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By Biola Lawal
Abuja, May 15, 2018 (NAN) Dr Ibukun Adebayo-Adebayo, a financial advisory expert has urged Nigerian youths to aspire to own a home by age of 30 to live stable and accomplished lives.
Adebayo-Adedayo, a medical doctor-turned financial advisory expert, made the call on Tuesday in Abuja while speaking with the News Agency of Nigeria (NAN) on house ownership by middle income earners.
She advised the youths to start planning to own a house from the moment of their first employment.
Adebayo-Adedayo noted that “home ownership is crucial to financial freedom, increases net-worth, provides rental savings, and increases investment and leverage potential.
“Imagine planning to own your home by the time you are 30 years old; and beginning to work towards it from getting your first job; having a space that is truly yours signals stability and accomplishment,” she said.
She discouraged youths from sinking into rent payment syndrome, explaining that the amount going for rent payment could be invested in mortgage payment for eventual ownership of a property.
She urged youths to focus on buying homes with convenient payment plan or on a mortgage, noting that with a payment plan for ownership, “you begin to pay yourself rather than paying your landlord”.
She said that if well-planned, and with the right advisor, combining the annual rental savings with annual capital appreciation of the house purchased, mortgage rental payments would be less.
“This implies that if well-structured, value addition is greater than value expended on annual mortgage rentals; plus the sense of security and stability that owning your home delivers which is unquantifiable intangible value.
“In contrast, house rent is plain vanilla expenditure which provides the renter with no returns, asides providing you a place to lay your head.
“In addition, all further expenditure on house repairs and maintenance also hold no long term value for the renter.
“Finally, rent puts you at the mercy of the house owner with respect to major house repairs, and rental rates,’’ she emphasised.
Adebayo-Adedayo noted that many young people and families shove home ownership aside as a task for the “later” future and resort to paying rents perpetually.
She urged youths to “look at the options available, speak to real estate advisors and work with experts in the industry to find an easy approach to own a home.’’
She advised against the perception that “the process of buying a first home is daunting and not easily surmountable.’’
Adebayo-Adedayo said that with increased awareness, education and advocacy information about ease of home ownership would make the process appear less arduous.
“Nevertheless, it is imperative to note that when appropriately planned and structured, the hurdles of home ownership become significantly less and easier to transcend,” she said.(NAN)
BL/JEO/GY
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Edited by Janefrances Oraka/Grace Yussuf