Reporter

Looking to rent a house? Don’t take this budgeting tips for granted

To rent an apartment or a house, you need a budget and this is precisely why there are some budgeting tips renters should never take for granted. The reason for this is simple – To rent an apartment, you need a plan and that is called budgeting.

Paying your rent does not happen once in a life, which is why you need to understand that paying your first rent should be considered the beginning of your financial plan and not the ultimate goal. To make it easier for you plan the payment of your rent, we will highlight several budgeting tips renters need to take into cognizance. Below are a few ways you can go about it:

Click here to watch weekly episodes of Housing Development Programme on AIT

Keep Things Realistic

The golden rule when renting an apartment is to ensure that no more than 30% of your monthly salary is dedicated to paying rent. What this does is that it allows you to make financial plans for other crucial aspects of your life; especially necessities. For instance, the fact that you are renting an apartment doesn’t mean you’re no longer going to eat, commute to work, pay for your internet subscription or save for other emergencies that might come up.

Sticking to the plan might be quite challenging but it is rewarding if you can achieve it. For instance, it won’t make much sense if you are repaying a car loan and you begin to default on payment because you have to use a major portion of your salary to pay your rent. A conscious effort has to go into budgeting for your rent. If you save 30% of your salary for a year and it is not enough to renew your rent, then you need to ask yourself if you are being realistic with your plans.

In a situation where your options are really limited and you have to rent an apartment that gulps about 50% of your salary monthly, there’s a way out. What you need to do is to make a budget cut on some other things in order to achieve financial equilibrium. For instance, instead of driving and paying for parking space at work, consider using public transportation.

Make Adjustments in Your Spending Habits

Cutting back on your spending might not come across as a fun thing to do but it comes with loads of benefits. The truth is that if you find a way to separate the things you need from the things you want, what you’ll end up with is a growing list of things that you can do without.

Budgeting tips renters need to prioritize usually revolve around being able to make financial adjustments where necessary. For instance, instead of constantly renewing your membership at the gym, you can cancel it and adopt morning/evening runs into your workout regimen. You can also cut down on the frequency of your shopping and attend fewer parties where you are coerced into buying expensive fabrics.

Your goal here should be finding ways to save more of your salary after payday. Budgeting for your rent requires some level of sacrifice and discipline.

Set Up a Monthly Budget

It is not enough to simply draw up a monthly budget. The actual work lays in sticking with your plans and not getting distracted to the point of losing sight of your financial goals. This helps you cut down on impulsive spending. You should be disciplined enough to a point where you know precisely where your money is going because you can account for it.

You can set up a monthly budget based on what works for you but an example of what you can have is the 50/20/30 rule. If you go with this model, you are expected to spend 50% of your monthly salary on living essentials and save 20% of your income. The 30% left is what you can spend on whatever you like.

The idea of having 30% of your salary to yourself is really cool but there’s a little snag and this is the fact that keeping your living essentials within 50% of your salary is not an easy thing to do. In other words, It’s not easy keeping your rent, feeding, transportation and other essentials within 50% of your monthly earning.

When you are hunting for an apartment, you should put a conscious effort into getting an apartment that fits into the 50/20/30 monthly budget or any other formula you have come up with, which works for you.

Get a Roommate

Having a roommate helps you cut back on a lot of money you would have spent on paying your rent. However, if you have to get a roommate, you need to do it the right way, which is to ensure that the landlord is aware of your plan to add someone to the existing lease.

If you try to play a smart one on the landlord by bringing the roommate in through the back door, this could get you evicted especially if this negates the rental agreement. You should remember that your landlord has to screen your potential roommate the same way you were screened.

In a situation where the landlord decides to add something extra to the rent, the fraction would not hurt your plan to save more because your roommate would naturally take a large chunk of the financial burden of the rent off you. For instance, would you rather pay N500,000 for a 2-bedroom apartment or split this with a roommate by paying N300,000 or N250,000; depending on what both of you agree on.

Remember to spell out some ground rules to ensure both of you agree on how to coexist in peace. You can’t just assume that this person should know what to do and what not to do.

Cook at Home

When it comes to practical budgeting tips renters appreciate in relation to food, there are two kinds of people – Those who cook at home and those who eat out. It really doesn’t matter what you’re buying; whether it’s noodles and fried eggs from the Aboki across the road or dinner at a Chinese restaurant every other night, eating out is a more expensive option compared to cooking at home.

If you’re serious about drawing up a budgeting plan for your rent, then, it’s time you learnt how to cook. If you already know how to cook, better for you. The goal here is to spend less on food outside the house.

