Renting a property in Nigeria is much cheaper than owning a home in most cities. When you are not at the high earning bracket, resist the temptation to put all your earnings into building or buying a house. Unless you can find comfortable mortgage arrangements. Key word “comfortable”

In Nigeria, a owned home does not always translate into a wealth generator. For many, it is tied down potential capital. In business, the one with the funds is the one that can do business. So gather funds first. Then build a home in a good location from the earnings from capital. Do not rush it or dip into your pool of funds.

When you are in business and you seek to borrow money, you need assets that have wealth potential. Many times a mansion in the village might give you some social capital but nothing else. That’s why a self contained apartment in Maitama/Ikoyi might be worth more than a duplex in Kubwa or Egbeda. It’s the law of location.

A sizeable pool of funds gives you leverage. Allows cheaper cost of transactions and higher returns.

Yes, it is good to be your own landlord, great to have your parents sleep in your house and such, but you can’t buy Garri or pay school fees with that.

In my days in valuation, clients in many obscure places did not take kindly to my valuation of their house at less than 10% of the cost. Most would get irritated. But value is not cost.

Turning land to cash is much more easier than turning a building into cash in most cases. The finance market here is still at infancy. And expensive.

At some stage in your life, seek the services of a financial adviser. The cost is cheaper than the gains.

Remember that it is the habits of today that will influence tomorrow.

cc from

Ademola Adigun of Facebook.

Before you give that sort of advice, you must consider the nature and fluidity of the real estate sector in the country.

You must also consider the rate of employment and rate of job security in the country.

That being said, I think it is far more prudent to own ( build or buy) a house(s) in Nigeria.

OP, I think you just twist Robert kyoisky's book to fit the Nigerian narrative, however in Nigeria its better to own your house than rent.

@OP I agree with most of your points, cash is king sort of and allows you capture opportunities

Owning a house still wins every time, with GTbank providing a very interesting mortgage timeline and rates. You can buy a duplex and rent some flats out and use their rent monies to service your mortgage.

Your tenants will pay off your mortgage

Guest911:
@OP I agree with most of your points, cash is king sort of and allows you capture opportunities

Owning a house still wins every time, with GTbank providing a very interesting mortgage timeline and rates. You can buy a duplex and rent some flats out and use their rent monies to service your mortgage.

Your tenants will pay off your mortgage

Using rent to service mortgage is not always feasible except if you have another source of income that generates strong cashflow

SavageResponse:


Using rent to service mortgage is not always feasible except if you have another source of income that generates strong cashflow

Totally true, but having a source of income with significant cashflow is the reason the mortgage was granted in the first place. So yeah we can assume the person either has a good job or runs a lucrative venture.

I did the calculations few months ago, say you earn about 600k monthly, you can have access to at least 50M worth of property to be paid back in 25yrs or before you're 60, whichever comes first. But then again 50M might be too much unless you want a house at elegushi or osapa London.