Alot of u do not understand his analysis....you see y you fail simple exams?

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

NairalandAngel:


So what if he used Lagos as an example?

If you had an opportunity to own your own house in say Maryland or Yaba for instance, would you prefer to forgo the opportunity and rent instead because of some mumbo jumbo economic theory?

You need to take time to read and understand what he is saying, you clearly don't.

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

me self tire 4 am Oo.. abi in dey try talk say if u get house , na to park go stay 4 hotel wit ur family den rent d whole building so u go dey receive major rent, na im i no still undastnd.

abeg person wey undastnd d man beta mk in help us expantiate.

alpontif:
I have been saying this exact concept for years to Famil/friends, but I have realized over time that they take such information wrongly, apart from thinking you are stupid, they will think some spiritual forces are preventing you from owning your own house, they never understand..and those of them that have already owned houses think you are insulting them.

It is also the reason a lot of people live average lives and never become wealthy. They might be rich, but they can't afford to stop working, hence they never become wealthy.

The house you live in is not an asset, since you will not sell it under normal circumstances, we call it dead capital. It is not producing any income for you, nor can you benefit from selling it if land values should increase, because, remember, it is your house....so you can't sell it.

What people who become wealthy (and this is why I greatly love and admire Igbo men, though I am Yoruba) do is that they save up money to establish Cashflow businesses, they will then keep on managing and saving up to establish more cashflow businesses .

These cashflow businesses will be generating income, which is saved up and then invested in passive investments like TB, Bonds, plots of cheap land all over the place, student hostels, lockup shops etc.

The income from investments initially is not as much as cashflow businesses, but it is passive and do not require active management, so as the money is coming from their cashflow businesses, they are putting it in passive investments, gradually, until it comes to a point when the yield from their passive investments can cover their yearly living costs.

At that point, they will now start putting money in non assets like their own house, and may even decide to retire, without ever working in their life again.

To illustrate this point, let us assume you do a business and just hit twenty million, or you saved up twenty million naira.

The first instinct of a typical Nigerian is to show he has arrived by buying cars and building a house, the instinct of someone who wants to be wealthy is to establish a cashflow business.

Let us assume you want to be wealthy, so what did you do?

You imported a haulage truck for five million naira, opened a paga shop with three hundred thousand, established a block industry with one million, opened a shop in a market to start selling provisions with one million, opened a small buka with five hundred thousand...everything at a total cost of seven point eight million. You now bought dollars worth eleven million, then used half of it to buy Tbills, and fixed the remaining in your dorm account. You want to be running your life with the one point two million that remains.

You have just established a cashflow business.

Your haulage truck will produce money every week, you set aside a sum to recover the cost of the truck and send the profit to a special account every week......say fifty thousand weekly

Your paga shop will produce money every day, you set aside part of it to recover the cost of establishing the business and send the profit to a separate account daily......say two thousand daily...fourteen thousand per week

Your block industry will produce money every week..........same process........say fifty thousand weekly

Your provisions shop will produce money every day......same process........say ten thousand daily.....sixty thousand per week

Your small buka will produce money every day.........same process......say ten thousand daily....sixty thousand per week

Your tbills is producing money...keep it there

Your dollars is protecting you against inflation .....keep it there

Money is entering from all directions, that is cashflow.....in other words, you have a very high liquidity.....this means that you can have access to reasonable amounts 0f money at any time for you to take advantage of opportunities.

So, as these businesses continue to grow, you keep expanding them, and opening more branches, piecemeal, gradually.

Assume you open this businesses forty weeks in a year of fifty two weeks,

Per week, you are making two hundred and thirty four thousand naira

Forty weeks total Nine Million, three hundred and sixty thousand naira.

And that is after you have removed the seven point weight million you used to establish the businesses, you will still have nine point three ,million as profit.

On just single branches.

The more you expand, the more money you make, the more liquid you become, to the point that if any opportunity comes up that requires cash, you won't be running up and down looking for money.

