--------------------------------------------------------------------------------
Good morning my people, its a very bright day, which provides a nice opportunity to learn a few tips about the building industry. Properties have been known to generate stupendous wealth the world over. Nigeria is not an exeption to this great phenomenon, in fact, we are most advantaged to prosper in real estate. Just look around you in every part of this country, all you see is space, rich forest background, open grasslands and even deserts, water fronts also stretches around many parts, this is a very good opportunity to build quality houses and rent, sell, lease or occupy for your pleasure.
Billions have been made and will still be made by fast entrepreneurs who see the goldmine in building houses. But which style is the best way to reap bountiful wealth in real estate? Some say renting, others say building and selling, so lets look at these two concepts in detail. Before I continue, it will be worthy of note to point out that both styles of investment make huge returns, depending on the managerial expertise of the operator. Its like most other businesses, where you lose big money if you are sloppy in financial matters. In my next post, I will attempt to analyse the two aspects in detail.

In my hey days in the Stockmarketnigeria.com, (2006) I opened a thread to look into the two ways of investing in the stock market, the thread was opened by me and called 'Trading vs investing'
The thread ran for a long time, urging some heavy arguments from experienced traders and investors. This talk about renting houses as opposed to selling houses is similar in context to that thread. I also gatherd a lot of lessons and experience from that thread and it was very useful for me in my real estate business. Actually, real estate is very similar to the stock market, just 'buy low, sell high' alas! If only it was as simple as that, there will not be any poor man in the world. The reality is what we shall look into in our next few posts.

Building houses for sale is a very good business, and can be very rewarding. Investors have been known to sell houses for twice the amount they invested in it. There is also a good market for such finished houses. Some of the reasons many buyers exist for those finished units are

Lack of time
So many people are so busy that they will never have the time to walk the sites to monitor the nitty gritty of constructing houses. They will prefare to buy a ready unit and move their family in, without bothering their jobs and businesses.

Lack of experience
How many people can read and interprete a building plan with all its jargons, how many people knows the difference between a column and a beam? These people will just love to buy than go through the rigours of building it themselves.

Loss of money
Many prospective house owners has been ripped off big time by either building contractors or family members, or a combination of the two forces. How else to avoid 'dogo turenchi' than to buy a ready apartment and collect your new keys/documents and pack in same day.

In summary, there will always be buyers for new and old houses, but so are the pitfalls plenty in that business. The biggest of the drawbacks in selling ready houses is the sitting period. By this term 'sitting period', I mean the time it will take between the time you complete the house and the time somebody pays for it. This is a very trying period, when you are open to so many emotional dangers, when lack of cash can make you commit blunders. This stage hit me so hard that I nearly quit the building industry altogether.
More stories later.

Sitting periods are always very irritatng, thats when you will nearly regret building the house. That is a period when someone will walk up to you and offer you half of the money you spent building the house, and you can hardly contain your rage. The customer is always right, so you bottle your emotions while the prospective buyer offers you N3m for a house which cost you N5.7m to build! And to make matter worse, he will tell you all the places you made mistakes, telling you he prefares a blue roof to a red one or that the tiles you fixed is useless to him and will be torn off, or that "land in this area is N1m, how come your house is very exhorbitant?"

Do you know that bigger sellers can squeeze you out, well they used so many rough tactics on me, I was too young back then, only around 27 years, and many people couldnt trust a 'fresh face' so they used that age thing against me. Alleging that I may run away with peoples money, so my house sat in the market for too long, denying me of good money and rent, since buyers always love vacant houses.
More stories later.

That's what I am talking about. At least anybody that wants to argue/discuss can come over here instead of the other thread, lol.

The thing with building to sell is you have to be prepared to wait a while for the sale of your property,
except you can sell of plan which requires convincing prospective buyers. knowing your target market will help
get a quick sale. I believe you need a good negotiation skill in order to source quality materials at a cheaper rate
so as to give your buyers a superb home.

How your own words could come back and haunt you i am in this kind of fix now, to sell or develop for rent as usual? Will be back later.

Fhemmmy:

Lol . . I will be following to see how my Oga at the Top made a decision and what led to what decision that was made . . .

Oga mi, this is not funny anymore o
Conflicting ideas clashing with established strategies here. Maybe I should just give more time for these things to take shape.

Fhemmmy:

Sometimes, it is always the best thing to do, but i am sure that if you look at the advantages and disadvantages of one over the other, one will be better . . . and after all analysis, you will be able to pick one.

Its true, very true.

Hello nairalanders, bless us all! Bless us all! Bless us all! I've been reading stuffs on nairaland for years now, but I decided to become a member for not up to 1 week now.

I've gained so much beyond my widest imagination. Thanks to nairaland I now buy cars for people from abroad (on order). Which is one of the additions I've made to my building career. (As multi dimensional income is the best no matter how small they come). I've improved more on my building designs and skills, just to mention a few.
I'd stop here.

@Spyder, I've been following your threads on here, and they've been wonderful. Please what happened to the owerri 5bedroom duplex, the one with similar front pillars like the PH mansion? Didn't get to see the final cost of the building. I only say the 10. Something million for the carcass (without windows yet)

2nd: from the other thread to this one you've promised to explain building for sale vs for rent proper, we or I am still waiting on that. I really want to go into building for sale cus of the kind of tenants available these days- thanks to the nations economy, and some tenants who know the law better than others.

