Topic: Thrift&installment purchase,key way that make most Nigerians acquire a property (Read 159 times)

i personally believe in thrift (save up, then purchase) and i avoid instalments (loans stretching over time always having debt demands)

however
thrift only works with patience, a strict mindset to stay frugal, and timing. to be able to buy at the right price at the right time. to get the most benefit with least cost/savings length of time to afford said item later on

i do understand the instalment plan, meaning as long as the instalments are within the affordable range you can get your goods early and pay slowly after thus its  buy now pay over 7 months instead of save for 7 months buy later.
but with debt and interests.. if a Man C situation occurs during the payment plan. it can lead to harsher results.. and alot more expense trouble

where as man C issues with 'thrift' no harm is done and man C just has to keep trying for a few more months unharmed.

in short debt/instalments are for the impatient. where they risk trouble later if things do not go right

thrift/frugal work better if you have patience where no harm or harsh results or trouble later.
but you need to be saving upfront for things you do not even realise you need yet. so when the opportunity comes up or an event of purchase need arises. you can take that opportunity without worry of future harm

That's what this thread is about?  Dude, IMO you wasted a lot of time creating those three scenarios, and I'm not even sure what the real takeaway message is.  I'm thinking you're fishing for merits.

By the way, how much is #100,000 in USD?  I assume that amount is in Nigeria's currency.

And also, I'm curious as to how much property costs there.  Can you buy a decent plot of land and build a house cheaper than you can in the US? 

If you are in a country where inflation is a bit high, working hard is not an idea that will bring you material benefit in the short and long term:

• New job: additional source of income is good but this increase will be devoured by inflation in one way or another.
• House prices and rents will start to rise, and then you will pay extra.

Therefore, the solution is to work smartly, and this can be done in:

• Investing in gold and silver or any investment that generates income for you.
• Installment attempt: It is true that you will pay a lot, but the installment with a fixed amount and with inflation will make you own the asset at a lower value.

This is interesting. Which country are you living dude? This Government policy will make shelter easy for the citizen. Food, clothing and shelter are the three key things needed for human living. If shelter is being subsidized by the Government, life in such country should be easy.

Man A is an option that many people around me do. Plantation lands in small towns have started to build housing more rapidly and have been inhabited since the last 7 years, especially by newly married couples.

Fortunately, in my country, the government is involved in the property business in the form of housing subsidies to provide opportunities for people especially the lower middle class to get more affordable housing (adjusting their average income and spending for their daily needs) without compromising the quality standards of normal housing prices.

In my country, it has become normal to buy real estate and other things on credit. A loan can be very profitable if you have a stable income; many citizens already live in normal apartments and enjoy all the benefits of purchasing equipment or a car in installments.
Another danger is an unexpected stop of the resource from which money is drawn to pay the loan, and then a rainy day may come for those who are already insolvent. In fact, living on credit is a rather risky venture; sleeping with the constant awareness that you owe someone has a very bad effect on your mental state. Keeping money without their work, on the other hand, is pointless. Inflation is rising and money is depreciating. The best way out of the situation would be to work in several places to generate additional income, and also have a partner with whom you can share loan payments.

I support thrift and payment by installment. Because if you live in a low income resource country like Nigeria where there is a huge gap between the cost of living and monthly and annual income it is very convenient and stress-free to go the way of Man A and Man B. I have a lot of friends who are married and this is what they do. Every month, they set aside some money to for this. Some have even been able to buy landed properties with these options.

Everything in life is possible if there are opportunities and good planning. Buying a house through instalment payments comes with sometimes high interest rate because these credit firms would always make handsome profit from their investment.
For me if one has a good saving mentality or culture, planning to outrightly buy a house after saving for few years might be cheaper and more convenient. At least you would be able to control your payment plans and be free from the pressure of servicing your loan obligation.
I am not also comfortable with instalment payments because one can lose his job or source of income which would lead to loan payment defaults.

Nevertheless, paying in installments offers a great opportunity for more people to afford to own their own houses. And many people in my locality are really taking advantage of this great opportunity because most people are struggling to survive therefore are not able to save to buy a house outrightly.

I'll tell you about the real estate market in Ukraine. I bought a new apartment like this a few years ago.
After the bubble and crisis in the real estate market, when prices rose at a wild rate, and reached some indecent figures, the market "deflated".
After that, a problem arose - on the one hand, the market is still attractive, but only from the point of view of people's desire to buy ... But there were nbans - a fall in real estate prices, many unfinished and unsold objects ... The market adapted for a couple of years.
What happened in the end. Many developers have offered - installments for the purchase of real estate. Conditions:
- 20-30% down payment of the value of the purchased object
- Further 3-5 years of installments, with a rate of 1-2% per year, and payments of the remaining part of the cost according to the schedule.

I deposited 35% and paid out a fixed amount quarterly.
Very comfortable conditions! At the same time, developers are guaranteed to receive quarterly payments from the buyer, buyers have the opportunity to plan ACCEPTABLE costs for the purchase of property, all in a winning position.

Working hard is a great thing for society in general. Hardly working is a disaster! try to read the case study of Venezuela to know why their economy failed. Ample case studies are available on the internet. Freebies are one of the major reasons for their failing economy, alongside other things. So if some obligations make the men work hard, that's a good thing! Obviously, everyone needs to push their best to achieve great things in life

Inflation was always there and it will be always here! There's no way to escape it! Debts are very important for the economy because that's how new money is created! Buying something using installments, is not always a bad thing. What is bad is the rising price of food grains and energy! That's something government needs to control on priority.

As inflation keep increasing in the world, Nigeria is not left out from this inflation. This has made buying things and owning a property difficult for an average Nigerians. Most struggle to buy things above #100,000. Thrift and installment purchase as been the key to acquire this materials in most cases.  This can be seen in the case of 3 hardworking friends doing the same work and planning to buy the same generator of about #140,000 within 8 months.

Man A: He decide to buy on installment payment. He was successful with his purchase by making his first payment and the remaining was paid compulsorily for 6 consecutive months.

Man B: He was able to get his own by cash payment through the money he saved through thrift for 7 months.

Man C: He end up not able to purchase his own. He believes he could save the money gradually in his bank till it reach the amount for him to make the purchase. But he keep saving it and spending it as the need arise.

OBSERVATION: With thrift and installmental purchase, one has no choice than to work hard for contribution and compulsory payment. This will definitely push anyone involved to work hard for his payment. Man A and B engaged in what can push them in order to actualize their dream. Even though man C was hardworking, he couldn't actualize his dream because he lack self-discipline and he has nothing to push him to run towards his dream.

CONCLUSION: Good thing doesn't come easy. Most time we need something to push us for us to achieve a greater height.