nairacountry:
Profit/cost cutting without compromising d standard.

Whitehorse:

[/b]@Bebe2
Is Iyesi in Ogun state?[b]

@ Alll
One other thing i think in such about types of land is asking yourself if its better to wait for a few years for the area to open up a bit and then build.

For example, the double plot i have by Checking bus stop, along Badagry expressway (like 10mins drive from Agbara), i got in 2009. There was ABSOLUTELY nothing in that particular section of land, just forest. I was the first person to buy there. I just fenced and left it. As of now (2013), the area looks like below (first pic). Second pic shows my property under development.

So, I'm sure Oga Spyder must have considered the pro's vs cons of building now (with this single room design) vs building later (with a more upscale design)... It's all about the ROI again...

By the way OgaSpyder, you've not answered my question about student hostels vs this type of investment in Enugu. No vex abeg o. I'm hear to learn

backwardneva: Like how much does it cost 2 get a tipper load f sand 4 plastering,how much is gravel(tipper),a tipper load of sharp sand is how much?

Mr Mygeria: Subscribed.

How much would I need to save before I embark on a project like this?

bro_fula: How much is d land?

sayso: Bros Spyder,remember December don reach ooooh.My call will come in the next 3 weeks.

bebe2:

at bolded, yes

its after agbara. the road is very bad, but my developer is a hot head, i still dnt know why he bought me dat land.

chyk91: Nice thread, following keenly, but I have a few questions. @ spyder, 1)did you buy this land from an estate agent or a family?
2) Did you encounter any problem like omo-onile problem seen frequently in a place like lagos.
Sorry if the questions are weird, I just love real estate and its something I hope to go into very soon, will be happy to read your answers to my questions sir.

spyder880: Hello my good people, we bring you greetings. We gather here once again to do something very different from what we have been doing. Lets do some business! After brainstorming on some of my previous threads about the business and profitability of building rental properties, I was contacted by a nairalander to walk the talk. We intend to build a full house of single rooms at the cheapest cost and rent same for the increasing Nigerian population, all for profit.

I am fully focused on the profitability of this business, so I will be watching the ROI, (return on investment) very keenly. We have selected and bought two plots of land for this investment.

As usual, the construction of the house, costing, renting and the final breakdown of the profit margin and projection into the near future will all be done here on this forum. Join me once again to make this another great thread, Welcome.

Pictures to follow.

rakumiii:


This is an excellent investment with less capital and can be easily accomplished by most average working class Nigerians as opposed to the 20-40M Naira investments that we hear everyday. I have a few questions for everyone on here because I also want to start on a project but have issues deciding on which one to start with.

1) Why go for face me, I face you?
2) Isnt 2 plots too much for this 24 units?
3) Can you really get a good ROI with this project?
4) Did they owner consider self contained units ? or mini flats?
5) Can you build this kind of project in some of these new estates springing up in Lagos?
6) Does the owner care about the people this place will attract? Can he deal with them when its time to renew their rent or pay?


Please I am a novice so my questions might sound very elementary.

Whitehorse: @Getreal,

Thanks for the info. I was in Enugu two years ago, but did not visit Nike area. I must confess Enugu of now is very different from the Enugu of the 90's... What is the rent like for a two bed in flat in Nike ? Also, any idea what students pay for 1 man rooms these days?

@ Spyder,
How much do you intend to rent this your rooms for? Or if you do not want to tell us now, please what is the going rate in Nike/Enugu?

If the figures add up, Enugu should be a good place to invest, property wise, no need putting all ones eggs in Lagos.

spyder880:

The cheapest room in Enugu goes for N3000 (even if there is no balcony or toilet in the yard). I intend to rent these for N3500 because;

1. It is a new virgin house
2. Has some facilities other cannot have
3. Security will be arranged for the occupants.

Fhemmmy: ^^^^

It will be:
3500 per room and per year = 42,000 Naira
24 units = 1,008,000 Per year
Say 10% default, that will be 100K default per year and maintenance . . .
So average per year would be 908,000 Naira
Should be able to realize your money back with 6 years.

kostadinis:

Thanks Fhemmy. If we factor in the certainty that the investor might request a two year advance payment in all the units, then we would only be anticipating the 10 percent default in the subsequent four years leading to the ROI.
That is 42000X24X2=2,016,000
Then the agreement fees of most probably 5000X24=120000
Total of 2,136,000 bulk cash in the first two years. The percentage of this amount to the total money expended on the project is encouraging for a project like this in the first two years.

spyder880: @ Whitehorse, Fhemmmy, the cost of each of the lands is N2m, not N1m. That is why I am using a PE ratio of 8x as my calculation.

The beauty of this investment is not the property or the noise in the yard, but the future value of this same land in that location 8 years later. You can choose to;

1. Continue collecting free money as rent every month, since you have got all your initial investment back.

2. Renovate the house, remodel it and rent it as something else.

3. Demolish the whole house and use same for another project entirely, like a block of luxury flats in the now bustling neighborhood.

4. Sell the land as a fresh land after demolishion and take your capital somewhere else.

So much possibilities!