The Business And Profitability Of Rental Properties - Properties (4) - Nairaland
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| Re: The Business And Profitability Of Rental Properties by spyder880(m): 6:55pm On Jul 27, 2011 |
^^ Oga, you mean the analysis for blocks of flats? |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 7:21pm On Jul 27, 2011 |
spyder880: Yes oh, the analysis of the block of apartments, i would prefer something like block of 16 flats with 4 on each floor . . . . |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 2:47am On Jul 28, 2011 |
Oga Spyder . . . i need me some bush meat oh . . . .but not the snake sha |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 6:56am On Jul 28, 2011 |
Oga fhemmmy, request noted, and you know the bush meat parcel though courier is possible. One day I will find out what the cost will be. |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 2:05pm On Jul 28, 2011 |
spyder880: You are the man |
| Re: The Business And Profitability Of Rental Properties by jerryben12: 3:41pm On Jul 28, 2011 |
I just came across this exposition coming up in 2012. It is the 'international builders show'. For those of you interested in property business, it may be one to stay tuned to, Registeration will start on September 1. http://www.buildersshow.com/Home/Page.aspx?genericContentID=151308 |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 4:39pm On Jul 28, 2011 |
blank: My big sister,, yess, no be only u try. u got it, Kudoos, abie u learn spanish after work??, na joke a dey,  .Costa2000: Asi es, no es facil , tampoco digamos que es dificil, como siempere digo yo, las mejores cosas de la vida toman su tiempo. y tu queeeeeeeeeee??. que hay de el viejo contiente  ?leo que las cosa alli ya se vuelve más dificíl que antes.@ all, pls i dont want to turn this thread to spanish lang, just the fun of it oooo.  B4 someone go shout on top of my head.ooooo |
| Re: The Business And Profitability Of Rental Properties by ojubi(m): 6:27pm On Jul 28, 2011 |
@ spider thank u very much u re the savior i ve been looking for. i ve already printed out all your write ups cos for me it is a text book to my real estate career. pls i am already into real estate with interest on hostel apartment. i ve 3 questions for u. A How much can i ve a plot of land at enugu? preferably close to a university campus? B How much will it cost to build a 5 room self contain hostel appartment, from start to finish? C Can u pls recomen some books on real estate development for me by nigerian authors, and possibly where to get them as i currently depend on american written books? once again thank u so much as i am awaiting your reply. i live in porthacourt |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 8:19pm On Jul 28, 2011 |
ojubi: Thanks for the interest, A. in Enugu town, N7.5M-N10M, In Agbani , N1.5m-N2m B. Do you want all the room on the ground? C.True, Nigerians dont write too much, but I am discussing with a publisher to do a book on real estate investing with a Nigerian perspective. Just save your money till my book is ready (joking) |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 8:55pm On Jul 28, 2011 |
@sypder880, what are the income of a civil servant in your location? what is the minimum lent can a student afford without fighting.? 1 Like |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 8:59pm On Jul 28, 2011 |
rastaman20: Good one |
| Re: The Business And Profitability Of Rental Properties by Natudu: 6:39am On Jul 29, 2011 |
From my experience, landlords and students don't fight over rent payment. It is simply pay and pack in. You rarely have to fight to get your money. Infact they pay before the rent expires because there are usually many more on the list waiting to pay and pack in. I paid 100k per annum + 10k agency fee for a room(aka self contained) along New heaven for an ESUT student. Place is not even that close to the school and that was in 2006! |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 9:34am On Jul 29, 2011 |
Talking about the income of civil servants, Enugu has some heavy companies that can afford to pay an average of 250k per flat without sweat. Enugu has some companies like Nigerian breweries, Coca Cola, 7up, PZ, etc. But its not those people that bring the most rental incomes, due to the rowdiness of Onitsha and its market surroundings, due to the insecurity of Aba and some other eastern towns, business men now shift their wife and kids to Enugu and rent houses for them while the men continue to run their business and rreturn to see their family on weekends. Enugu also leads in schools in the east, from nursery to primary to high schools to universities, we have the best, the list includes Pine crest schools Mea Mather international schools and other high quality schools. We have more than 6 good higher institutions like University of Nigeria, Enugu campus ESUT Enugu IMT Enugu Osisatech Bishop Okoye memorial university Renaissance university, etc Students do pay well for their hostels, especially the female students. Their parents (and sometimes boyfriends) can pay top naira to maintain their safety and convenience. I have seen hostels where students pay as much as 120k for a year and there is no vacancy. In Agbani, students hostels go for as high as 70k-100k depending on how close it is to campus. |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 2:35pm On Jul 29, 2011 |
Learningggggggggggggggg |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 4:27pm On Jul 29, 2011 |
Thanks for those Informations. Learning alot |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 4:50pm On Jul 29, 2011 |
And for those that had called me and complained that they may not like Enugu because it may be too quiet and uninspiring for them. Now consider this. How can a city which has 7 higher institutions with a female population constituting 70% of the school population be quiet? How can you contain those ladies from flooding the joints at night? The answer, a bubbling night life in our busy after hours joints. Ever been to villa Toscana at night? Ever been to 8 hours at Otigba junction? Bros, leave market for market women! And the shopping? Oh! I forgot to take pictures of our shoprite branch slated to be opened within the year, covering an expance of land 2km x2km at the city centre of GRA, or the roads that are now as smooth as silk, what about the neat taxis and the smooth flowing roads, we are not even talking of the fine hotels (more than 100 respectable hotels) and yet you could search for hours and not get a room due to numerous customers especially when those rich Onitsha traders flock in during the weekend. Enugu rockckcks my people! |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 6:11pm On Jul 29, 2011 |
