The Problem With Buying Property Because Everyone Else Is Buying There

"Everyone is buying there."

I used to think that was a pretty good reason to consider a property.

And i understand why it works.

When a location starts trending, it feels like the hard work has already been done for you. There is psychological comfort in knowing you aren't the only one who sees potential.

In Nigerian real estate, "everybody is buying there" can sometimes sound almost like an investment thesis on its own.

But there is a fundamental problem with relying on the crowd:

Other people's conviction is not evidence that a property is right for you.

People buy property for completely different reasons.

• One person is buying to build a personal home in three years.

• Another is land banking to hold for ten years.

• Someone else is betting strictly on a specific government infrastructure project.

• And a fourth person is simply buying because they keep hearing that "everybody is buying there."

All four buyers might sign contracts in the exact same estate on the exact same day, but they have not made the same investment.

So, how do you know whether the crowd is giving you useful information, or simply giving you a reason to follow it?

Test the Investment Thesis

Before committing capital to any property, i think there are four questions worth answering:

1. Why this property?

Not just why this location?

What makes this particular property suitable for what you intend to do with it?

The fact that an area is developing does not automatically make every property within it a good purchase.

2. Why this price?

What justifies what you are paying today?

If the investment depends on future appreciation, what is expected to drive that growth- a new road, commercial expansion, population movement, or something else?

And how much of that future growth may already be reflected in the price you're being asked to pay?

3. Why this exit?

If this is an investment, what happens when you want your money back?

If your plan is resale, who is the person buying from you later, and why would they choose your property over the alternatives around it?

If your plan is rental income, who is your target tenant, and does the local economy actually support that rent level?

4. What has to go right?

Every property investment is built on assumptions.

Maybe infrastructure has to arrive.

Maybe the population has to grow.

Maybe rental demand has to materialise.

Maybe the area has to become commercially active.

Maybe buyers have to continue accepting higher prices.

You should know which assumptions your investment depends on, and how comfortable you are with them.

If you cannot answer these questions without eventually returning to "but everyone is buying there," you may not have an investment thesis yet.

You have FOMO.

Popularity Is Not Uniform Value

Even when the market is right about a general region, individual properties within that region can still be very different investments.

• The broader location may be expanding, but a specific plot sits in a low-lying area with poor access.

• The corridor may be attracting a heavy interest, but the purchase price on a specific parcel may already reflect much of the growth you are expecting.

• Buyers may be acquiring land easily, while you are buying a structure whose eventual buyer or tenant is much harder to identify.

The market can be entirely right about a general location and still be completely wrong for your specific purchase.

"Everyone is buying there" should therefore be treated as a starting point, never a closing argument.

It tells you where attention is flowing.

Your job is to uncover why that attention exists, and then evaluate whether that reason align with your budget, your timeline, your risk tolerance, and your exit strategy.

Because buying property isn't a group project.

You don't get successful outcome simply because you made the same initial move as everyone else.

And you certainly don't want to wake up five years from now realizing you bought someone else's investment thesis.

Rennie's Insight

Popularity is a data point. It is not due diligence.

Pay attention to where the market is looking, but before you follow the crowd, understand what is driving that attention and make sure the underlying reason actually works for your investment.

Rennie's Question

If nobody else were buying in that location today, what would be your reason for buying?