When it gets to a point, start using the profits you are getting from your cashflow businesses to buy cheap land in Hectares and acres, dont go to where land is presently in demand, buy land anywhere, everywhere, as long as it is secure and very very very cheap. Only suckers buy expensive land.

Buy more bonds , dollars, tbills, at any point in time make sure most of your liquid cash in the bank is in dollars.

Continue this over a period of ten years, if you dont become a hundreds millionaire, call me barstaad.

At that point, you can now build your own house, and even retire.

Please note that this advice is for people who want to be wealthy, not those who want to be rich. It is strictly for business minded people not people comfortable with earning excellent salaries.

A house is not an investment, if you fear you will die before your time and want to secure your family, and that is why you want to build your own house, there are insurance and investment banking products for that.

Think with your brain not your feelings. If you use that twenty million and build a house, other than waking up and seeing your house every morning, it will not give you a single profit, you have just buried money.....like the guy in Jesus's parable.

For people who are working and are not business men, if you save up and get this kind of money, buy dollars and keep, buy tbills, fix part of it with a cooperative bank, fix part with an investment bank like Meristem, FBN capital, Investment one. etc.....

Dont bury money....

With this kind of mentality, you can never be poor in life!

God bless you sir.

alpontif:
I have been saying this exact concept for years to Famil/friends, but I have realized over time that they take such information wrongly, apart from thinking you are stupid, they will think some spiritual forces are preventing you from owning your own house, they never understand..and those of them that have already owned houses think you are insulting them.

It is also the reason a lot of people live average lives and never become wealthy. They might be rich, but they can't afford to stop working, hence they never become wealthy.

The house you live in is not an asset, since you will not sell it under normal circumstances, we call it dead capital. It is not producing any income for you, nor can you benefit from selling it if land values should increase, because, remember, it is your house....so you can't sell it.

What people who become wealthy (and this is why I greatly love and admire Igbo men, though I am Yoruba) do is that they save up money to establish Cashflow businesses, they will then keep on managing and saving up to establish more cashflow businesses .

These cashflow businesses will be generating income, which is saved up and then invested in passive investments like TB, Bonds, plots of cheap land all over the place, student hostels, lockup shops etc.

The income from investments initially is not as much as cashflow businesses, but it is passive and do not require active management, so as the money is coming from their cashflow businesses, they are putting it in passive investments, gradually, until it comes to a point when the yield from their passive investments can cover their yearly living costs.

At that point, they will now start putting money in non assets like their own house, and may even decide to retire, without ever working in their life again.

To illustrate this point, let us assume you do a business and just hit twenty million, or you saved up twenty million naira.

The first instinct of a typical Nigerian is to show he has arrived by buying cars and building a house, the instinct of someone who wants to be wealthy is to establish a cashflow business.

Let us assume you want to be wealthy, so what did you do?

You imported a haulage truck for five million naira, opened a paga shop with three hundred thousand, established a block industry with one million, opened a shop in a market to start selling provisions with one million, opened a small buka with five hundred thousand...everything at a total cost of seven point eight million. You now bought dollars worth eleven million, then used half of it to buy Tbills, and fixed the remaining in your dorm account. You want to be running your life with the one point two million that remains.

You have just established a cashflow business.

Your haulage truck will produce money every week, you set aside a sum to recover the cost of the truck and send the profit to a special account every week......say fifty thousand weekly

Your paga shop will produce money every day, you set aside part of it to recover the cost of establishing the business and send the profit to a separate account daily......say two thousand daily...fourteen thousand per week

Your block industry will produce money every week..........same process........say fifty thousand weekly

Your provisions shop will produce money every day......same process........say ten thousand daily.....sixty thousand per week

Your small buka will produce money every day.........same process......say ten thousand daily....sixty thousand per week

Your tbills is producing money...keep it there

Your dollars is protecting you against inflation .....keep it there

Money is entering from all directions, that is cashflow.....in other words, you have a very high liquidity.....this means that you can have access to reasonable amounts 0f money at any time for you to take advantage of opportunities.

