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Ups and Downs of Buying an Apartment in Addis Ababa

owning a home is the fulfillment of the Ethiopian dream. For others, it is their worst nightmare. Purchasing a home is one of the biggest financial decisions you will make in your life. So, before you decide to buy, carefully consider the ups and downs of homeownership.

Before buying a home, it’s important to consider how such a purchase will affect your finances and your lifestyle. It makes sense to review all of the advantages and disadvantages of becoming a homeowner before making this big commitment.

What Are The Advantages Of Owning An Apartment?

“Ups and Downs of buying an apartment in Addis Ababa” 

  • Greater privacy, Nearby Shopmalls, Hospitals, Schools, Workplaces, Cultural Restaurants.
  • Homes typically increase in value, build equity and provide a nest egg for the future.
  • Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage.
  • The interest and property tax portion of your mortgage payment is a tax deduction.
  • There’s pride in homeownership, which also closely ties you to your community.
  • Affordable options exist, like purchasing a lower cost manufactured home.

What Are The Disadvantages of Owning an apartment?

“Ups and Downs of buying an apartment in Addis Ababa” 

  • Homeownership is a long-term financial commitment.
  • Owning a home tie you to your community, making it more difficult to suddenly pick up and leave a location.
  • Buying a home requires a down payment, closing costs, and moving expenses.
  • The value of your house may not increase – especially during the first few years.

Here are the factors to consider when comparing buying to renting a home

“Ups and Downs of buying an apartment in Addis Ababa” 

  • Homeownership is not for everyone.
  • Homeownership requires you to have a stable or growing income.
  • The financial benefits of homeownership are long term. You should have a budget and a savings plan in place before buying a home. Owning a home is a big responsibility.
  • Your credit score will impact how much you can borrow and at what terms. If you have substantial credit card debt, you may want to seek the help of a credit counseling agency and debt management program and pay your debt down, before applying for a mortgage.

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