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Nairaland Forum / Nairaland / General / Properties / Building A Student Hostel : Profitability And Challenges (43995 Views)
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Re: Building A Student Hostel : Profitability And Challenges by zenatta: 8:59pm On Jun 19, 2011 |
@Relector, you'd always recoup capital and then some, the beauty of this investment is the long-term dividend. I'm still of the opinion that rent per bed/ study space is outrageous but thats my opinion. Students whine a lot, they complain about virtually everything so do not deal directly with them but that's not to say you employ a heartless care-taker to deal with them. Strike a balance with a super, who oversees the apartment and has enough chutzpah to handle them. I almost always encourage privacy, less to deal with that way. Provide electricity. On no account must they be left with such a responsibility. Fueling and repairs is an upfront payment. Students are rather famous for considerable damage to property so from start bear in mind when infrastructure is put in place. And they are not exactly the cleaniest people on earth so provide cleaning services at an easy cost. With experience you'd grow to know where and where not to weave in costs. Can't rule out cases of 'minor' fire incidences. In case of cable, let there be a central feed, My property was right in town so heard of the shenanigans of my beloved tenants, most very unsavoury. Your prop. would most def. be famous, mostly infamous. Will you be providing meals for them and shuttles to school, not free of course, then you'd have slaves for ever. Students never forget a good turn. 1 Like |
Re: Building A Student Hostel : Profitability And Challenges by maninmood(m): 9:50pm On Jun 19, 2011 |
Fiver: Ignoring you could have been better. Reflector: Bro, I guess you have gone a long way in estate property investment, you should know that this kind of investment is long-term based, but it's simply the best cuz its like a fixed asset with little income coming out of it. I make around 2 million yearly on d property after settling all the bills attached to it, that is if all the rooms are rented. To you, is it profitable? Moreover, get a lawyer for tenancy agreements,et al, and a caretaker for proper management of the property. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 10:35pm On Jun 19, 2011 |
zenatta: Plenty food for thought there. I think meals and transportation are best outsourced let someone with the expertise provide the service. For the meals I may just rent out a kitchen space and dinning to a caterer who provides the meals and charges the students directly. Am curious to know (if you don’t mind) why you sold off your hostel. |
Re: Building A Student Hostel : Profitability And Challenges by Nobody: 7:37am On Jun 20, 2011 |
Take this one that i left behind, but expensive
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Re: Building A Student Hostel : Profitability And Challenges by zenatta: 5:48pm On Jun 20, 2011 |
@Reflector looked for your other post, its gone. Take a look at the enclosed https://www.nairaland.com/nigeria/topic-289834.128.html Reflector: burnt out. Building, of any category, has a certain attraction but for me, at that place in my life, it was gone. A most bizzare thing to have happened to me cos this was my whole life. Something else was beckoning, I guess am done now and roaring to go. Not much beats the adrenalin and rapport with your customers who may later become friends. I have eyes on this delightful quaint li'l place. |
Re: Building A Student Hostel : Profitability And Challenges by GeorgeD1(m): 5:52pm On Jun 20, 2011 |
odiaero: are you sure this is a students hostel? looks more like a first class check-in on an airbus to me. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 12:42pm On Jun 23, 2011 |
okay so here I am populating a spreadsheet and trying to see if it is feasible to build a 20 room student hostel on 2 plots of land with 25M (inclusive of land of 5M). At this amount the cost of 1 room would be about 1.25M making it possible to rent each at not more than 100k to achieve a yield of 8% and a payback time of 12.5 years. Hmmmm How realistic is this? |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 1:00pm On Jun 23, 2011 |
When building a student hostel of lets say 20 rooms self contain,there is need to put enough space into consideration.A storey building of 10 rooms up and 10 rooms down on two plots of land.Also you need to build shops to let for ,restaurant to serve the students and library if possible for extra cash. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 4:19pm On Jun 23, 2011 |
