Smart Tips Own Your First Home Debt-Free in Lagos this 2022
If you’re looking for your first debt-free home in Lagos (one of Nigeria’s most expensive cities), this is it. Every human being has a natural desire to improve their lives to the point where they can afford their own dream home. Only a few people, however, can reach this goal. It is a goal that the vast majority of people do not achieve. It’s not that they don’t want to. But it’s because they don’t have a clear road to go down. And if it’s something you’ve always wanted to do. Let us teach you how to accomplish it. Before purchasing your first home, there are two important considerations to consider.
These criteria will impact how quickly you can afford to buy a home and if you can afford to pay off your debts. The goal of your first home is the first aspect, and your mindset and approach are the second.
1. Why Should You Buy a First Home?
The purpose of a first home will significantly impact how quickly the objective of a first home is met. The purpose of a first house is varied for various people. However, if you want to be debt-free, you must concentrate on one goal at a time. The explanation for this is straightforward. You have a limited budget at this point, so it’s best to concentrate on one thing at a time.
Second, you’re doing it for the first time. Therefore you’re going to make mistakes. Third, the smaller the objective you set for yourself, the faster you’ll be able to buy other residences and move up the property ladder. If you approach your first home appropriately, you can own three types of homes. The Starter Home, often known as the First Home, is the first. The second type of home is a dream home or aspirational home. The third category is real estate, which generates income. It can be used for commercial, residential, or mixed-use purposes. In your first home, you may be able to attain all three of the residences.
It is a mistake to do so on a restricted financial plan and when your experience is low. You will make a less than impressive display with it and never really accomplish every three objectives. The best reason for a first home is to assist you with acquiring independence from the lease. Killing rental expense is a commendable objective to connect to your first home, particularly to do it rapidly. Also, continue to claim other more beneficial homes.
So since you know the three sorts of homes and the reason to connect to your first home, let’s check out the second component that can influence your house purchasing objectives.
2. The Property holder Mentality
There are two sorts of outlook and ways to deal with homeownership. The first is the last objective outlook, and the second is the Ever-evolving attitude. Perceiving where you should be is basic for progress.
The Last objective outlook is the mentality that moves toward their first home as though it is their last. They attempt to assemble every one of the three homes normally on a restricted spending plan. What’s more, they make a lackluster display with it. They do this since a feeling of intrigue drives them. They set unreasonable targets, overbuild their homes, channel their accounts, and penance their monetary security.
The more terrible of everything is that they assemble these houses in distant neighborhoods with inferior quality occupants, low lease capacity, and the capacity to order premium costs. The outcome is monetary pressure, purchasers’ regret, a strain on their wellbeing, and a devalued way of life in retirement. It is difficult to settle on a decent choice when the experience is low and the feeling is high. The way to build the first home is to keep it straightforward. Zero in on acquiring independence from lease, get familiar with the examples, and construct different homes.
The Radicals approach homeownership differently. They realize that their first home is not their last. And their appetites and their budgets will change. They set realistic goals, build homes that meet immediate needs and finance their homes with hard work and discipline. The result is financial peace of mind and the ability to transition into other homes more quickly.
So, there’s one thing in common, whether you have a bottom-line mindset or a growth mindset. We all struggled to finance our first home out of pocket.
How to Finance Your First Debt-Free Home in Lagos
The main challenge that people trying to own a home face is how to finance their first home from scratch–Pocket money. There are expensive and inexpensive options to choose from. One of the less expensive options is to finance the construction of your own home through your hard work and discipline.
Please do not take out a loan to buy your first home because it limits your chances of accessing the property. The second reason is that everything you do the first time will be gone bad before it is done well. Trial and error with other people’s money increase your financial risk. Third, financing your own home out of your pocket helps keep your budget in check. The temptation is to increase your budget when you get a loan. So, if you’re ready to finance your first home out of pocket, let me show you exactly how you can do it.
You need to do six things to finance your first home successfully:
1. Move from One Income to Multiple Source of Income
A Single income is too susceptible to fund your homeownership dreams. Having more than one profit asset is the quickest way to attain your goals. To create multiple income streams, combine your part-time income with your full-time income, add solid passive investment income, earn while you sleep, and lastly, have other people work for you. Going from one income to many requires deliberate actions. It also requires access to revenue opportunities and strategic efforts to incorporate revenue streams that can easily work together.
2. Build a Strong Cash Reserve
Owning a home is a cash-consuming business. So you have to maintain liquidity throughout the process. The only way to do this is to build a strong enough cash reserve to meet basic needs. Building a strong cash reserve involves two things. The first is to earn extra income, and the second is to manage the financial needs of your previous life and current lifestyle. To own your own home out of your pocket, you need to create new income streams and maintain a frugal lifestyle. You also have to run an economically viable household if you’re married and bring everyone on board. Without it, it isn’t easy to succeed.
3. Ensure an emergency-free life
Most of what we call emergencies are created and not granted. They are created from our lack of timely decisions and planning. So if you want to live an emergency-free life, you need to plan for possible emergencies. There are three things to do in the event of a possible emergency. The first thing is to prevent it. The second thing is to hoard it. And the third is to transfer it to a third party
4. Choose the right land and the right neighborhood
Simultaneously buying an existing house or building and buying land is a daunting goal for most people. So the least difficult way is to get land first. And this is where good land acquisition comes in. Acquiring the right land is all about investing in the right neighborhood. And certain factors determine the kind of land you should buy. These factors are what we call the end goal factors, and there are four of them.
5. Share and reduce construction costs
By default, everyone builds their own house with their resources. But it is possible to share the burden with others if you choose the correct terrain.
Construction cost-sharing in two ways. First, through a joint venture between you and a developer. Where you bring the land in, and the investor builds the house. Using a developer as an investor and partner to build a house for an agreed reward is one of the most effective ways to build your first home. He brings the capital you need, and the developer lends you his expertise.
A second way to reduce or share construction costs is to partner with friends or like-minded people. If your land is in a desirable location, you will create a huge cooperation opportunity from ordinary people, developers, and investors. The key to success here is answering this question. What kind of land should I buy to entice investors or friends to invest with me? And then focus on getting that piece of land.
6. Build without difficulty rentable and sellable houses
Building a domestic is greater than simply growing a container in which humans live. It is set the use of creativity to layout eye-catching and conversation-beginning structure that stands out. When you construct a domestic that makes humans forestall and be aware, you get automated referrals. And promoting or renting that domestic turns into easy. If your give-up intention is to promote or hire your property, you need to use innovation to create something likable and distinctive. Not to mention you ought to lay our a fortune in your first home.
You may be innovative without being foolishly expensive. The key to achieving right here is recognizing what your goal tenants and consumers want. And to recognize what they may pay an excessive fee for. Unless you’re positive a function will upload cost to the income fee, there’s no want for it. Building houses only for splendor and ego is a waste of money.
Tenants and consumers will simplest put money into your property because they prefer them and now no longer due to the fact you constructed what you like. Ask yourself the question. “What layout factors ought to I innovate into my assets that could make it greater acceptable and command top rate than competing properties? With a few focused efforts, you could locate the answer.
Debt-Free Home: Stabilize Your Income Seek New Opportunities with PlistHub
Financing your first home from your pocket is easy but not easy. To be successful, you need to combine the factors to generate more revenue, invest in the right areas, reduce costs, and approach with the right mindset. If you need help performing any of the steps highlighted in this article, or if you need a homeowner mentor to guide you, we can help.