AlhajiBitcoin:


Who told you ??

The grass is always greener on the other side ??

Kobicove:


The car looks like a Toyota Supra

Kingpin1000:
A house is an Asset while a Car is a liability.
No matter the value or cost of the car, if it is not for commercial purpose, then it's a Liability.

Hashabiah:
This is not an issue of "who told me ". It is common sense any economics textbook will teach you

AlhajiBitcoin:


It depends on the year, the economics textbook was written.

The trend today is that cars are more valuable than houses.

A white man drives his car to 1 million miles over a period of 20 years but in Nigeria, thesame car will last only 5 years in your hands and turn scrap because of your mechanic.

There are used cars in United states today that are costlier than brand new ones.

What I'm saying is that the world has changed. But it will take time before the new textbooks will RECORD TGE CHANGES.

Kayberg:
I'll choose the car.
Sell it, build a house from it and use the remaining to still get a smaller car.
One shot, two kills.

Those choosing A, which of them is A o?

Wait, which Toyota model is that car?

emae009:


I'm in the built industry bro. Buildings depreciate hence they are liabilities, it's the land underneath the building that appreciates thus giving the structure most of its value. Build a mansion and maintain for just 10 years, not going for a 100 here, then ask a valuer to value the building only, you'll be surprised at what your expensive structure is worth.... The most expensive real estate that was pegged at $500million at its unveiling, just 2 years dispite all the money spent on advertising it, the value of that building has reduced.
In conclusion, I'm not saying car is an asset and building is not, I was trying to cancel the notion we tend to have in this part of the world that anything other than a house is a liability. A lot of things other than a building are assets too.

after all that write up, if you have any work or deal about real estate, be it building a house or buying a land in a secure and serene environment. I'm your plug!

Hashabiah:
Bros , ask anybody: a house is still a healthier investment when compared to a car. The life span of a house is 60 years , but a car is less than 10 years . So which is a wiser investment? A house . Period

thebosstrevor1:


So literally, i have no income at all.

What you have written how is it favourable for you?

You own a house on debt, remortgage it to get another debt to build another house when you rent it out, your rental income is to settle the debt, how is your idea a smart move?

BluntTheApostle:


Like I wrote earlier, many factors can come into play.

Yes, buying a house is obviously the better investment than buying a car considering depreciation.

Not necessarily lifespan, because factors like a collapse can ruin the investment. A fire outbreak can also ruin the investment. The neighborhood can become unattractive over time, causing the house to lose value. Houses can wear too with time, especially private houses.

However, a well maintained car with a low mileage on the average can continue beyond 10 years. Cars do not have lifespan in terms of years, but mileage.

sulaak:


A mortgage is what you call efficient debt, tied to your asset and paid gradually over a period of time.

For example, if you own a property valued at N400,000 and took out a mortgage of 50% of the value of the property (N200,000) with a monthly repayment of 2000k every month, your rental income of say N3000 will cover the monthly mortgage repayment, leaving you with a 1000k monthly profit and a property asset that will continue to appreciate in value.

Your tenant will pay off the mortgage the 200,000 that you will release from the property can be invested in a car or buy another property that you can live in or rent out.

BluntTheApostle:


Like I wrote earlier, many factors can come into play.

Yes, buying a house is obviously the better investment than buying a car considering depreciation.

Not necessarily lifespan, because factors like a collapse can ruin the investment. A fire outbreak can also ruin the investment. The neighborhood can become unattractive over time, causing the house to lose value. Houses can wear too with time, especially private houses.

However, a well maintained car with a low mileage on the average can continue beyond 10 years. Cars do not have lifespan in terms of years, but mileage.

Denique:

You stole my comment!

thebosstrevor1:


instead of the owner of the house to enjoy himself, he will paying debts for 20 to 30 years of 2 properties, if he dies during the process, his children will continue the payment or the bank will claim the property.

deepwater:
3 bedroom flat
OP at your age you still do not understand the difference between LIABILITY and ASSET?

Kayberg:


Oga, you can lie o!

sulaak:


The debt on his property will be paid by the tenant living in the property, the money from the remortgage can be invested in building a new house without a mortgage.

His life insurance can easily be structured to pay off the remainder of his outstanding mortgage when he dies. Leaving his children with two debt-free assets

My mother took out a government mortgage as a civil servant and bought one of the low-cost flats in Iponri in the 1980s, she remortgaged the flat and invest some of the money to buy two large plots of land in Ikorodu and sold one plot to fund the construction of her house in Ikorudu. She has paid off the flat mortgage in Iponri and rented out the flat and she retired to Ikorodu to a four-bedroom house and four roadside shops. My mother was an accountant.

thebosstrevor1:


Is 1980 the same thing as 2021?

How many Nigerians have life insurance.

sulaak:


If you have property insurance, just like a car insurance than, then you can protect your house against fire.

Nigeria has a housing shortage with a growing population, if your property is not in Borno state where bandits are your neighbour then there will always be a need for your property as a home or investment for rental income.

BluntTheApostle:


Do you imply insurance to be a part of the investment?

Remember you can insure cars too. You can even insure life.

That is why I am treating both properties without regards for insurance.



It is not a matter of whether you will get tenants or not. It is a matter of if you will price the house as much as you would like to because how you price your house would often depend on some of the factors I listed earlier, such as location. If you built a house in Lekki when it was still a backwater, the value of the house would appreciate now that Lekki is associated with affluence. That is a good investment. But supposing Lekki suddenly becomes a haven for kidnappers and ritualists, you will of course get tenants, but would you be able to put the house down for the same price as before? Of course not. In this case, the value of the house has depreciated due to the factor of location.

sulaak:


I agree, the location of your property matters, but will I rather have a house in a high crime rate area than a car

amzee:
I'll choose A

seyz91:
The car is obviously worth multiples of the house worth

So i would go for the car, sell it straight up, build three other buildings in different places and end up with a small car to drive around with

amzee:

Easier said than done