It happens. You manage to finally buy or build your house in Nigeria, and then, for a number of reasons — a new job in a different state, japa to a new country , new priorities — you need to move out. You may decide to sell or rent it out , which can be a really tough decision either ways. This is when the question of whether it’s better to rent vs. sell comes into play. Before you decide which one is best for you, here are important factors to consider.
Selling Vs Renting Your Home
Can You Rent Out Your Home?
This is the first question you need to ask yourself. Is it possible to rent out or sublet your home? While subletting policies may vary from state to state and even city to city, there’s usually no restrictions when you own your home. What type of house is it ? It is a duplex or a bungalow? Can you rent our the whole house or individual rooms? Will you make more by renting out the whole house or individual rooms ? While it’s not so common, depending on where your house is located, some estates may require approval of sub-letters. If you own your single-or fully detached home, there’s no restriction to who can live there.
Do You Have the Time and Patience to Be a Landlord?
Being a landlord in Nigeria is no easy task , this is why many landlords handover their homes to real estate agents. When the pumping machine has an issue or another security levy is being imposed by the community, your tenant will call you. Will you be available ? Do you have the time, skills and patience to address the situation promptly? And if your tenant is the troublesome type— constantly creating wahala in the building or being late with payments — are you prepared to deal with all the eviction troubles and even possible court appearance? If you do not have the time and patience you can consider hiring someone to support you or sell the house. But of course, that final decision solely depends on you.
What Is Your Home Worth?
If you need the money right away for a payment on another home or some pressing issue, selling your house makes the most sense.However, if you’re not in a hurry, you could maybe exercise a little patience. To figure out whether it makes more sense to rent or sell your house, you need to research what your place is worth in either scenario.
How much will you get if you sell that home today ? You can do this by checking what other similar buildings around your area are selling for.
And here’s another useful tip: If you renovated your home recently (painting, pop, stamped concrete, screeding) add those costs to your original price and compare it to the current market prices. This can be an easy way to settle the rent vs. sell debate: Will you make more profit — or will you lose money? Don’t forget to include the additional expenses that can come with selling property such as agency fees.
Research Rental Prices in Your Area
Renting out an apartment in Nigeria can be lucrative, especially if yours is in a good neighbourhood with steady electricity and security. Compare current rents in your area, You may also want to calculate a five percent rent increase although you can leave the rent the same to make good tenants stay longer. Once you put all these factors together, take a look at the total. Is the price enough to make it worthwhile for you?
What about the current economy ?
The Nigerian real estate market can be quite unpredictable. That’s why there’s no direct answer to the question of whether to rent vs. sell. The Nigerian economy is constantly changing with prices rising and falling. If the economy doesn’t look too good, it may be the best bet to rent as there will be more sellers in the market. You could rent out your place for a few years and sell at a later date when sales prices go up. On another note, if you can’t get a rent that’s profitable for you, or if your neighbourhood is becoming a prime location for first-time buyers, it may be in your best interest to sell while the market is still hot.
Final Decision Regarding Rent vs. Sell?
Regardless of your decision to rent or sell, you should make your house look its best to command the highest sale or rental price. Bear in mind that the changes and upgrades you choose to do to your home may not be the same, depending on whether you decide to rent or sell your home. For instance, an old school/ outdated kitchen in a desirable neighbourhood may be fine for a renter but could be a deal-breaker for an intending buyer.
If you’re selling your house, know that you’ll need the services of a real estate agent or a property management company to assess your apartment and make sure it is ready to hit the market. Make sure to complete any unfinished changes or necessary repairs before you list your home for sale. Many people like to take the stress off and hire a real estate agent to handle the entire process of selling but it is also possible to list it yourself, which can help save yourself the extra agent fees.
If you’re renting it out, make sure your house is a solid rental property. Ensure that it ticks all the boxes for the basic requirements for habitability: electricity , water, waste disposal , no leaking roof, no water leaks, etc.