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.
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.
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.
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.
Investment is math, not emotions!
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.
Investment is math, not emotions!
Buying a home to live in is a good option for SOME people. Especially if you:
1. Can get cheap mortgage (< 8%)
2. Can pay cash.
3. Plan to live in it for 10 years.
4. Need the psychological comfort of home ownership.
Otherwise home ownership is mostly a bad investment.
1. Can get cheap mortgage (< 8%)
2. Can pay cash.
3. Plan to live in it for 10 years.
4. Need the psychological comfort of home ownership.
Otherwise home ownership is mostly a bad investment.
Those two tweet are exactly the same.
Sometimes people are so emotionally invested in a point of view that it clouds their judgment.
You can't make investment decisions emotionally. You'll get into trouble every time you do that.
Selah.
Sometimes people are so emotionally invested in a point of view that it clouds their judgment.
You can't make investment decisions emotionally. You'll get into trouble every time you do that.
Selah.
Investment = Maths + Logic
1. Never invest because it feels good.
2. Never invest because it sounds good.
3. Never invest because you like the manager.
Maths: Do the numbers make sense?
Logic: Do you understand how it works?
Investment = Maths + Logic
1. Never invest because it feels good.
2. Never invest because it sounds good.
3. Never invest because you like the manager.
Maths: Do the numbers make sense?
Logic: Do you understand how it works?
Investment = Maths + Logic
"Renting is wiser for MOST people"
=
"Buying is a good option for SOME people"
=
"Buying is a good option for SOME people"
Real estate investment is different from home ownership. Here's a thread illustrating the right way to invest.
