justmenoni:
If you have the money readily I think it'd better to get a land and build it by yourself... I think it's better to build mini flats these days and with good plan you can have 8-10 miniflats on the ground floor and let's look at lease of 150k that's like150x8k and you have your 1.2m

justmenoni:
Ikotun/abaranje are good areas forreal estate investment and the lands are usually solid and rents there are not bad but the lands are skyrocketing but it's the same all over logos,you can build it then hand over to a good and competent law firm to manage while you sit back and relax quote author=bebe2 post=41595684]

building seem gud, but i have no suitable land at the moment and if i get a bad contractor like i once did, all d money will be gone

and i will be left wit a building site. scary stuff. which areas are u thinking for the mini flats??

tnks for ur contribution.

ContactMegaMan:
Ibeju Lekki is a fast developing area were you can get plot of land as low as N2million. I have a reliable contact that can assist you with that and I believe it will be a very good investment area.

diehard:
Or yo can buy an already built house and renovate it. A lot of them are in the market for sale. Warning - always verify from independence source before paying money

jacarantha:
26m can get you a block of 4 nos of 3 bedroom flats @ Ajah area, and rent is like 550k to 650k per flat.

30m can get you a block of 4 nos of 3 bedroom flats @ Aguda/Surulere area, and rent is like 800k to 900k per flat.

Ironically I was thinking of buying in Detroit or Florida to diversify out of nigeria.

bebe2:


I was playing with numbers this evening, and I really considered the uk.

Lets take the 26m figure if I divide it by 360 dat gives me £72k.

I can buy a beautiful 2 bedrooms house in the north of England for 70k and get rent of £550 -£600.

If we use the 550pm figure, I can get my money back in about 10.5yrs.

If I apply same to the Ajah property, I will get my money in 12 yrs.

And the uk own is less stressful, tenants know wat to do, they loose their job oo, their wife runs away oo, u will still get ur rent paid.

Unlike naija peeps dat will use the slightest excuse to avoid paying rent.

As for Detroit and Florida not too sure, but I hear atlanta is very gud if u looking at the US

bebe2:


I was playing with numbers this evening, and I really considered the uk.

Lets take the 26m figure if I divide it by 360 dat gives me £72k.

I can buy a beautiful 2 bedrooms house in the north of England for 70k and get rent of £550 -£600.

If we use the 550pm figure, I can get my money back in about 10.5yrs.

If I apply same to the Ajah property, I will get my money in 12 yrs.

And the uk own is less stressful, tenants know wat to do, they loose their job oo, their wife runs away oo, u will still get ur rent paid.

Unlike naija peeps dat will use the slightest excuse to avoid paying rent.

As for Detroit and Florida not too sure, but I hear atlanta is very gud if u looking at the US

jaybee3:


You haven't factored the following into your projection:
1) Repair costs due to constant/consistent wear and tear
2) Tax changes coming into force this year. Income from your investment properties will be taxed at higher rate if you are already in that pay band
3) Rent is not guaranteed if you ever get DSS tenants
4) Property might be left empty for a considerable amount of time


Having considered the above, i still think UK property investment is a low risk investment option and should only be considered if you have a low risk appetite. I don't expect real estate assets in the north of england to appreciate as much as south east/west England.

Another thing you can consider is leveraging the properties instead of buying cash as this will allow you gain more financially whilst saving on your tax liabilities going forward.

I was in the same dilemma and i've chosen the naija option via JV.

bebe2:
HI everyone,
am going to keep it short,
the pound to naira exchange rate is going thru the roof, and i think its the best time to invest in nigeria
BUT i dont want to buy a plot and build as i have been ripped off before in the building process.
i cud also buy a cheap property in the uk, but my fear is how things go can terribly wrong in the west, the recent crash comes to mind.
can i get a gud 4flats in a gud area of lagos for about #20m dat can revenue about 1.2m a year?
which area shud i be looking at?
all suggestions appreciated.
N.B
PLS dont pm me. all discussions shud be solely done on the forum.
thank u

Joint venture

bebe2:


Hmmm. This issue needs careful consideration on my part.

