14/10/2024
The long-term costs associated with both Rent and Land.
When I look back at my stay in university days...
Or should I say
Do you remember your house rent when you were in 100 level?
You saw how the rent kept adding up , even till you graduated.
And the journey continued, from being single, to getting married, to having kids
From one apartment to the other, different rents,
The endless increment and here you are.
While renting may seem like the more affordable option in the short term, the long-term costs can be substantial.
Rental rates tend to increase over time, often outpacing inflation.
Here is what/will happens when you are a tenant;
Expect your rent payment to increase every year,
You are directly paying someone else's mortgage.
You're not building any equity in the property, which means you're
not accumulating wealth!
you have limited control over your living space.
You may be forced to obey landlord rules.
The worse?
Your landlord might wake up one day and decides to sell the property forcing you to relocate.
You see that there, is the most embarrassing situation you want to be in.
Imagine you have kids and this happens to you.
Owning a home offers a sense of stability and security. You have a place to call your own, and you're not at the mercy of your landlord's decisions.
And just incase you are still doubting…
To determine whether renting or owning is more cost-effective, it's important to compare the long-term costs of both options. Consider factors such as;
your income,
expected rental increases,
potential property appreciation,
and
your individual financial goals.
Real estate investment offers a more financially rewarding path compared to renting.
Here's why:
Owning a home forces you to save . This can be a disciplined approach to building wealth.
Over time, property values tend to appreciate, especially in growing markets. This can lead to significant capital gains.
If you choose to rent out a portion of your property, you can generate passive income to supplement your income or accelerate your wealth accumulation.
And just as you know it,
Rome was not built in a day.
Gradually,
Step by step
You are growing your wealth portfolio.
Are you looking to start building or increase your real estate portfolio?
My name is Avwerote Deborah, Your favourite Real Estate consultant. Hit me up let's deal.