So, as these businesses continue to grow, you keep expanding them, and opening more branches, piecemeal, gradually.

Assume you open this businesses forty weeks in a year of fifty two weeks,

Per week, you are making two hundred and thirty four thousand naira

Forty weeks total Nine Million, three hundred and sixty thousand naira.

And that is after you have removed the seven point weight million you used to establish the businesses, you will still have nine point three ,million as profit.

On just single branches.

The more you expand, the more money you make, the more liquid you become, to the point that if any opportunity comes up that requires cash, you won't be running up and down looking for money.

When it gets to a point, start using the profits you are getting from your cashflow businesses to buy cheap land in Hectares and acres, dont go to where land is presently in demand, buy land anywhere, everywhere, as long as it is secure and very very very cheap. Only suckers buy expensive land.

Buy more bonds , dollars, tbills, at any point in time make sure most of your liquid cash in the bank is in dollars.

Continue this over a period of ten years, if you dont become a hundreds millionaire, call me barstaad.

At that point, you can now build your own house, and even retire.

Please note that this advice is for people who want to be wealthy, not those who want to be rich. It is strictly for business minded people not people comfortable with earning excellent salaries.

A house is not an investment, if you fear you will die before your time and want to secure your family, and that is why you want to build your own house, there are insurance and investment banking products for that.

Think with your brain not your feelings. If you use that twenty million and build a house, other than waking up and seeing your house every morning, it will not give you a single profit, you have just buried money.....like the guy in Jesus's parable.

For people who are working and are not business men, if you save up and get this kind of money, buy dollars and keep, buy tbills, fix part of it with a cooperative bank, fix part with an investment bank like Meristem, FBN capital, Investment one. etc.....

Dont bury money....

so if u stay at govt lodge and build three house for rentage now d capital are buried der?

I totally agree with the economist to a degree, however if you're blessed enough to build multiple rental properties, I would not advise that you rent them(all) out, and at the same time remain a tenant. A man like E-money who is only 38 years with stupendous wealth and political connections to accumulate more wealth, would you encourage him to sell or rent out his 250 million mansion and start renting from someone else? My point is, there's level to everything; his analysis is sound but does not apply to everyone. No matter how sound your idea is, please add 'Conditions Apply' to it. #my2cents

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Oga o. An Oxford-trained entrepreneur just dropped a vague statement like that. He was not even considering inflation, tax rate, and other indices. Nigeria has been averaging an 11% inflation rate annually for the past 5 years. If we continue with our dumb leaders and things don't change, your treasury Bill capital on simple interest will worth zero Naira after 9years. Remember, the property is hedging inflation. As inflation is going up, your property value is also going up. Also, you have to pay taxes on your Treasury Bill profit. It is presently 10%, who told you that another Govt cannot come in the future and change it to 20/30%. Property can crash too but we don't have a structured market yet that will crash house prices when they are overbought.

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.

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

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alpontif:
I have been saying this exact concept for years to Famil/friends, but I have realized over time that they take such information wrongly, apart from thinking you are stupid, they will think some spiritual forces are preventing you from owning your own house, they never understand..and those of them that have already owned houses think you are insulting them.

It is also the reason a lot of people live average lives and never become wealthy. They might be rich, but they can't afford to stop working, hence they never become wealthy.

The house you live in is not an asset, since you will not sell it under normal circumstances, we call it dead capital. It is not producing any income for you, nor can you benefit from selling it if land values should increase, because, remember, it is your house....so you can't sell it.

What people who become wealthy (and this is why I greatly love and admire Igbo men, though I am Yoruba) do is that they save up money to establish Cashflow businesses, they will then keep on managing and saving up to establish more cashflow businesses .

