NairalandAngel:


This does not apply here in Nigeria

Sorry, it actually does.

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

That guy knows what he is saying.

ba7man:
Very true.

My developer friend has properties for sale around lagos worth 100's of millions but stays in a rented duplex.

Another friend has his own home in his village and terrace duplex for sale in Lagos but still stays in a rented apartment.

They both say when they eventually build their own homes to live, if a buyer shows up with a great offer, they'll sell it off.

dont u no that those ur friends are mad?

How many Nigerians has #40m to tie down building in ppties,in Nigeria there is little or nothing like ppties investment companies where multitude can collectively investment to build houses & share rents as profit.in Nigerian Everyman for himself.we dnt do morgage in nigeria,who taught him in Oxford that someone oweing a living space is thinking of investment?

All his Oxford education was a waste!

pacehood:
Read and understand before you talk. The gentle man was trying to tell us that don't take mortgages you cannot afford, it becomes a liability. Often times people take mortgage loans and can't afford to go continue paying. Most of our so called celebraties that claim to me home owners took long term home mortgages some of them can barely afford. The market is plagued with uncertainty. If you're not paying cash for your fancy duplex in lekki its better you rent and put your down payment in an investment.

The man thinks he is in London,do we have morgage in Nigeria?

Expert your analysis is not deep,infarct, it is one-sided

In addition with annual rent..........
What of capital appreciation on Land and House?
What of buck recovery of capital invested if you disposed your house?
What of the comfort of owing a house?

Viking07:
His opinion has since been brilliantly countered and sent to the dustbin.

https://mobile.twitter.com/AyoBankole/status/1194587749560532993

this is trash rejoinder... the people in question did not invest the money they would have used to buy a house in a safe vehicle, tgat yeilded more than enough to pay their rent... tbe premise of tbe initial arguments is for those that can afford to buy a house not those that would not see 40million in their lifetime. A better argument would be the capital appreciation of your home over that of treasury bill or other very safe investments negates tge benefit of making yearly income and paying rent

aybabz101:
maybe he meant home ownership in Lagos Island is a bad investment......coz all I can reference his assertion to are only the upper class and the upper middle class Nigerians.

This is the worst advise for the average Nigerian since most of the population is struggling to meet ends needs. Now imagine paying school fees, rent, transportation, bills every month on a salary of let's say 70k, it's going to be hectic. But with this salary in a small town in 9ja and with a good cooperative society ( who gives out non interest loans) I can get one plot of land at d outskirt of a major town and develop.

Moreover, House ownership is more of a cultural ritual in 9ja. Families struggle very hard to build houses so that they can be associated with it and it is a thing of pride to them (ie, they are in there homes, no landlord or landlady can come and harass them anyhow). It gives families a sense of ownership and security.

Even in foreign countries, house ownership is a thing that most of them want to achieve and they throw big parties involving families and friends when this is achieved.

I totally disagree with Dr. Tayo. Even with the rate of inflation around d world, properties and lands are d only assets apart from gold dat I know of that there values are in most cases always increasing. This means that the prices of house rent will always increase and not the d other way round (if the quality of the home is maintained or improved upon?)

Owning a house would cost u nothing less than 10 million no matter how small the house is

Using that ten million to start a business or tressure bill would get u enough money to get a better house than the one u built. ....what ever made u not to be able to pay rent would make u sale your house if u have one

In UK maybe but not in a cash based economy like Nigeria. Mortgage rates (13-22%) here are ridiculously unsustainable. Again rate of capital appreciation here is high, a property can easily double or triple its value in 10years. This is not the case in the UK or any other developed clime. If you base your property investment on the Rate of Return using rent alone he will be more than right but capital appreciation trumps that in Nigeria.

vikstandon:



Proverbs count it as a wise act .

Proverbs 24:27- Develop ur business before building a house.

Proverbs 24
[27][Put first things first.] Prepare your work outside and get it ready for yourself in the field; and afterward build your house and establish a home.

Golden rule before settling down.

