Statistics as of 2020 show that an average Nigerian is willing to rent than buy a piece of real estate in Nigeria. This can be attributed to the demand side of Nigeria’s housing market which was analyzed based on the level of income and demographics. As of 2019, the Nigeria population exceeded 200 million in which the people in the urban areas were larger than the people in the rural areas. In lieu of this, the limited affordability of housing for many Nigerians, most especially the ones in the urban areas is due to low incomes as a result of low economic recession and exchange rate devaluation that has reduced Nigeria’s purchasing power. And this can only be curbed if we have progressive policies and programs can be made to average Nigerians as to how they can have access to affordable land and a variety of housing options.
With the increase in growth in the Urban areas more than a million housing opportunities will be needed.
Having analyzed that, the big question is should I buy a piece of real estate in Nigeria or continue to rent?
Renting has its own benefit due to the flexibility and little to no responsibility. Although people always think buying real estate is more like a sounding decision than to rent. In addition, renting means you can move out immediately after your lease end and on the other hand, you can also move once your landlord or landlady sells the property or turn it into something else.
Another good thing is that if you rent, you tend to know the amount of money you are paying monthly. Also, the cost of maintenance of your housing is always done by your landlord.
Another major disadvantage is that there is an unpredictable increase in the prices of rent each you want to renew your lease. The biggest myth about real estate that people tend to have is that you are “throwing money away” every month. However, that is not true because you need a place to live if you cannot afford to buy real estate.
While you buy real estate in Nigeria, you tend to have the pride and prestige of ownership, sense of stability. And you know owning a piece of real estate is touted as a way of building wealth and at the same time, your home can lose value if you do not consider the right location when you buy real estate. The overall cost of buying real estate is always higher than the overall cost of renting a piece of real estate.
However, when you own your own property, the cost of maintenance will surely be on you so also is the cost of renovation.
To rent or buy real estate depends on your income. ‘Cut your coat according to your size’ as the adage says. Avoid people that make you feel inferior when you rent a home. Everything just falls on comfort and your vision of life. Although it is advisable that as you plan to rent, so also you should plan to buy real estate in locations with good investment prospects so that you won’t spend on rent throughout your entire life.