These cashflow businesses will be generating income, which is saved up and then invested in passive investments like TB, Bonds, plots of cheap land all over the place, student hostels, lockup shops etc.

The income from investments initially is not as much as cashflow businesses, but it is passive and do not require active management, so as the money is coming from their cashflow businesses, they are putting it in passive investments, gradually, until it comes to a point when the yield from their passive investments can cover their yearly living costs.

At that point, they will now start putting money in non assets like their own house, and may even decide to retire, without ever working in their life again.

To illustrate this point, let us assume you do a business and just hit twenty million, or you saved up twenty million naira.

The first instinct of a typical Nigerian is to show he has arrived by buying cars and building a house, the instinct of someone who wants to be wealthy is to establish a cashflow business.

Let us assume you want to be wealthy, so what did you do?

You imported a haulage truck for five million naira, opened a paga shop with three hundred thousand, established a block industry with one million, opened a shop in a market to start selling provisions with one million, opened a small buka with five hundred thousand...everything at a total cost of seven point eight million. You now bought dollars worth eleven million, then used half of it to buy Tbills, and fixed the remaining in your dorm account. You want to be running your life with the one point two million that remains.

You have just established a cashflow business.

Your haulage truck will produce money every week, you set aside a sum to recover the cost of the truck and send the profit to a special account every week......say fifty thousand weekly

Your paga shop will produce money every day, you set aside part of it to recover the cost of establishing the business and send the profit to a separate account daily......say two thousand daily...fourteen thousand per week

Your block industry will produce money every week..........same process........say fifty thousand weekly

Your provisions shop will produce money every day......same process........say ten thousand daily.....sixty thousand per week

Your small buka will produce money every day.........same process......say ten thousand daily....sixty thousand per week

Your tbills is producing money...keep it there

Your dollars is protecting you against inflation .....keep it there

Money is entering from all directions, that is cashflow.....in other words, you have a very high liquidity.....this means that you can have access to reasonable amounts 0f money at any time for you to take advantage of opportunities.

So, as these businesses continue to grow, you keep expanding them, and opening more branches, piecemeal, gradually.

Assume you open this businesses forty weeks in a year of fifty two weeks,

Per week, you are making two hundred and thirty four thousand naira

Forty weeks total Nine Million, three hundred and sixty thousand naira.

And that is after you have removed the seven point weight million you used to establish the businesses, you will still have nine point three ,million as profit.

On just single branches.

The more you expand, the more money you make, the more liquid you become, to the point that if any opportunity comes up that requires cash, you won't be running up and down looking for money.

When it gets to a point, start using the profits you are getting from your cashflow businesses to buy cheap land in Hectares and acres, dont go to where land is presently in demand, buy land anywhere, everywhere, as long as it is secure and very very very cheap. Only suckers buy expensive land.

Buy more bonds , dollars, tbills, at any point in time make sure most of your liquid cash in the bank is in dollars.

Continue this over a period of ten years, if you dont become a hundreds millionaire, call me barstaad.

At that point, you can now build your own house, and even retire.

Please note that this advice is for people who want to be wealthy, not those who want to be rich. It is strictly for business minded people not people comfortable with earning excellent salaries.

A house is not an investment, if you fear you will die before your time and want to secure your family, and that is why you want to build your own house, there are insurance and investment banking products for that.

Think with your brain not your feelings. If you use that twenty million and build a house, other than waking up and seeing your house every morning, it will not give you a single profit, you have just buried money.....like the guy in Jesus's parable.

For people who are working and are not business men, if you save up and get this kind of money, buy dollars and keep, buy tbills, fix part of it with a cooperative bank, fix part with an investment bank like Meristem, FBN capital, Investment one. etc.....

Dont bury money....

You my friend are f.ucking brilliant.
Thank you.

If you follow this advice, you will remain a slave to your Landlords.

If I am to moderate this, I would say, owning your own house is the best investment ever in developing countries in the world.