Myth: The More Expensive the Property, the Better the Investment

Fact: High Price Doesn’t Always Mean High Return

There’s a common belief that buying a more expensive property guarantees better returns or prestige in the real estate market. However, this isn’t always true. A smart investment is not just about the purchase price, but about how well the property performs over time in terms of value, rental income, and demand.

1. Price ≠ Profitability

A property priced at ₦200 million might only yield a modest return on investment, while a ₦50 million property in a strategic location could deliver higher rental income and faster appreciation. The key is ROI (Return on Investment), not just cost.

2. Luxury Properties Often Have Limited Demand

Expensive homes or luxury apartments cater to a narrow market. Finding buyers or tenants can take longer, and during economic downturns, high-end real estate is often hit hardest as people tighten their budgets.

3. Higher Maintenance and Holding Costs

Premium properties typically come with higher maintenance fees, service charges, and utility costs. If not managed properly, these can eat into your profits—making the investment less attractive in the long run.

4. Affordability Drives Demand

Mid-range and affordable housing often see more consistent demand, especially in urban areas. These properties are easier to rent or resell, and can offer quicker cash flow, particularly for first-time or small-scale investors.

5. Market Timing and Research Matter More

An affordable property bought in the right location, at the right time, with good valuation and strong potential for appreciation, can outperform a high-priced one in a saturated or declining area. Success in real estate is about timing, research, and strategy—not just cost.

Conclusion

In real estate, bigger price tags don’t always mean better investments. Always look beyond the surface to assess the property’s potential for return, demand, and long-term growth. Smart investing means buying with your head—not your ego.