And the tax on rental property does dat apply to everyone? Will need to go do some research.

Pls who is JV?

jaybee3:


All income are liable to tax
It get's worse if you are already an higher rate tax payer meaning any income above a certain threshold will be subjected to 45% or there about tax

JV => Joint Venture (You partner someone that already owns a land to develop a property and sell-on on completion)

Yes you need to read more on property investment in the Uk before taking the plunge. The government is trying to regulate the housing industry by ensuring buy to let's aren't seen as a money making machine in order to:
1) safeguard the real estate from impending catastrophic crash
2) free up houses for genuine tenants

bebe2:


UK n regulations sha,

Goin to look up the JV thing.
But partnering with a nigerian, a stranger for that matter, if they know u live abroad won't they try to take advantage?

phoenix480:
If you want to buy-hold and sell property after several years, I would advise Nigeria. In the right areas in Lagos, you can get an incredible ROI after several years compared to the UK.

If you are looking at rental properties, please invest in UK or any western country (but not Nigeria). While most of my property investments are in Nigeria, it doesn't include rental properties. The reasons range from the stress involved dealing with tenants (it can lead to high blood pressure) to poor ROI per annum. On the stress part, my parents do not want any tenants for their two flats due to the negative experiences, they prefer it empty but with peace of mind.
On the other side, I believe you should earn at least 5-8% ROI per annum on your investment rental property. It can be difficult to achieve this in Nigeria when you look at the total cost of the House (cost of land and structure). However, if you are still serious on this, you can get some dilapidated properties for N20m and renovate or as someone suggested, perhaps the Ibeju Lekki axis (due to good property appreciation).

I currently don't have any four flats for that budget, see the ones around N20m here - http://www.naijavillas.com/homes-below-n50-million/. I could ask around for you are still keen.

bebe2:


That the issue am having with naija investments. Tenants can make ones life miserable. Gabbytabby comes to mind.

But I hate the way the govt invades pples privacy in the uk. They just dig and dig until u are totally exposed.

Tnks for the link. Those prices tho

How much wud plots in Ajah be?

And am hearing alot about ikorodu . Wat do u think?

krystal101:
My sister, please don't venture into joint venture. I'm into properties but strictly on the island but we can work around your budget. Please pm me so I can send you what I have.
Cheers

4nobody4every1:
Following, l also have similar plans like the Op although, l have some properties already in Nigeria but want to diversify into so many areas, @Op have you considered the Mile 2 Badagry route?.....with the proposed Ecowas international route, rail and the massive infrastructures that will follow on that axis, l think that axis will make sense too

phoenix480:
Personally I am not keen on the Lagos-Badagry area as none of the infrastructure is even close to completion. The 10 lane expansion shpuld have been completed in 2014 but hasn't yet hit 25% completion. The rail from Mile2 to Marina is also not close to been finished - all due to lack of funding. We hope Gov Ambode can resurrect the projects in the axis.

From an investment perspective, Short to Medium term - No, Long term - Yes.

bebe2:



okk, tnks

gabbytabby:
If you are buying land then it's better to look at ajah axis up to or before lakwe. So many low cost areas in the mainland, land cost is similar to that in the Ajah area while rent is double. Save for foundation, the build cost is similar.

It is better to build 6 two beds than 4 three beds. Rentals can have its problem especially if you have the wrong agent but you keep looking until you find the right one and get involved in the letting process. Avoid a tenant sympathiser let them get the tenant to pay them. Try to set it up properly from day one. Modify your processes until you get your good fit. I was recommended a real estate management co Diya fatimilehin if all else fails I will approach them cos they don't mess about you will be put out if you do not pay your rent.

Always think about diversifying. Some in UK or North America and some in 9ja. Even in 9ja have in the lsland and mainland that way you hedge your funds/risk.

bebe2:


i actually have a property in that axis, in agbara, opic area 5, but the rent there is discouraging, 150k for a 2bed bungalow.

and the traffic there is a killer. like u said long term, it wud be worth it.

seriously looking at the ajah axis, it may even be suitable for me and the family wen we come visiting.

erico2k2:

Try PH.good revenue less wahala