shehuolayinka:
A Nigerian United Kingdom based Oxford-educated entrepreneur with business interests in technology and advertising,
Dr. Tayo Oyedeji says home ownership is mostly a bad investment.

He said this in a series of tweets on his official and verified twitter handle, stating that home purchase for living is a bad investment.

Renting is wiser for most people. Don’t buy a house unless: 1. Mortgage is < 8%, 2. You can pay cash, 3. You plan to live in it for 10 years, 4. You need the psychological comfort of home ownership.

Rental/investment property is great. Home ownership is mostly a bad investment.

I’ll share the math on home ownership sometime next week. The home you live in is your worst investment. For some of us, it’s not even an investment. Don’t buy the hype, do the math. Home purchase for living is a bad investment.

Rental property is a great investment. Do the math. An average property in Lagos is N40m. Treasury bill rate is about 12%. Your N40m will yield N4.8m a year.

You can rent a good home for N1.5m and still have N3.3m left over. Your house is costing you N3.3m per year. Do the math.

Psychological comfort, societal expectations, and cultural norms are valid reasons for home ownership.

But when it comes down to the math: it just doesn’t work. I own a couple of homes for the reasons stated above. They’re not good investment.

READ MORE: https://thebelltimesng.com/2019/11/14/home-ownership-is-mostly-a-bad-investment-says-expert/

Ayò Bánkólé

·My father died when I was 16, my mother was newly retired, had invested her terminal benefits in Dad's business (amongst other stories which made everything die with him). Less than 3months, we were thrown out of the house by the
Landlord, even though we could afford it. Thread.

I read Robert Kiyosaki's book as a young boy, even before my experience, I knew, that his views were too narrowed on western realities than African realities. As I thought then, so I still think now. As he wrote then, so do people like Dr Tayo Oyedeji still write now. Wake up!

Some principles in advanced societies cant be applied here. You can lose your job overnight because your Boss woke up on the bad side, or lost money to 419. no social safety nets, healthcare, etc. If Devil wants to finally get you, no house. You'll be in the rain with your family.


We left our rented house in Isolo, moved to Meiran. Then I was always in a Jakande estate with my friends. A few of my friends' parents lost their jobs to the bank failures then. Those who owned their flats were safe, tenants had their properties in the sun & rain in no time.

The Estate was awash with random sights of families whose properties will suddenly be thrown out. Evicted due to inability to pay, based on job loses they didn't foresee, in a country that has no safety net, or security, or human right, or healthcare, or education,or job options.

Nigeria is not yet there. Many are one sickness, one failed company, one govt policy (e.g. FX devaluation), away from poverty. If you own a house, you can drink garri everyday, your kids will have a place to sleep, while you go hustle. If you die or need capital, it is an asset.

There is poverty in our land. Wicked, ravishing, rampaging poverty. One way (not the only) to secure yourself & those you love is to own a roof. Don't listen to elites who have attained comfort, live abroad, read fancy books, & are selective in applying it to our realities.

PS: Investment is not everytime about treasury bills, interest rates, arithmetic & english. At times, investment is simply keying into a position, because you know where you are coming from, where you are going, and want to secure yourself from the volatilities of your clime.

Only less than 0.5% of Nigerians will ever be able to see 40m Naira in their lifetime. T.Bills & most securities won't make sense if you don't have the volumes. But you can always invest your little sums in some securities,yet invest other portions in building a home(safety net).

charliboy654:
This guy na mumu o, so the house you rent, is it some someone else house.

Adufetooposh:
Instead of being a tenant, i will rather be a landlord.

Starzdavid247:
When u grew old, then u will know the importance of owning a home. Oga keep your economics analysis to yourself.