It’s no secret that Lagos home prices are among the highest in the country. Those that got into the real estate market ten years ago have benefited greatly from this insane price growth that Lagos’s market has experienced. For those who are looking to take that leap into homeownership now, I’m sure you’re wondering when the best time to buy a house in Lagos may be.
While there’s no right or wrong answer, as everyone’s scenario will be different, here are a few helpful indicators that it may be the right time to buy a house in Lagos.
The Best Time To Buy A House Is When…
When You Have a Down Payment
If you’ve got the funds saved for a down payment, you’re already ahead of the curve. With the average Lagos home costing ₦35 million in July, you’re expected to have a downpayment of (at the very least) ₦5 million or ₦10 million if you want to avoid paying mortgage insurance.
If you’ve got the funds to buy your first condo, that means you can get your money to start working for you today while also putting a roof over your head.
When You Know You Can Handle the Payments
Having the down payment funds ready to go is one thing, but you also want to know that you can handle the mortgage payments. Luckily, the Nigerian government makes you pass a Stress Test to qualify you for your mortgage.
What the Stress Test serves to do is ensure homebuyers are able to afford their mortgage payments should interest rates rise or — God forbid — you lose your job and need some time to recover. In fact, now may be the best time to buy a home since the stress test qualifying rate recently dropped from 5.34% to 5.19%.
When You’re Ready to Be a Homeowner
This may seem like a no-brainer but sometimes we’re not ready for the reality that comes with being a homeowner. With years of being a renter, you’ve had the great fortune of having all of the little annoyances that come with being a homeowner taken care of for you.
It may be the best time to buy a house if you’re ready to take on the headaches of unexpected appliance repairs and extra annual fees like property taxes. Mind you, these really are a small price to pay for the sweet equity gains and pride that comes with being a homeowner in Lagos.