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  1. Calculators
  2. Rent vs Buy

Rent vs Buy Calculator Nigeria

Compare the true long-term cost of renting versus buying a property in Nigeria and find your break-even year.

Property & Mortgage

₦
%

= ₦6,250,000

% p.a.
years

Rental & Growth

₦
% p.a.

How much rent rises each year

% p.a.

Expected annual property value growth

years

Over 10 Years

Buying is cheaper by

₦21,738,471

Buy vs Rent Comparison

Total cost of buying₦16,511,348
Total rent paid₦38,249,819
Monthly mortgage payment₦301,954
Property value at exit₦53,973,125
Equity built₦42,082,097
Break-even pointYear 6

Buying cost includes down payment, upfront fees (~12%), and mortgage payments minus property appreciation. Past appreciation rates are not a guarantee of future performance.

Rent vs Buy FAQs — Nigeria

Is it generally better to rent or buy in Nigeria?

It depends on your timeline, finances, and goals. Buying builds equity and protects against rising rents, but requires a large upfront investment (down payment, fees) and ties up capital. Renting offers flexibility with lower upfront costs. In Nigeria's high-interest-rate environment, renting can be cheaper in the short term (under 5-7 years), while buying tends to win over longer periods.

What upfront costs should I include for buying a property in Nigeria?

Plan for: down payment (20-30% of purchase price), stamp duty (1.5%), consent fees (2-3% depending on state), legal fees (~1.5%), estate agent commission (5-10%), and registration fees (~0.5%). Total upfront costs are typically 10-15% on top of the down payment.

How does property appreciation affect rent vs buy?

Property values in Nigerian cities have historically appreciated at 5-15% per year in strong growth periods, though this is not guaranteed. Capital appreciation is a major factor in favour of buying, especially in growth corridors like Lekki-Epe Expressway and Abuja's periphery.

What happens to my investment if I rent instead of buying?

If you invest your down payment elsewhere (e.g., treasury bills, equities, or a business), factor in the potential return. In Nigeria, short-term treasury bills have often yielded 10-20% p.a., which can make renting more attractive if your investment returns exceed the cost of ownership.

Popular Calculators

Free property calculators for buyers, renters, and investors in Nigeria.

View all calculators

Mortgage Calculator Nigeria

Work out your monthly mortgage repayments and total loan cost.

Rent Affordability Calculator Nigeria

See how much rent you can comfortably afford on your income.

Rental Yield Calculator Nigeria

Calculate gross and net rental yield on your investment property.

Stamp Duty Calculator Nigeria

Estimate stamp duty and all fees when buying property in Nigeria.

Property Deposit Savings Calculator Nigeria

Find out how long it takes to save your home deposit.

Estate Agent Commission Calculator Nigeria

Break down agent fees and total costs for any property transaction.

Property Investment ROI Calculator Nigeria

Calculate total ROI on a rental property investment including appreciation.

Property Renovation Cost Estimator Nigeria

Get a cost estimate for renovating or refurbishing a property.

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