Should you buy land or a house in Abeokuta? As someone looking to invest in real estate, this is a decision you’ll need to make. You’ll need to decide whether to purchase land and develop on it or simply purchase a home directly.
At first glance, the latter appears to be easier and more lucrative. But is that so? Which is better? To answer that, this article compares the pros and cons of buying land to buying a house in Abeokuta.
Pros and Cons of Buying Land in Abeokuta
PROS
- Flexibility: Owning land gives you more control over your property. It offers you more flexibility as regards what you can do with it. You can choose to build on it, lease it for agricultural purposes, or hold onto it.
- Appreciation: The more time passes, the higher the value of land increases. That’s no secret in the real estate industry. So, if you choose to buy land (especially in a well-known or fast-developing area), you can make a great profit once you sell.
- Lesser Initial Cost: As someone new to real estate and looking for ways to invest quickly, buying land may be your best choice. And that’s because it generally has a lesser initial cost than purchasing a house. Considering the cost of construction, this is only expected.
CONS
- Development Costs: If you’re planning on buying land and then building on it, you may find yourself spending more than you would if you just bought a house directly.
- No Immediate Income: If you purchase land, don’t expect to make anything immediately. That’s the simple fact. You’ll have to wait till you’ve completed your building or till the value has appreciated enough for you to resell.
Pros and Cons of Buying a House in Abeokuta
PROS
- Rental Income: This is one of the common ways real estate investors make their profit. By buying a house, you can go ahead to rent it out to tenants for an agreed price. While finding tenants may take a while, you’ll generate income quicker than buying land.
- Appreciation: Similar to land, houses also tend to appreciate over time. This is especially so when the house is in a popular location or when it’s available at a time when housing is needed in the area.
- It allows you to avoid the cost and stress involved in building a house yourself. If you decide to purchase a house directly, you’ll be saving time and money.
CONS
- High Cost of Maintenance: When you own a house in Abeokuta or any other location, you have to consistently spend money to maintain and repair any damages. This can gradually and unknowingly eat away at your profits. On the other hand, you’ll rarely have to spend anything to maintain your land. You may even decide to visit it occasionally.
- Lesser Resale Value: As mentioned earlier, the value of houses tends to appreciate. However, depending on several factors, that may go the other way. One factor that plays a crucial role here is age. The physical structure depreciates as it ages. In addition to that, if the design of the house is outdated, you may find yourself selling for less.
However, there’s one thing to note: While the physical structure may depreciate, the value of the land itself appreciates.
Which is Better: Buying Land or Buying a House in Abeokuta?
With all that has been said, should you buy land or a house in Abeokuta? Well, it depends. It depends on your purpose and what you have in mind to achieve with your real estate investments.
If you want to start earning from your investment quickly, purchasing a house will be the best option. On the other hand, if you want to spend less and are willing to wait a considerable period before you start earning, buying land will suit you best.
So, analyze your goals. Once you do, choose the option that best suits you. Either way, buying land and buying a house in Abeokuta are both great ways to invest in real estate.
