Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

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.

Any Questions For Us?

More To Explore

Real Estate

Best Investment Opportunities

Best Investment Opportunities In Addis Ababa, Ethiopia The times are changing in the Horn of Africa and the larger East Africa region. Ethiopia – once the byword […]

Read More

Metropolitan Real Estate PLC © All rights reserved