Mortgages work in such a way that you agree to pay a chunk of the property’s price, known as your deposit, and the bank agrees to fund the rest over a set period of time, usually 25 to 30 years, charging you interest for the privilege. Furthermore, the bank requires you to pay up in installments, depending on which payment plan you choose: whether monthly or annually.
So, my brilliant suggestion, which you read in the topic, is that after buying a house with a mortgage, you can decide to rent it out at a favorable amount so as to pay up the mortgage fees using the gains from renting out the house. Sounds cool, right?
You may be wondering why many people do not adopt this. Well, I believe it’s not what everyone does that makes for the best approach as best approaches result from the courageous decision of one unique individual. Going back to your question…why doesn’t everyone do this? I think it comes down to a few things:
- Having to find renters all the time
- Managing the property takes time and is a hassle at times (making repairs, etc.)
- Simple in-action. Most people “know” how to make money, but very few take the steps to do it.
Having to find renters all the time
I see this as a trivial issue since online real estate sites like ToLet.com.ng exists and you can find someone to rent your property in a short while. More so, you don’t have to bother about a tenant that leaves before your mortgage repayment is due, you can always find a new tenant with the same site.
Managing the Property
This, for me, is another trivial issue. If you feel it’s a lot of burden for you managing the property, why not find a property manager to handle the management? Trust me, employing a property manager wouldn’t affect your budget for repaying the mortgage. With proper negotiation and calculations, you would still remain on the safe side of your budget. At, ToLet.com.ng, we are also committed to property management.
This is where the problem lies for most people. Now, that you see this as an awesome idea and are ready to get a mortgage, don’t hesitate, simply following these 6 steps:
- Decide on the property you wish to buy
- Get the best mortgage service
- Get qualified for a mortgage
- Find a tenant for the property on ToLet.com.ng
- Find a property manager as well
- Pay up your mortgage in no time
If any of the suggestions here is unclear to you, feel free to ask your questions in the comment section below and also read the 6 steps to Getting a Successful Mortgage in Nigeria in details in my next article here.
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