Can Monthly Installments Really Buy You a House? Let’s Do the Math

For most Nigerians, the idea of buying a house feels out of reach. When you hear prices like ₦30m, ₦50m, or even ₦100m, the natural response is: “Where will I see that kind of money?”

Because of this, many people assume homeownership is only for the ultra-rich or those with huge savings. But what if you didn’t have to pay everything at once? What if you could spread the cost of your home the same way you spread your rent or car payments? That’s where installment plans come in.

Why People Doubt Installment Plans

Installments for things like phones, furniture, or cars are common. But for homes, a lot of people feel it’s either a scam or too complicated. The skepticism is real because traditionally, Nigerians are used to lump-sum payments for land or houses. If you don’t bring the full cash, you don’t get the keys.

However, the real estate market is changing. More developers and proptech companies are introducing installment options that make property ownership possible for the middle class. The question is: does it really work?

Let’s Do the Math

Imagine you’re eyeing a property worth ₦30 million. Here’s a typical breakdown with installments:

• Initial Deposit: ₦5 million upfront (to secure the property).
• Balance: ₦25 million spread across 5 years.
• Monthly Payment: ₦25m ÷ 60 months = about ₦420,000 per month.

Now, compare this to what many tenants already pay in cities like Lagos or Abuja. A 2-bedroom flat in Lekki Phase 1 or Wuse 2 can easily cost ₦3m–₦5m annually. That’s about ₦250k–₦400k monthly, money that goes straight to your landlord.

See the difference? With an installment plan, you’re paying roughly the same amount, but every payment builds equity in a property that will eventually be yours.

Why Installments Can Work for You

1. Affordability through spread payments – You don’t need ₦30m sitting in your account. The structure allows you to buy while still earning.
2. Ownership over time – Instead of paying “rent forever,” you’re gradually becoming a homeowner.
3. Protection against inflation – Property prices in Nigeria rarely stay the same. A house worth ₦30m today might cost ₦40m in a year or two. By locking into an installment plan now, you secure your property at today’s price.
4. Flexibility – Some developers even allow quarterly or annual installments, depending on your cash flow.

Things to Keep in Mind

Installments are not a magic bullet. They come with their own responsibilities. Here are a few things to note:

• Extra costs: Some plans include interest, service fees, or facility charges. Always read the fine print.
• Discipline is key: Missing payments could mean penalties or even losing the property.
• Choose trusted developers: Not all installment offers are genuine. Work with reputable companies that can guarantee delivery.

The Bigger Picture

Yes, monthly installments can buy you a house. It may not be your dream home immediately, but it gets you started on the journey to ownership. And that’s far better than watching millions disappear into rent year after year.

The truth is simple: if you can pay your landlord every year, you can pay towards owning your own home. The difference is that with installments, your money works for you instead of against you.

This is exactly what platforms like STOW are designed for, giving everyday Nigerians flexible payment options, savings plans, and even fractional ownership opportunities. Instead of being stuck with rent, you get structured pathways to start owning property, whether through small contributions, co-ownership, or long-term installments..