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In Nigeria, buying a car is regarded as a liability while owning a house is rated as a good investment. However, this line of thought was recently questioned by finance expert, Tayo Oyedeji who argued that homeownership is a bad investment if the purpose is to live there.

Oyedeji is an entrepreneur who feels renting a home is wiser than owning it. He gave an example of himself, stating that he owns few properties which according to him are a bad investment on his part.

Why people own homes

According to Tayo Oyedeji, most people own properties because of psychological comfort, societal expectations, and cultural norms, but when the finances or returns on investment are factored in, such mentality is a bad investment.

Oyedeji stated that investment shouldn’t be made based on emotion. This, he believes could negatively affect people. He said investment should be based on ‘Math’, meaning, finances and returns on investment should be considered, therefore, living in a home you own is a bad investment.


The finance expert expressed his thoughts through his Twitter account, @tayooye. He shared on his timeline that, “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. A home purchase for living is a bad investment.” He, however, said buying to rent is a better investment.

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Reasons for Oyedeji’s stance

While defending his claim, Oyedeji opined that:

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  • An average property in Lagos is N40 million.
  • Treasury bill rate is about 12%.
  • Your N40 million will yield N4.8 million a year.
  • You can rent a good home for N1.5 million and still have N3.3 million left over.
  • Your house is costing you N3.3 million per year. Do the math.

In his reaction to one of the comments on his statement, Oyedeji said, “Homeownership is usually a bad investment in most places, even in the US. There are much better-performing asset classes and it limits your mobility.”

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When and why you should buy a home

According to Oyedeji, individuals shouldn’t buy a home unless

  • Mortgage is < 8%.
  • You can pay cash.
  • You plan to live in it for 10 years.
  • You need the psychological comfort of homeownership.

Oyedeji ended his argument by stating that, “Renting is wiser for MOST people” = “Buying is a good option for SOME people”


Reactions that trailed his comment

Those in support of Oyedeji

There were Nigerians who were quick to support Oyedeji, stating that he wasn’t far from the truth.



Those against Oyedeji


Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: fakoyejo.olalekan@nairametrics.com.


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