A friend who bought land close to a campus said he shelved the idea due to frequent cult activities. His fear is that once there is a cult fight in your hostel no student would rent it again? |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 4:42pm On Jun 23, 2011 |
I don't think such incident (cult fight)would make the students not to rent any.Rather if the hostel becomes notorious for such that should be when that will come to play.Every endeavour/investement have it's own risks but rather on dwelling on the risks we should be optimistic and hope for the best.Seriously since this thread started,i have gathered quite a lot and have already called home for land. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 9:39am On Jun 24, 2011 |
hugooh42: I guess screening of students you rent to becomes very important in order to weed out known cult members, another strategy is to to rent to ONLY female students as female cults are usually not violent, distructive and few/absent in several campuses, but then these female students could be girl friends of cult members ahhhh. Anyway I just did a conceptual design of how a typical student room could look like in the hostel, next stage is to see if I can fit 20 of these in a 1 storey building designed in an L-Shape on a 100ft x 100ft land while also including a restaurant with kitchen for meals, a provision store, a saloon (barber/hairdresser) as well as a room for the care taker. Can you critic the design below as much as you can, so I can improve on it. |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 10:06am On Jun 24, 2011 |
Will it not be better to reduce the size of the room, then have the bed suspended in the air, and the closet underneath or reading table.With that there will be enough space in the room.If the rooms look to large it will encourage squatting many students.I wonder why people are not contributing to these thread or don;t they see the profitability of these project? If i may ask Reflctor,are you are building engineer? |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 10:30am On Jun 24, 2011 |
hugooh42: Yeap that is a nice idea although it increases construction cost but on the long run could be more profitable since the current design can only fit in 7 rooms per floor on a land 100ft long hugooh42: don't worry not everyone likes to share their ideas but most want to tap what others have to offer and add to theirs. hugooh42: nope am not a building or civil engineer. although i studied another branch of enginering in school which am not even using. lol. 1 Like |
Re: Building A Student Hostel : Profitability And Challenges by omoola007(m): 2:41pm On Jun 24, 2011 |
why not build long rather than wide. that way you can have more http://www.stocktondesign.com/plans.php?act=detail&f=3_12-2915.jpg 1 Like
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Re: Building A Student Hostel : Profitability And Challenges by DisGuy: 3:35pm On Jun 24, 2011 |
reflector, have you ever seen a nigerian hostel? The design is good but i was wondering why not have one kitchen/lounge for 5 rooms- where they keep the hoover, cupboards, dinning table I think having 5 different kitchen is risky and takes up too much space. Ensuite rooms with reading table and cupboards should be decent |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 3:57pm On Jun 24, 2011 |
omoola007: Thanks I have updated the sketch putting 3 rooms side by side in a long design similar to that in your picture, from my calculation a 100ft long plot would take 7 on each floor, if I reduce the rooms to 10 x 10 it would take 8 rooms per floor. so for the 20+ room a 3rd floor may have to be introduced if the land is one plot or an identical building opposite if 2 plots. (Note most plots of land are 100ft by 50ft except Lagos which uses 120ft by 60ft.) |
Re: Building A Student Hostel : Profitability And Challenges by omoola007(m): 4:18pm On Jun 24, 2011 |
Cool another idea that may work is have 2 rooms share Toilet and Bathroom (Romeo and Juliet Style). Employ a cleaner weekly and charge them service charge. I also like the idea of a common room rather than having big rooms. Have One common room and Kitchen on each floor with TV and furniture. Privacy in room other socializing in common area. |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 5:25pm On Jun 24, 2011 |
@Reflector How about building in "L" form ,if there is 8 rooms downstairs and upstairs (10 by10) add extra 2 rooms on the" L" wing,thereby making it 10 rooms up 10 rooms down on 100ft by 60ft land.By your estimate how much do you think this project will cost?.Excluding interior furnishing. |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 5:38pm On Jun 24, 2011 |
