Would you sell, rent out or live in inherited property?
In Nigeria, it is common practice to inherit property following the death of a parent, loved one or someone close to you. If you ever find yourself with an inherited property, the next question that hits you is “what am I going to do with this property?” Before you make the decision of what you should do, there are certain things you should consider. For instance, is this a property you want to sell off immediately you receive ownership? Don’t make rash decisions. Ask yourself the following questions first.
What kind of ownership do you have?
When you inherit a property, you have to establish if you have sole ownership of if you inherited the house along with others; who could be your siblings or other members of your family. If you have sole ownership, the decisions rest solely on you but we suggest you work with a property lawyer and property lawyer who would guide you with their wealth of experience. They would also help you with all the documentation and paperwork you would need to process.
However, if the house is jointly owned by others, you should consider working with an experienced property agent who would help you draw out clear lines on how much of the property belongs to you as well as how to ensure it is properly valued. In cases of joint ownership, you cannot take unilateral decisions on the home as you have to have meetings with others who inherited the home with you with a view to ensuring all decisions are collectively reached.
Are you ready to pay Land Use Charges?
Charges associated with owning property should be one of the factors that determine whether or not you will keep the inherited property.
As a property owner, the state government expects you to say what is called the Land Use Charge. Land Use Charge is the amount a homeowner (landlord) pays to the government of that state for leasing out that particular land on which the property is built. The income generated from this tax is then used to develop the state. This tax is annually paid to the government.
The Lagos state government takes its Land Use Tax very seriously. Defaulters have their homes locked up by the government and in some cases, property landlords will be persecuted for refusing to pay the Lagos State Land Use Charge tax given to them.
What do you want to do with the house?
This is most likely the next question you will ask yourself upon inheriting a property. Regardless of what your initial thoughts might be, there are three clear options open to you. You could decide to live in it or rent it out or sell it but you have to understand how to sell a house in Nigeria.
One of the most popular options for people who inherit property in Nigeria is to sell it. We acknowledge the fact that selling off a house you have inherited is a very simple way out for you especially if you remain unsure of how to proceed after some time.
Another reason a lot of people opt for selling off the house is that it saves them the accompanying responsibilities that come with renting out a property or owning more than one home. For instance, if you own two homes, you certainly would spend more time in one than the other. Another issue is that of maintenance. Not everyone is comfortable with the idea of owning and maintaining two homes. Renting out the property also comes with additional responsibilities and not everyone is naturally wired to easily take up such responsibilities efficiently.
One more reason why people who inherit houses find it easy to sell off the property is that it rescues them from the emotional trauma of dealing with a house that once belonged to a loved one or friend.
Depending on how sensitive you are or how your mind works, selling the home of a loved one who willed it to you could hurt you for a while as you might be tempted to think that you are letting go of something that emotionally connects you with its previous owner.
Do you want to live in the house?
If you were living in a rented house or apartment before you inherited the property, then it makes perfect sense if you decide to relocate to the new home you just inherited if you are the sole owner.
As you might have already guessed, this automatically means you no longer have to pay rent. As a result of this, you get to save a lot of money. Now that you own your own home, a lot of your attention would be diverted to redesigning your home, moving in and working on ways to make your home better depending on your taste.
Living in a house you inherited also makes you feel connected to the loved one who willed the home to you. However, you should be aware of the accompanying implications. One of those implications is that owning and living in a home that once belonged to a loved one means that you risk being subjected to a level of emotional stress.
Meanwhile, if you have inherited the property jointly with a brother, sister or cousin, then you cannot just move into the home without the approval of the other joint owners as they have as much ownership of the house as you do. So, if you find them/him/her objecting to your living in the house, then you will have to find out what their plans are. Perhaps, the other owners are more interested in selling the house. This means that a general agreement has to be reached in regards to what happens to the house.
Do you want to rent out the house?
If you are not interested in selling the house; probably because property experts have assured you that the value and of the house is sure to rise in the next few years, then you should consider renting it out.
One of the first things you should consider doing if you decide to rent out the property is to find the right tenant. By renting out the house, you become entitled to a steady stream of income and this would prove particularly indispensable to you if you had previously taken a mortgage on the home you lived before you inherited the new one.
Just as we have with other options of what you can do with an inherited property, renting out a home you inherited also has its downsides. For instance, the guilt you might feel for allowing a stranger live in a home or space once owned by someone you loved. Remember that this person might even be your father or mother. As a result, you could find yourself unconsciously looking for a tenant who would really take care of the house and not just treat it like just another property. Most of this would be born from your emotional attachment to the house.
Becoming a landlord is a huge responsibility, so, you’ll want to make sure that you know precisely what it entails to be a homeowner.
Final thoughts
The final decision on what to do with inherited property ultimately lies with you. It might be advisable to take some time to think before making any decisions to ensure that you are not emotionally overwhelmed.
There are pros and cons to whichever decision you arrive at but we believe now, you are in a better position to decide what it nice for you. If you inherited a house in Nigeria today, what would you do – sell it, live in it or rent it out?
