Cowrywise

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[Cowrywise @cowrywise]

What if buying a house isn't the investment you think it is?

A house can be a great purchase, but if your goal is building wealth, buying property may not always be the best use of ₦61.6 million.

Let's run the numbers🧵

[Miracle Ndem | Effective Ads Designer @miraclendem]

@cowrywise “If you had a the chance, would you rather own a shirt or borrow”

[Cowrywise @cowrywise]

@BiriabebeParker Based on our calculations, that could work out very well.

Here’s our projection using ₦61.6M invested.

[Cowrywise @cowrywise]

Renting a 3-bedroom can cost you ₦70M over 15 years, while owning that same 3-bedroom will likely cost you ₦61.6M today and it’ll appreciate over time.

With these figures, which is the better option?

[Cowrywise @cowrywise]

But it only works if you actually invest.

Here’s how ₦61.6M grows in different investments over 10 and 15 years.

[Cowrywise @cowrywise]

A good way to see it.

Actually ₦3.5M rent that grows at 15% per annum (on average).

But yes, investing can be a good way to go. Based on our calculations, a diversified portfolio can return ₦1.7Bn over 15 years. While the house appreciates to around ₦337M over the same period.

[iBK ⚡️ @ibkoriginal]

@cowrywise So N4,7m/yr rent ? And I pocket N56,4m for investments.

If I avg. 15% returns per year that’s compounded to N126,9m in 14 years. Minus an avg rent of N8m across the 15years (taking into account escalations) = N118,9m gained +/ -

I buy a better house & quality of life be better

[Cowrywise @cowrywise]

@Pepps01 Also, if you are ever considering owning, here’s a quick decision matrix you can use.

[Cowrywise @cowrywise]

Yesss.

And there are even more factors to consider:

Will the house appreciate more than a comparable investment over the same period?

That’s really the point.

The next time you dream about owning a house or see someone trying to buy one, these are the questions worth asking.

Because the rent vs own conversation shouldn’t be about what’s traditionally done or whether it’s “time to own.”

It should be about what actually works for your income, goals, lifestyle, and stage of life.

Sometimes that’s buying.

Sometimes it’s renting and investing the difference.

The important thing is making a decision intentionally, not simply following the default path.

Read more about our answers to your questions here: https://t.co/2Y29Xuia2x

[Cowrywise @cowrywise]

@Adedaniels18 2-bed*🙏🏽

[Cowrywise @cowrywise]

For those who can afford one, the next question becomes: "Is this the best use of my capital?"

Those are two different conversations, and both deserve different answers. The report explores both. The rent vs own debate isn't really about houses. It's about affordability, opportunity cost, investing behaviour, and the kind of life you're trying to build.

Read more here: https://t.co/2Y29Xuia2x

[Cowrywise @cowrywise]

That's exactly where the conversation starts.

The post wasn't saying everyone has ₦61.6M sitting in their account.
It was challenging the assumption that buying is always the obvious financial decision once you can afford it.

For most Nigerians, the first question is actually:
"How do I afford a house?"

[Kingsley #Etiquette Ogbiti @kingsleyogbiti]

@cowrywise How many salary earners in Nigeria can bring 61.6 million naira once without borrowing I leave this question for @cowrywise to answer .

[Cowrywise @cowrywise]

@myriadfalcon 2-bed*🙏🏽

[Cowrywise @cowrywise]

@driimchaser20 The cost of owning is for a 2-bed, not a 3-bed as earlier stated🙏🏽

For the 2-bed, the cost is factored in.
A 2-bed in a decent Lagos mainland area is priced at ₦55M. Factoring in the the extra costs, the total comes to ₦60.5M to ₦66.9M (₦61.6M on average).

[Cowrywise @cowrywise]

See the full breakdown here: https://t.co/88FavO2LsX

[Cowrywise @cowrywise]

No, the calculation is based on your rent starting at ₦3.5M then growing at roughly 15% per year on average.

[DotunLagosRealestate @daio_95]

@funt_ODD @cowrywise You assume your rent will be fixed at 4.7m/year for the 15years.

[Cowrywise @cowrywise]

2. What if someone rents and invests the difference instead?

That’s where things get interesting.

If ₦61.6M is invested in a diversified portfolio, it could potentially grow to around ₦1.7B over 15 years, while the house itself could appreciate to roughly ₦337M over the same period.

But there’s a catch.

The investment strategy only works if the money is actually invested.

If that capital ends up sitting in a low-yield account, funding lifestyle upgrades, or getting chipped away over time, then home ownership starts looking a lot more attractive because it forces a level of savings discipline many people struggle to maintain.

Which is why the real question isn’t:

“Should I rent or buy?”

It’s:

“Can I afford either option?”

And if I can,

“Can I trust myself with ₦61.6M?”

Read the full breakdown here: https://t.co/2Y29XuhCcZ

[Cowrywise @cowrywise]

You’re right. The comparison is simplistic.

It was meant to be.

The point of the post wasn’t to end the rent vs own conversation. It was to start it.

For many of us, the housing conversation begins and ends with:

“You’re earning more now. It’s time to buy a house.”

But money decisions are rarely that simple and that’s where the questions you’ve asked come in.👇🏾

[Olúwafúntọ́ @funt_ODD]

@cowrywise This comparison is far too simplistic.

1. How many people can actually drop ₦61.6m cash on a house today?
2. For those who can, what happens if they rent for ₦4.7m/year and invest the remaining ₦56.9m instead?

[Cowrywise @cowrywise]

1. How many people can actually afford a ₦61.6M house?

Based on our analysis, you’d typically need to be earning around ₦2.5M+ monthly before buying a house in that range becomes a realistic option.

[Cowrywise @cowrywise]

The cost of owning is for a 2-bed, not a 3-bed🙏🏽

[Cowrywise @cowrywise]

Renting a 3-bedroom can cost you ₦70M over 15 years, while owning that same 3-bedroom will likely cost you ₦61.6M today and it’ll appreciate over time.

With these figures, which is the better option?

[Cowrywise @cowrywise]

@Babajiide 2-bed, not 3-bed😭

The break down and our sources are in our report here:

https://t.co/eCWRsQUEUE

[Cowrywise @cowrywise]

Amazing work Lamide!🥳🥳🥳

[Lamide | Brand Strategist ✨💚 @lamideee_a]

You see that gulley I was in? Never again!

[Cowrywise @cowrywise]

@A_Feranmi It’s more speculative, but the pride part is a factor too.

The idea here is to turn attention to alternatives that may serve people more. Of course owning can still be on the table, but should it be now or later?

[Cowrywise @cowrywise]

What if buying a house isn't the investment you think it is?

A house can be a great purchase, but if your goal is building wealth, buying property may not always be the best use of ₦61.6 million.

Let's run the numbers🧵

[Miracle Ndem | Effective Ads Designer @miraclendem]

@cowrywise “If you had a the chance, would you rather own a shirt or borrow”