I think having 5 different kitchen is risky and takes up too much space. Ensuite rooms with reading table and cupboards should be decent Some big girl's would not like the ideas of sharing their kitchen with others.So i think having separate kitchens are Ok. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 6:11pm On Jun 24, 2011 |
hugooh42: very rough estimate is as follows: Foundation - 3M Block work to decking - 750k Decking - 3M Blockwork to Roofing level - 750k Roofing Woodwork - 1.5M Roofing (long span plain aluminium) - 2M Total: 11M just to get the structure standing. there are still plenty things to do before plastering such as door and window frames, electrical and plumbing pipings, ceiling board installation thereafter you can plaster. After plastering you start the finishing doors, windows, electrical wiring etc etc. I can upload a spreadsheet I use in planning my projects which shows the various stages etc. |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 9:46pm On Jun 24, 2011 |
This is how it looks on a 100 feet by 50 feet plot. The short side of the L can't take more than 1 student room so it makes better sense to make it bigger and place the restaurant, shops and caretakers room on the 2 floors. |
Re: Building A Student Hostel : Profitability And Challenges by DisGuy: 12:31am On Jun 25, 2011 |
hugooh42: these big girls will be cooking with kerosene and stoves, smoke/fumes everywhere, better to have a cooking gas with dinning table, they are mostly in their first year anyway. If big girls can pay £85/week and share kitchen a TV room i dont know the kinda big gals we have in naija o especially outside lagos/phc how much are these big girls paying? are you targeting Abuja or Lagos institutions? |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 1:17pm On Jun 25, 2011 |
Dis Guy: Naija big gals on campus who don't come from rich homes have Aristos footing their bills and those without a standy Aristo do RUNs to make money. |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 2:23pm On Jun 25, 2011 |
spent close to 35mil including the land purchase. 16 rooms, a storey building. 8 rooms on each floor. I would have loved post a picture of it, but for security reasons,sorry,no. How can one build a hostel of 16 rooms upstairs for 30 million? cos he said the land was 5million.Is this realistic? |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 2:40pm On Jun 25, 2011 |
hugooh42: why? you think it is too cheap? |
Re: Building A Student Hostel : Profitability And Challenges by hugooh42(m): 4:44pm On Jun 25, 2011 |
It's rather on the high side.I hope this figure here doesn't discourage people like us who really wants to set up hostels. |
Re: Building A Student Hostel : Profitability And Challenges by DisGuy: 8:20pm On Jun 25, 2011 |
Reflector: Bros o, this Aristo business model is not sustainable o, what if the Aristo business plan vanish with time, 25 years ROI no be moi moi, |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 8:58pm On Jun 25, 2011 |
Dis Guy: For where there would always be men footing bills for their smallees on campus. Nevertheless my plan is on affordable accommodation for most students (not for super rich big/RUNS babes) as such a room must not go for more than 100k per annum and I must be able to recoup my cost in at most 15 years. |
Re: Building A Student Hostel : Profitability And Challenges by leumas2009: 8:10pm On Jun 26, 2011 |
Hi Guys, I am currently building one of these hostels and it is about 40rooms, and the estimate given to me is about 28million and this was last year but i expect this to go to about 32million bearing in mind the increasing cost of building materials. I dont have the design to hand but it is self contained with bathroom, kitchen units and a reading area. its got a common room on each floor as it a one story building. But i do think its a worthwhile investment |
Re: Building A Student Hostel : Profitability And Challenges by DisGuy: 9:18pm On Jun 26, 2011 |
@ leumas what region is your located in and how much are you looking to rent it out for? |
Re: Building A Student Hostel : Profitability And Challenges by gtrust: 9:58pm On Jun 26, 2011 |
With 25-30million one can buy a plot of land and build & furnish 4 3bedroom apartments. Rents of approx 1million per apartment/annum means 4million and you could recoup your money in say 2years max 3years. Is this realistic or have I derailed? Hostel wahala too much! |
Re: Building A Student Hostel : Profitability And Challenges by Reflector: 10:28pm On Jun 26, 2011 |
gtrust: You would need to get a land at lekki to be able to command that kind 1m rent for a 3 bedroom flat. Lekki land would cost you up to 40m add your construction cost of 25m and your total cost would be around 65m. |
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