Final Thoughts on Budgeting Tips Renters Should Adopt

Drawing up a budget is one thing and adhering to it is a different ball game entirely. You need to avoid distractions and conduct your financial affairs with this goal in mind.

If you clearly define your goal, it is easier to work towards it. For instance, your goal for the year can be to save up N800,000 for your next rent as well as paying N30,000 monthly towards repaying your car loan. If you have a family, your other goal might be to save N100,000 quarterly to pay your child’s tuition.

The urge to spend that extra money will always come but it’s up to you to look away and focus on the things that really matter to you.

Source: Samod Biobaku/ Private Property

Premier league winner:Zlatan Ibrahimović’s former mansion tops chart of Rightmove’s most viewed UK properties in 2018

A six-bedroom mansion in Cheshire, once reportedly rented for £32,000 a week by former Manchester United footballer Zlatan Ibrahimović, was the most-viewed property on Rightmove in 2018.

The mansion in the village of Hale, one of the fanciest parts of Cheshire and a favourite with footballers, is now on the market for £5 million, after the Swedish striker moved to play for LA Galaxy.

Click here to watch weekly episodes of Housing Development Programme on AIT

Recently built with an ‘Italian influence’, the house features a games room, wine cellar and gym in 10,000sq ft of living space.

Each of the bedrooms is en suite and some also have dressing rooms, all decorated in a plush dark grey and wood color scheme.

As you’d expect from a Premier League footballer’s home, the detached home is extremely private and secure, with a top of the range security system. It’s set behind gates with a private driveway and screened by mature trees.

There are extensive landscaped gardens as well as a decking area with built-in grill for outdoor entertaining.

THE BEST OF THE REST

Of the thousands of properties displayed on the property portal in 2018, all five of the most popular were magnificent mansions set in acres of grounds, spanning the UK from the Highlands in Scotland, to the Devon countryside.

A combination of history and glamour was the biggest draw for people indulging in one of the UK’s favorite pastimes – browsing property porn online.

 

2Glenborrodale Castle, Scotland

The second most-viewed home of 2018 was a 16-bedroom castle in Scotland, on the market for £3.75 million.

Built in 1902, the baronial mansion overlooks Loch Sunart and has a boathouse and jetty.

The sale includes two uninhabited islands and a dramatic terraced garden.

Previously a hotel, the Glenborrodale Castle also has staff accommodation, a gate lodge and coach house.

3) Cappers Lane, Cheshire

£5.95 million Cheshire mansion on a 93-acre estate was the third most-viewed home of 2018.

Approached via a tree-lined drive, the property comes with a staff barn and three separate cottages.

There are four reception rooms, an orangery, an indoor swimming pool, Jacuzzi, steam room, gym, wine rooms, media room and games room.

The country house estate was once owned by the Tollemache family whose lineage can be traced back to before the Norman Conquest.

4) The Park, St Albans

A cinema room, parking and car lift and seven en suite bedrooms and eight receptions rooms are all part of a St Albansnew build, which was fourth on the list.

Underfloor heating, built-in music system, Lutron lighting and security cameras are further luxury touches.

5) The College, Devon

The poet Samuel Taylor Coleridge’s family home in Ottery St Mary, Devon, was the fifth most-viewed home on Rightmove’s list.

Appropriately, given the property’s literary heritage, the entire ground floor of the west wing of the house is taken up with a wood-lined library.

Designed for Lord Coleridge’s 18,000 books, it’s the largest library west of Salisbury.

With ten bedrooms, a billiards room, a tennis court, swimming pool, Victorian bird house with aviary palm house and party room, the house is on the market for £7 million.

Source: Homes and Property

Swiss office real estate market thriving

The office real estate market in Switzerland is enjoying a positive outlook, driven by economic recovery and accompanying job growth, according to a Credit Suisse studyexternal link report.

Credit Suisse says office space is now playing a more prominent role than residential housing in leading a recovery in the real estate market.

Following an “exceptional” performance by the Swiss economy in 2018, employment growth has increased significantly – especially in the corporate services, health, and information technology sectors – which has reinvigorated demand for office space.

Click here to watch weekly episodes of Housing Development Programme on AIT

The growth represents a rebound from last year, which saw these sectors lose some 10,000 jobs, the report states.

Meanwhile, traditional office sectors like financial services, wholesale trade and telecommunications are still seeing reduced employment and are no longer driving demand for Swiss office space.

The growing demand has been seen mainly in the office markets of large urban centres, which are being targeted by “companies seeking to position themselves as attractive employers for skilled labor”, according to Credit Suisse.

