This question’s been coming up alot lately:
“Should I invest in treasury bills or property?”
It’s a very valid question.
Over the last few years, more Zambians, including those in the diaspora, have become increasingly interested in government bonds and treasury bills because of the attractive interest rates being offered locally.
At the same time, property has remained one of the most popular ways people build wealth, preserve value and create long-term security.
So which investment is actually better?
Recently, I sat down with financial advisor Kalopa Chipati from Pangaea Securities to debate this exact topic. And interestingly, the conversation revealed that the answer is far more nuanced than I thought.
Why Treasury Bills And Government Bonds Appeal To Investors
One of the biggest advantages of government paper is simplicity.
Unlike property, where you may need to buy land, manage contractors, deal with tenants, oversee maintenance (the list feels like it never ends…!)
Government paper is relatively straightforward. You invest your money and earn a return over a specified period.
Kalopa made an important point during our discussion
Government paper is generally considered lower risk because it is backed by the state. Returns are more predictable and investors do not have to worry about vacancies, broken windows or tenant disputes.
For diaspora investors especially, this convenience can be very attractive.
There is no need to worry about property management or bad tenants! In many ways, government paper offers a much more passive investment experience.
Why Property Still Remains Attractive
At the same time, property offers advantages that government paper can’t always provide.
One of the strongest arguments for real estate is capital appreciation.
In a growing market like Zambia, infrastructure development can rapidly increase property values. New roads, malls, commercial developments and expanding urban areas can significantly change the value of land and housing over time.
It is not unusual in certain areas to see property values increase substantially over a relatively short period.
Property also tends to act as a store of value during periods of inflation and currency instability. While the kwacha may fluctuate significantly, a well-positioned property often retains underlying value over the long term.
And beyond the financial side, property can also provide something more tangible:
- security
- permanence
- and long-term family wealth
For many people, especially if you’re in the diaspora, owning property back home carries emotional value as well as financial value.
The Real Question Is Risk
One of the most interesting parts of our discussion was around risk.
Kalopa repeatedly emphasised that every investment must be evaluated based on three important things:
- risk tolerance
- investment horizon
- and financial goals
I totally agree with him.
Property can generate excellent returns, but those returns come with responsibilities and uncertainties. Property is not as passive as social media sometimes makes it appear.
At the same time, government paper also carries its own risks, particularly in an environment where inflation and exchange rate fluctuations can affect the real value of returns over time.
This is especially important for diaspora investors earning in foreign currency.
Perhaps It’s Not Property Or Treasury Bills
One of the most interesting insights from the conversation was the idea of a hybrid approach.
Instead of choosing one investment over the other, investors can potentially use both strategically.
Government bonds can provide liquidity and stable returns while property can provide long-term appreciation and asset growth.
Kalopa even shared examples of investors using returns from government bonds to gradually build property portfolios over time.
I thought that was a very interesting way of thinking about wealth creation because in reality, successful investing is rarely about choosing one “perfect” asset.
It’s usually about balance.
Final Thoughts
So, which investment is better: treasury bills or property?
Honestly, there’s no one size fits all.
The right investment depends on your goals, time horizon, risk tolerance and the type of wealth you’re trying to build.
Some people value liquidity and predictability.
Others value long-term appreciation and tangible assets.
And many people may ultimately benefit from a combination of both.
What I appreciated most about this conversation is that it moved beyond the simplistic idea that one investment is automatically better than another. Wealth building is usually much more nuanced than that.
What do you think?
If you had to choose today, would you invest in treasury bills or property?
No comment