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

What he said is true, but not every Nigerian can understand it.

etukiniini:
It is good that we understand someone first before commenting. He is making sense. In a year, he will have a nice rented apartment at 1.5m and have 3m as profit, and still have back his 40m. 3m ×10yrs = 30m profit. U decided to acquire a liability, pls who is wiser? Rem he did not say u should not own a house or property take note. Pls we r all children of God, we should learn not to abuse someone it was opinion not a fight, let's try to love our self's. Love u all

its even more than 30m profit in 10 years because the second year you are to invest 43m instead of 40m and so on it continues like that.

Viking07:
His opinion has since been brilliantly countered and sent to the dustbin.

https://mobile.twitter.com/AyoBankole/status/1194587749560532993

If all you do is earn salary, pay rent and school fees, spend the rest and wait for the next pay slip then his advice is not for you. He even showed how someone investing in treasury bills can pay rent and keep some change. If a landlord does not want me in his house I move to another one, period! So long as I have money to pay my rent.

aybabz101:
maybe he meant home ownership in Lagos Island is a bad investment......coz all I can reference his assertion to are only the upper class and the upper middle class Nigerians.

This is the worst advise for the average Nigerian since most of the population is struggling to meet ends needs. Now imagine paying school fees, rent, transportation, bills every month on a salary of let's say 70k, it's going to be hectic. But with this salary in a small town in 9ja and with a good cooperative society ( who gives out non interest loans) I can get one plot of land at d outskirt of a major town and develop.

Moreover, House ownership is more of a cultural ritual in 9ja. Families struggle very hard to build houses so that they can be associated with it and it is a thing of pride to them (ie, they are in there homes, no landlord or landlady can come and harass them anyhow). It gives families a sense of ownership and security.

Even in foreign countries, house ownership is a thing that most of them want to achieve and they throw big parties involving families and friends when this is achieved.

I totally disagree with Dr. Tayo. Even with the rate of inflation around d world, properties and lands are d only assets apart from gold dat I know of that there values are in most cases always increasing. This means that the prices of house rent will always increase and not the d other way round (if the quality of the home is maintained or improved upon?)

You guys didn't completely get Dr. Tayo. He said there are conditions under which house ownership is not a wasted investment and one of them is if the mortgage is less than 8%. If there is an organisation that can give you loan at 0% interest, then it is good for you.

dake40:


Read the post again. And this time, be more careful...


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,

At a grown age, you know the time has come to have your property (though still optional), and during this time, you would have have enough to buy a home (with latest design)

The issue with Africans is LANDLORD mentality which is very wrong... For young hustlers, dont build/buy a house you know you wont live in for years when you can rent 1 and reinvest the remaining funds in good investments..

Comprehension seems to be a rare skill on nairaland. This man gave the bolded conditions but nairalanders failed to see it. Na wa o!

Yoighaman:


He just gave an example of Lagos and you say it does not apply in Nigeria. Is Lagos in France or Germany?

I swear I kept on wondering the same thing.... why are they mentioning western countries when he clearly said LAGOS.... the wise are few indeed.

Who is this?

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

He is capitalising on the owner's bad investment.

helinues:


Why not summarise the epistles Mr readers

Read.

I am not summarizing jack.

U can live Ur life the way u want.


Byee

Nigerians will always argue against this and it is a reason for increasing poverty among them.

You will see someone take a loan from a cooperative to go and build one decrepit house in ikorodu just to be called a landlord. The fellow would now be traveling daily to VI for work at a great inconvenience. People have tied so much of their wealth in real estate when they could have used the money to invest while leaving in a much more comfortable area at a rent that would be less than 5 percent of the value of the house.

People need to understand that utility is more important than ownership.

The OP clearly stated that you may chose to own a house due to societal concerns. However, in terms of economics, it's a bad investment.

NairalandAngel:


This does not apply here in Nigeria

cue64:
In a saner clime this guy is right to an extent

He is not far from the truth. The only caveat is that location matters. The yield on a build in Amuwo Odofin is higher than Banana Island and the yield on high end university hostel is higher than almost any other type of property. It is a function of build cost/ rental value.

Property is in our blood and no one should take it out. But caution should be the watch word.

