It’s Wiser To Rent A House Than To Buy It – Finance Expert

A former professor at the University of Georgia in the US, Dr. Tayo Oyedeji, has noted that contrary to popular belief, “homeownership is mostly a bad business.”

This, the Oxford-educated entrepreneur, stated through his Twitter account which shocked his followers.

See his tweets below:

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.

— Dr. Tayo Oyedeji (@tayooye) November 12, 2019

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.

— Dr. Tayo Oyedeji (@tayooye) November 12, 2019

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!

— Dr. Tayo Oyedeji (@tayooye) November 12, 2019

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.

— Dr. Tayo Oyedeji (@tayooye) November 13, 2019