{"id":1908,"date":"2016-09-30T12:17:12","date_gmt":"2016-09-30T12:17:12","guid":{"rendered":"http:\/\/www.tolet.com.ng\/blog\/?p=1908"},"modified":"2018-09-12T11:21:59","modified_gmt":"2018-09-12T10:21:59","slug":"why-is-buying-a-house-considered-a-good-investment","status":"publish","type":"post","link":"https:\/\/propertypro.ng\/blog\/why-is-buying-a-house-considered-a-good-investment\/","title":{"rendered":"Is Buying a House a Good Investment?"},"content":{"rendered":"

I\u2019ve been emphasizing the fact that buying a house<\/a> is better than renting one. In the article, <\/span>Rent or Buy: A Guide to Finding the Right Home<\/span><\/a>, the advantages, and disadvantages of the two options were explained but in my opinion buying a house is a better option.<\/span><\/p>\n

However, you want to make a\u00a0better judgment when considering buying a house.Hence, the following are reasons to back my claims that buying a house is a good investment.<\/span><\/p>\n

\u00a0Sometimes real estate prices increase adequately for people to make money<\/b><\/h2>\n

As in the present <\/span>economic recession of Nigeria<\/span><\/a>, the price tag on houses is higher although the demand is reduced. This is a good avenue for real estate investors\/builders in the country to make more money.<\/span><\/p>\n

House is something you can see (tangible) and people like tangible investments<\/b><\/h2>\n

I think this is self-explanatory. But let me add that investors are more likely to succumb to tangible <\/span>investments like real estate<\/span><\/a> than intangible investments.<\/span><\/p>\n

Getting Value<\/h2>\n

people think they are getting enough value by living in a house, and anything they ‘make’ while selling it is an added bonus.<\/span><\/p>\n

Benefits from real estate transaction<\/h2>\n

\u00a0Various parties benefit every time you buy and sell a house – <\/span>real estate agent<\/span><\/a>, attorney, bank: hence they want you to buy and sell as often as possible.<\/span><\/p>\n

However, the following factors determine when buying a house is a good investment:<\/span><\/p>\n

The price you paid for the house<\/b><\/h2>\n

You won\u2019t agree that purchasing a highly priced house is a good investment especially when the building is of inferior quality.<\/span><\/p>\n

ALSO READ:\u00a0Fulfilled Prophecy: Number of Vacant Houses Increase in Lekki & Ikoyi<\/a><\/strong><\/em><\/p>\n

The rent you would have paid for the house if you rented it instead of buying it.<\/b><\/h2>\n

If the projected amount you would have paid as rent over a substantial period of time is less than the price of the house, you can conclude it\u2019s a good investment.<\/span><\/p>\n

\u00a0Additional expenses that you pay, do not ignore them.<\/b><\/h2>\n

Since the price of a house is exclusive, there are <\/span>hidden costs you may be overlooking<\/span><\/a> but will have to settle sooner or later. Hence, the amount of such hidden cost determines how good a house purchase investment is.<\/span><\/p>\n

ALSO READ: <\/i><\/b>5 Best Ways to Get a Cheap Piece of Land in Lagos<\/a><\/i><\/b><\/p>\n

The price at which you will be able to sell the house<\/b><\/h2>\n

From the seller\u2019s perspective: economic conditions determine how much houses are sold<\/a> just as in the case of Nigeria\u2019s economic recession, developers are forced to sell at lower prices in other to recover the demand being stolen by the recession.<\/span><\/p>\n

ALSO READ: <\/i><\/b>Are Properties in Nigeria Cheaper During the Recession?<\/i><\/b><\/a><\/p>\n

The transaction costs involved: buying and selling is not easy<\/b><\/h2>\n

Don\u2019t forget the following people would need to be paid for the services rendered: real estate agent, attorney, bank offering mortgage etc. <\/span><\/p>\n

Therefore, you would have to weigh the pros and cons of buying and selling a house to determine whether it\u2019s really a worthy investment.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"I\u2019ve been emphasizing the fact that buying a house is better than renting one. In the article, Rent…\n","protected":false},"author":11,"featured_media":1921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_custom_appearance":"","csco_disable_excerpt_posts_layout":false,"csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[30,17,467],"tags":[93,210,152,206],"class_list":{"0":"post-1908","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ask-us","8":"category-featured","9":"category-real-estate-advice","10":"tag-buy-a-house","11":"tag-buying-a-property","12":"tag-investment","13":"tag-real-estate-funds","14":"cs-entry","15":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/1908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/comments?post=1908"}],"version-history":[{"count":10,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/1908\/revisions"}],"predecessor-version":[{"id":11003,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/posts\/1908\/revisions\/11003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media\/1921"}],"wp:attachment":[{"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/media?parent=1908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/categories?post=1908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertypro.ng\/blog\/wp-json\/wp\/v2\/tags?post=1908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}