I work as Trustee for some old families; some with 20 plus houses and I can tell you that unless actively and dispassionately managed, the third generation sells at pretty low prices. In many cases and over 20 years or so, supporting infrastructure decays or the most of excellence shrinks as slums grow outwards, more modern developments come on stream - your guess is a good as mine.

So yes a person building slowly without debt will save money on prior rental and if it is a duplex may make some money in the bargain. Mind you there is an annual amortised cost so rent must exceed amortised cost. A property built for 100mn at rental of 4m takes 25 years to break even assuming an inflation rate of 0%

There is always the leverage value of a home but what investment can pay back those type of loans?

Active and dispassionate management is key but how many people go on to sell the houses they have lived in? And even if they do attempt to sell they can be hit by the "endowment" effect and place a high premium on the property.

I know that there are many people making money from property on NL and and I am not raining on your parade, I am only looking on as a Trustee with a minimum of a 25 year investment horizon.

TO SLAP THIS MUMU HEAD DEY HUNGRY ME

HAN HAN

AntiWailer:


Read.

I am not summarizing jack.

I can live Ur life the way u want.


Byee

Then stop doing cho cho if you dont have any counter arguments

Your thoughts are great, but it's like it's only Lagos your research ended. Don't be too carried away, your own is your own. Renting too has more issues than owning an apartment. In Nigeria, if you got a house. You've saved lots of issues. This is Nigeria.

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

You hav no knowledge of finance
so I will forgive your ignorance




A renter with good cash flow is FAR BETTER than a homeowner with a redundant cash flow (wherw many nigger Nigerians fall btw)

Cash flow is king.
.Using most of your cash and income to build you a house that will generate zero income to you is STUPID!


Some people build six unit apartments
live in one and rent the other 5

that is smart

but doing the other is STUPID

einsteine:
Nigerians will always argue against this and it is a reason for increasing poverty among them.

You will see someone take a loan from a cooperative to go and build one decrepit house in ikorodu just to be called a landlord. The fellow would now be traveling daily to VI for work at a great inconvenience. People have tied so much of their wealth in real estate when they could have used the money to invest while leaving in a much more comfortable area at a rent that would be less than 5 percent of the value of the house.

People need to understand that utility is more important than ownership.

They lack exposure
that is just the problem

dake40:


Read the post again. And this time, be more careful...


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,

At a grown age, you know the time has come to have your property (though still optional), and during this time, you would have have enough to buy a home (with latest design)

The issue with Africans is LANDLORD mentality which is very wrong... For young hustlers, dont build/buy a house you know you wont live in for years when you can rent 1 and reinvest the remaining funds in good investments..

thank you very much

there are still sensible people on NL

Nigger Africans will not open their mind to learn
that is why poverty will not depart their midst
.that cultural attachment to property is just

dake40:

African mentality

which leads them to poverty

Only business men will understand this man, if you are a civil servant pls wetin concern you with #40m talk?,
Goto ikoyi , central area in abuja and see locked duplexes, if not that the owners are politicians that will go back to our treasury and steal more money,
Locking of 150m house for 5years without living in it or renting it out is what?
Which private businessman will do that?
Go and tell Shina peller or Akin Alabi to buy house in abuja because of their 4years tenure election they won.

Shina peller instead of buying a house in abuja, Bros is building new quilox club in abuja, sense will not kill this Bros.

drlaykay:
I tell people this a lot and they actually think I'm saying nonsense.
Build your house after you have solidified your business.
This is why an uneducated yoruba man doesn't do well as much as an uneducated igbo man.
Most people get to see little money from their business and rush to get a land. The business isn't solid enough yet but instead of reinvesting the profit in order to improve the business they go buy a lands.
Every little profit from the business which is still of a low scale, will be used in financing the building. Because the profit is low, they end up spending part of their capital in addition to the profit in order to fast track the building which is overdue.this act make the business die and they become poor landlords
On the other hand, their igbo counterpart who are also into small scale business, reinvest such funds into the business.
The business grows and they build a more powerful structure in a decent location within a short time.


Before your crucify me, I have live examples and I am proudly yoruba

thank you o