I'll wanna know more about this very topic and if anyone is into building and selling, please show some love. Let's know your cost and sold price, as well as the "sitting period."

Also if owerri is advisable for building and selling.

Thanks so very much, and God bless us all.

Chairman, please revisit this thread as time permits to provide input on current conditions on renting versus selling.

EgunMogaji:
Chairman, please revisit this thread as time permits to provide input on current conditions on renting versus selling.

I will Sir.My holiday expires by tomorrow. I will be back to my desk.

Hello my people, I am back on the saddle again. And I will still be talking on the hot topic of building for rent vs building for sale. Without removing anything from my comments up there, (some are up to 7 years old but still as relevant today as it was back then) So let us continue.

I am going to be attaching more pictures to make the thread more interesting.

Yay the Doctor is in.

BUILDING A HOUSE WITH AN INTENTION TO SELL IT.

There are a lot of consideration you have to bear in mind if your purpose is to build a house and offer it for sale. You should reflect deeply on these points;

TARGET MARKET
The people you intend to sell this house to is of utmost importance if you are building a house for sale. This is because in a any segment of most societies, there are the people in most need to acquire a house. I have noticed that within the buying population is about three categories or classes of humans

There is the very young people buying house to build a family in. This is the segment of the population that are recently married, with very small families of one or two children, some are still expecting children while others are single but has intentions to marry and raise a family in the next few months/years. Note that the needs of this group of buyers will be different. They may be young and not too rich, as they might be in the stage of their life when they are still struggling to find a footing in life. Therefore their budget will be low. They might not need compounds with large spaces since the money to pay foe luxury is usually scarce as they save to build a better future.

There is also the middle age population, people aged between 40-55 years who might have achieved some reasonable level of success in life. This population will require some level of space, usually they have more children at this age and the more people there is in a house, the more space required in the compound for play space, car parking slots and even bigger house with more bedrooms and other facilities. Some of the members of this group of people are richer, and therefore require a much better quality of life. Thus must reflect in the finish for the house they intend to buy.

The next group of people are the older generation, people whose children must have left house, who achieved a higher level of success and now wants to move into a much better neighbourhood, maybe a smaller house with less bedrooms, or less car park. These are people who love some quiet, decent dwellings.

As an entrepreneur wishing to sell houses, you should choose your target market and build to satisfy one of these three groups. That way you can know and expect the type of people coming to buy your houses.

BUILDING A HOUSE WITH AN INTENTION TO RENT

The conditions are almost same as above, because the space they need is as a result of the age and stage of their lives. But there is a point to note. If you are developing a house to rent, you have to make a choice of your finish standard. There are at least 3 finish standard in houses for rent. They are the;

1. Basic finish
2. Standard finish
3. Semi luxurious finish
4. Full luxurious finish

I will explain all of them in details later today, going to sites now.

spyder880:
BUILDING A HOUSE WITH AN INTENTION TO RENT

The conditions are almost same as above, because the space they need is as a result of the age and stage of their lives. But there is a point to note. If you are developing a house to rent, you have to make a choice of your finish standard. There are at least 3 finish standard in houses for rent. They are the;

1. Basic finish
2. Standard finish
3. Semi luxurious finish
4. Full luxurious finish

I will explain all of them in details later today, going to sites now.

I am building a 3/2 bedroom semi detached bungalow... Pls what type of finishing do u recommend. As my family would stay in the 3bedrrom and rent the two bed.. Thanks

Erums:


I am building a 3/2 bedroom semi detached bungalow... Pls what type of finishing do u recommend. As my family would stay in the 3bedrrom and rent the two bed.. Thanks

I suggest you do a semi luxurious finish for the unit your family will stay in, then do a basic finish for the unit you want to rent. But if your area is a rich neighborhood where renters can pay more, then it makes sense to upgrade the finish of the rental unit to a semi luxurious finish.

spyder880:


I suggest you do a semi luxurious finish for the unit your family will stay in, then do a basic finish for the unit you want to rent. But if your area is a rich neighborhood where renters can pay more, then it makes sense to upgrade the finish of the rental unit to a semi luxurious finish.

What are the pointers to a semi luxurious finish...
Also it's not a rich neighborhood.. Just basic pple having family homes especially... I actually decided to build because inflation is depreciating money saved... What do u think sir

Erums:



What are the pointers to a semi luxurious finish...
Also it's not a rich neighborhood.. Just basic pple having family homes especially... I actually decided to build because inflation is depreciating money saved... What do u think sir

Semi luxurious means very good quality fittings, aluminium roofing, parapet, high quality Nigerian tiles, good plastering and good quality sanitary wares.

spyder880:


Semi luxurious means very good quality fittings, aluminium roofing, parapet, high quality Nigerian tiles, good plastering and good quality sanitary wares.

OH thanks alot... Yes the house is gonna have a parapet...and all uve listed.. However the parapet crosses the rental side too

Myrtle Beach oceanfront condos are available throughout the Grand Strand. They range from one bedroom to three bedrooms and can have breathtaking views of the Atlantic Ocean. For more detailed info on condos for sale.