thing that should come to your mind when buying a house in Nigeria or any other country in particular. You have to be sure if the location is easily accessible, is it in the city or village, are there schools nearby, hospital, leisure areas etc. You must consider the nearness of the location to your key destinations which are work, school, hospital, family, market and leisure spots. This is essential to create comfort. Also, when considering a location, you have to consider the water supply, power supply, roads, crime rate and security. These are the key things that may or may not cause discomfort to you as a resident in any given community. For example, if you work in Ikeja, Lagos, your children go to school in Maryland, Lagos, your family and friends live in Anthony, Lagos and environs, it will make no sense for you to purchase a house and move your family to Ibeju-Lekki, Lagos.

  1. State of property

Before buying a house, you have to consider the state of the property. By state I mean conditions. A lot of times uncompleted structures are sold, and the new owner finishes up the home to their desired taste. Therefore, before the big purchase you have to take into consideration as to the state of the property, if the property is good to go, an old house, abandoned house, or a fixer-upper. This will determine your extra cost of renovations. If renovations are not part of your budget, it wouldn’t be wise to purchase a house that requires renovations.

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  1. Is it a forever home?

An important question people forget to ask themselves before buying a home is ‘is it a forever home?’. If you intend to live in a house for as long as possible, it would be wise to buy one that will serve you for a long term. You must anticipate family size, retirement, your career and future needs. This will help in picking a forever home.

  1. Current needs

It is important to outline your current needs with the house you wish to purchase. If your major need is to build your assets, then you can buy any house you wish too, however, needs vary. Another need could be to start a family, move out of your parents’ home, be closer to work, a better view, and more. Your choice of a house will directly reflect your current needs. Also, your current needs will translate to the purpose for which you want to buy a house.

  1. Cost of Furnishing

When buying a house, you must consider the cost of furnishing. At face value it may seem like a living room set and beds, however, there is more to décor than a sofa. A bathroom installation cost is surprisingly more expensive than you can imagine. Yes, the basics are chairs, beds and tables, however, as you decorate you will see the need for more accents that will make your home more like your person. Furniture is not cheap anywhere, hence, you must consider what it would cost you to furnish from start to finish as opposed to buying an already furnished home.

  1. Type of home

There are different types of home. As a soon-to-be landlord, you must consider the type of property you wish to buy. This will only help narrow down your search. You may wish to buy a duplex, mansion, flat, apartment, loft, condo or whatever your heart desires. The type of house you wish to buy will also determine the possible cost of the house you purchase. When you decide the type of house you wish to buy, you can then further filter your search to a number of bedrooms, terraced house and other features.

  1. Resale value

A good property will always have a good resale value. If you ever anticipate a future move out of the house you are going to purchase, it is essential that the home has a good resale value. To determine the resale value, you must be well informed about properties, locations and trends. Discussing with a realtor and doing your research, you will gain knowledge about buying a profitable house because then, you would be making a well-informed decision. Before purchasing a home, it is ideal to make a forecast given current trends, which can determine its resale value. This will fetch you enough money or even more money whenever you wish to resell. Sometimes the resale value is not the problem, it could be finding an interested buyer. Some locations tend to depreciate to the point where nobody is willing to purchase properties there, even at a giveaway price.

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