Source: Keystone-SDA/swissinfo.ch/cl

Florida City for Foreign Homebuyers

Miami retains Florida’s top target city for foreign buyers in 2018

According to the National Association of Realtors 2018 Profile of International Residential Real Estate Activity in Florida, Orlando held steady in 2018 as the #2 destination of choice for Florida’s international homebuyers. Nine percent of all of Florida’s international homebuyers opted to purchase a property in Orlando.

“The international real estate market is important to the sustainment of both Orlando’s real estate industry and its overall economy,” says Orlando Regional Realtor Association President Lou Nimkoff. “The profile’s results show that foreign buyers accounted for approximately 11 percent of the Orlando-Sanford-Kissimmee Metropolitan Statistical Area’s 44,000 home sales during the study period of August 2017 through July 2018.”

Click here to watch weekly episodes of Housing Development Programme on AIT

Orlando was Florida’s second most desired destination of foreign homebuyers in 2018 and captured 9.4 percent of the state’s market share (11 percent in 2017 and 12 percent in 2016). Only the Miami-Fort Lauderdale-Miami Beach area, which drew a whopping 53.7 percent of all Florida international transactions, topped Orlando. The Tampa-St. Petersburg-Clearwater area came in third with 9.0 percent. Those rankings are unchanged from both 2017 and 2016.

Buyer Originations

Orlando area international buyers in 2018 were mainly from Latin America and the Caribbean (47 percent), Europe (18 percent), and Asia (15 percent). From a nation-centric perspective, those from Brazil were involved in 20 percent of Orlando’s international transactions, while Canadian and Venezuelan nationals participated in 8 percent each. China, Columbia, and the United Kingdom each supplied 7 percent of Orlando’s international buyers in 2018.

Several countries made their first appearances on Orlando’s list of major foreign buyers in recent years: the Dominican Republic, Bolivia, France, and the Russian Federation.

Popularity Rankings

Orlando was ranked as the #2 collective purchase location for international homebuyers from four of Florida’s six top foreign buyer markets in 2018. This year Orlando garnered the #3 spot from the United Kingdom, which in 2016 drew 29 percent of all of that country’s Florida real estate buyers and earned its #1 ranking.

Financial Matters

International buyers contribute significantly to Orlando’s dollar volume statistic. “Foreign buyer purchases tend to involve higher priced homes and accounted for 19 percent of Florida’s total residential dollar volume during the study period,” continues Nimkoff. “That same 19 percent equates to $1.9 billion when applied to ORRA members’ $10.1 billion worth of home sales during the study period.”

International buyers are also very apt to use cash because they might not have the required U.S. credit to obtain a mortgage from a U.S. source. In fact, about 67 percent of all Florida’s international transactions in the study period were all-cash (down from 72 percent last year), with Canadians (84 percent) and United Kingdom nationals (81 percent) most likely to have gone that route.

Orlando’s international buyers purchase properties for both vacation and residential rental purposes. Those from China, Columbia, and Venezuela in particular like to take advantage of Orlando’s steady stream of tourists and invest in a rental property while those from Canada and the United Kingdom were most likely to purchase a property for private vacation use.

With its mix of resort, urban, and suburban areas, Orlando is able to accommodate foreign buyers’ ever-changing location preferences. Thirty-seven percent of Florida’s international buyers selected to purchase in a central city/urban area, with another 37 percent selecting a suburban area. Only 15 percent purchased in a resort area during the 2018 study period, down from a high of 53 percent a decade ago. This drop is consistent with the declining share of Canadian and U.K. buyers, who have traditionally preferred such locations.

 

How I bought a house without mum and dad

According to a report published yesterday, Tuesday 4th December 2018, buying a home is almost impossible for young people without access to the bank of mum and dad. 

House prices may have risen by 173% over the last two decades but there are still some millennials who have managed to buy homes without money from their parents. Here’s what a few young people have to say about how they got their homes.

Brad Pugsley, recruitment agent, 30, Fleet

“I was 26 when my wife and I bought a two-bedroom house for £245k.

“I moved out of home when I was 18 and learned quickly to always put money aside.

“When I was 21 I moved in with my girlfriend. We were renting a one-bed for about £800 a month and both earning about £23k a year.

“Despite not having much money over four years we managed to save about £17k. This was enough to cover a 5% deposit we needed as the bank gave us a 95% mortgage.

“I cannot understand how people cannot afford a property, especially with first-time buyers not having to pay stamp duty and only having to put 5% down as a deposit.

“Saving while renting takes a long time, eats into social life, but having your own house is like passing your driving test… having freedom and independence.”

