Its Wiser to Rent A House Than to Buy it - Finance Expert, Dr.Oyedeji Gives Insight

Dr. Tayo Oyedeji, a former professor at the University of Gerogia in the US, has said that, contrary to popular belief, "home ownership is mostly a bad business."

The Oxford-educated entrepreneur, who authored the book 'How I Retired at 40' shocked his followers when he made the revelation on Twitter and gave reasons.

He wrote:

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.

He added: "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."

He went on to point out that, "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!"




 

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Posted: at 14-11-2019 09:06 AM (4 years ago) | Addicted Hero

Hmm

Posted: at 14-11-2019 10:21 AM (4 years ago) | Gistmaniac

This man na idiot.

Posted: at 14-11-2019 03:37 PM (4 years ago) | Gistmaniac

Bros that ya story na for yankee no be for Naija.

Posted: at 14-11-2019 08:03 PM (4 years ago) | Gistmaniac

Honestly, I don't even know whether to listen to it or not. Because you'll end up spending money, it's just that if you buy a house, you don't have to think about paying for it later on. I think it's better to buy a plot of land and build a house yourself with the help of professionals so visit this page. After all, it will be more pleased to know that you can spend the amount you spent on the payment of the house on something for yourself. You'll be able to buy things and appliances that you like. And when you rent, it's pretty hard to go shopping for yourself, spending every time for 1.3 million. Am I not right?

Posted: at 28-08-2021 07:42 PM (2 years ago) | Newbie