Homeownership is something that many of us dream of. Owning a home means putting down roots and having a space that is truly yours. For many people, owning a home is top in their prayer request list as something they want God to help them achieve, while for others, it is their worst nightmare.
It’s a significant moment in your life when you finally own a home. Buying a home is one of the biggest financial decisions you will make. When you think about buying a home, many questions will come to your mind. It’s important to consider how your finances and lifestyle will be affected by this decision. It makes sense to review all the advantages and disadvantages of becoming a homeowner before making this big commitment.
Here, we have listed out some points that will help you examine the pros and cons of owning a home, based on your personal desires, plans and general financial position:
Benefits of Owning Your Own Home
There are many financial and personal reasons why you should own your own home rather than rent. The obvious reasons include pride of ownership, building your equity instead of someone else’s, no more landlords, and many more.
Social Benefits
When you own a home, you will feel close to the community. You would begin to feel more attached to the city and its people. You will find yourself more involved with community events like what is happening with the schools, roads and shopping centres in your area. Also more people interacts with you to find ways to develop the community.
Freedom
After you own a home, you will find yourself in more control of your immediate surroundings. You can change things and decorate as you wish without worrying about approval from the landlord. The home is yours. You can upgrade and add new amenities that appeal to your lifestyle. You do not have to ask for someone else’s approval if you think to remodel the house. Your home truly is your castle.
Feeling of Pride
Another important aspect that cannot be overlooked is the pride that you feel when you own your own home. Once you buy a house, you will be able to prove that you can achieve any monumental goals and can give your family the security and commitment it needs to move forward in life. Once you have built up equity in your first home, you can leverage your equity to buy a nicer home later.
Homeownership is an Investment
A home is an asset that increases in worth over time. A house you bought for a million Naira few years back, may be worth twenty just five years after and the value keeps rising. This creates a better reinvestment opportunity.
Homeownership is a basic Need
Having a roof over our heads is one of the most basic human needs. This need is usually met in the form of owning a house or renting one. The final decision on which to settle depends on our income level, current financial well-being, or pure preference.
That said, owning a house of your own is a culturally significant status, especially in Nigeria. As such, it is a dream for most people to become Landlords one day. Reality is, however, unlike a dream. According to recent data from Business Day, the house ownership rate in urban areas in Nigeria is less than 35 percent. This implies that the majority lives in either free houses or rented apartments. Thus, making a financial decision on house rent payment is an annually recurring event for most people.
Saving monthly is a sure way to free yourself from the frightening ‘rent month’. If you save 15 percent of your monthly income into a separate ‘Home” savings account, you automatically would have enough in five years or fewer to buy a land or an apartment. Easier said and done right? We know, yet it’s not impracticable.
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