Click here to watch weekly episodes of Housing Development Programme on AIT

Agata Suwala, engineer, 30, Rugby

“I was 28 when I bought my flat after working for four years and earning less than £29k.

“I’m Polish and came to the UK in 2011 for university. I started working in 2012 and rented a room in Coventry for £380 a month. I saved around 40% of my salary each month and still went on holidays.

“I saved up around £14k after around four years. Through Help to Buy I got a 15% loan from the government which got me to the 20% deposit so I could buy a flat for £150k.

“House ownership doesn’t come from earning money – it comes from saving it. Unfortunately British people don’t learn how to do that. It’s spending money they learn, that’s why a majority of people don’t have money to cover an emergency bill, but probably have a leased car or a massive TV.

“Work out what your priorities are. If you want a house don’t go out every Friday but at the end of the day you have your income and what you do is up to.”

Chris King, civil servant, 29, PrestoING

“I bought my first house at 23 years old in 2012 whilst on a £15k salary.

“I dropped out of university in Bristol and got a job back in Preston as a payments officer in the NHS where my take-home pay was around £1,000 a month. I lived at home with my parents and paid them £200 a month in rent.

“I saved £500 each month until I reached 10% deposit for a mortgage.

“I bought a two-bedroom terraced house in an ‘OK-ish’ neighbourhood for £70k. A quick check on Zoopla shows me the value of the house now is still about that.

“I felt really proud which feels weird to say. It was really good to have that independence and to have accomplished something early in life.

“But I think buying a house should support what you want to do in your life rather than being a goal in itself.

“If you want a good career you’ll need to live in a big city to get the best opportunities to progress, and that often means the houses you would want or need to buy are too expensive, and the cost of renting in that big city diminishes your saving power to get that deposit too.”

Source: BBC UGC and Social News Team

 

Registering Properties In Nigeria: A Case For Streamlining The Process

The ease with which title to real properties is perfected enhances the property rights enjoyed by private persons as well as corporates in any country. Land acquisition and security of title and interest in land (as guaranteed by perfection of title), is fundamental to the harnessing of investments, expansion of businesses and the growth of economies.

In recognition of the importance of security of interest and title to land to foreign direct investments, the World Bank, last year, included “registering property” as one of the new indices used in its annual Doing Business report. Hitherto, these indices were limited to: (i) starting a business; (ii) dealing with construction permits; (iii) getting credit; (iv) protecting minority investors; (v) paying taxes; (vi) getting electricity; (vii) trading across borders; (viii) enforcing contracts; and (ix) resolving insolvency.

Click here to watch weekly episodes of Housing Development Programme on AIT

In the 2016 Doing Business Report, published by the World Bank and tagged “Measuring Regulatory Quality and Efficiency”; Nigeria is ranked 185th out of 189 countries rated globally with respect to the “Ease of Registering Properties”. Although Nigeria ranks 169th in the overall Ease of Doing Business Index, it is clearly a disincentive, to prospective investors interested in land acquisition deals (and/or investors who are willing to provide debt capital) when faced with the seemingly daunting regulatory issues as well as the high cost of registration connected with registering title to property or creating security over landed property; more so in the light of the World Bank ranking.

To help with a better appreciation of the legal and regulatory maze bemoaning land matters in Nigeria, this article will expatiate on the process of perfecting title to land in Nigeria, especially as it obtains in Lagos State, with some mention of other States and the Federal Capital Territory. This article will also analyze the challenges encountered in registering properties and creating security over land.

CRUCIAL FOR CAPITAL FORMATION

“In our basic economics, land is a very important asset to capital formation… you can’t start a bank, you can’t start a business, you can’t farm; you can’t even extract crude oil without identifying a particular piece of land or oil well (embedded in land). So it’s the basics of capital formation, it’s the basics of prosperity; it’s the basics of economic well-being and the basics for job,” said Babatunde Fashola, the erstwhile governor of Lagos State, at the signing into law in January 2015 of a Bill to consolidate all land-related laws in the State.

As a valuable investment vehicle and collateral for obtaining credit, property is a catalyst for growth. However, property-backed investments and transactions (such as leases, mortgages, and assignments) can only be properly and securely concluded, where the relevant property transaction is appropriately registered in a depository, usually called the “lands registry”, for ease of verification. Indeed, countries where property registrations are governed by investment-friendly and seamless legal and regulatory frameworks enjoy favorable perception from investors globally.

Source: Banwo & Ighodalo

Translate »

You have successfully subscribed to our newsletter

There was an error while trying to send your request. Please try again.

Housing News will use the information you provide on this form to be in touch with you and to provide updates and marketing.