^^^ Lol at the ladies population of 70% . . . how will all those women get a husband, that means one man in that place will have to marry 3 women oh . . . . . |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 7:26pm On Jul 29, 2011 |
^^^ The men are there, in their shops and business areas looking for money, trust my igbo brothers to marry a graduate with their first school leaving certificates,lol but those girls are not complaining, there is money aplenty. OMMATA boys I hail o! |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 7:46pm On Jul 29, 2011 |
spyder880: But they are only marrying one now, so what would happen to the remain 40% of the ladies that are yet to be taken, who go come help them now? Now i see why the city is bubbling, cos 40% of the babes are on the street and no one to ground them, Enugu . . . I hail oh |
| Re: The Business And Profitability Of Rental Properties by Natudu: 7:37am On Jul 30, 2011 |
But jokes apart, Enugu has changed for the better. Try hanging out in this town any night with small change in your pocket. That is what i call value for money. And guys, the streets are neat enough. Roads are pliable. Taxis plenty. Hotels affordable. And like my more ''learned'' contributors opinied, ''umu asa'' full ground. What else do you want in a city? Tell me! |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 5:44pm On Jul 30, 2011 |
So from what i have learnt so far,, from my own consent. Hostel is more rentable in Enugu? Applying all those cons and dons. |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 6:50pm On Jul 30, 2011 |
^^^ @ bros rastaman, Enugu rents any space, rooms, hostel, flats, duplexes and bungalows are all in demand. Just look around Enugu and see opportunities. I would have done the work on industrial complexes in Enugu, we would have explored the Emene industrial complex, the 9th mile industrial layout and others. I will do that later. But I will open another thread today, the topic remains a secret. |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 7:16pm On Jul 30, 2011 |
^^^ I am shocked to hear this, but that is a good news, that means while the govt is busy stealing, people are busy creating opportunities for themselves |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 6:07pm On Aug 01, 2011 |
@spyder880. i am intrested on that project, .Maybe we can build together for the upwardness of the youth of Niaja. How did u see that match. I Enjoy it alot until i lost my voice. |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 6:22pm On Aug 01, 2011 |
I am just still waiting on analysis |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 8:22pm On Aug 01, 2011 |
lol for Enugu Soil |
| Re: The Business And Profitability Of Rental Properties by Fhemmmy: 8:56pm On Aug 01, 2011 |
rastaman20: Not at all, on investment and profit analysis of building like a block of 16 flats and prefers something with 4 apartments on each floor with 4 floors I a, not too picky of the combo, meaning could be 2 - 3 bedrooms and 2 - 2bedrooms on each floor, i am just concerned about what will rent out easily. Not sure if still like that in Lagos, i remember when you used to build and before you build to a certain stage, you have people that wanna rent already that would pay the 3 years rent . . . . is that still same in lagos? and is it same for Enugu? |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 9:41pm On Aug 01, 2011 |
None now applied, gone are those days when rentages are paid up to those stages. Now u can hardly get a tenant that can pay you above a year and half. but ur plans are ok ,looking at what is happing now in estate management. According to what have been learnt so far, location is the best when investing, but the cost to build in a very given location whereby you can get back what you invested in a short period of time maybe to high to build thereby living the project half way before sourcing for funds to complet the project in a due time. Only if you hires a QS so that the amount envolved in this type of project is evaluated and the fund is avaliable to embark in such a project.(Lagos as an example) Or the other way round is to buy in a location where the land are cheaper so that u can still achieves thesame propose but collecting back what you have invested may take a longer time. (Enugu as an example). Kudos to all ,, still learning |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 9:48pm On Aug 01, 2011 |
@ Rastaman, Enugu houses are still renting fast. I don't know any house where there is a long vacancy now. People are still searching for houses as Enugu expands. I will still do the maths on this topic comprehensively. Hope to spare the time within the week. |
| Re: The Business And Profitability Of Rental Properties by rastaman20(m): 10:09pm On Aug 01, 2011 |
spyder880: Pls do it , becuase your student and investos are expecting from you alot. You are the Master. Cos this is what this thread is meant for,  |
| Re: The Business And Profitability Of Rental Properties by spyder880(m): 12:43am On Aug 02, 2011 |
Fhemmmy: I got the drift, and I think it will fly. What you will need is a plot of land 100 ft x 100 ft and erect two gates at the extreme ends of it, using 12 ft for each gate, these gates will form a path to the car parks of the house with the cars coming in and parking behind each other. This could park 12 cars in the compound 6 on either side of the house. Then we have 76 foot to play with in the width of the house. We can then design a good 4 flats on each floor with 2 or 3 bedrooms on each floor. The length of this house could be 80 ft so we can get 10ft space in front of the house and 10ft behind where we shall sink the soak away pit. This type of house is not good in the interiors so you need to buy a land in an area which will attract the right type of professionals to rent the units. Young bankers, lawyers, doctors and engineers will love to live in these houses but the land will not come cheap, for that location and size of plot, look at N12m as cost of land. To build this house, a lot of care should be taken to ensure all safety precautions are taken into account as these 3 floors will require a solid foundation with 3 pillars of 4 16mm iron rods must be initiated from the foundation and run for the next two floors at least. (attached picture shows what I have in mind for the pillars) This house will not be cheap to build as it could cost up to N50M to build with standard finishing. These types of units rent for an average of 200k if its a 2 bedroom and more for a 3 bedroom. The style of finish will surely add some bargaining power to the landlord as he can demand for higher rent. But if our calculation for doing this house with N50m is right, then it will now mean that- 12m to buy land 50m to build the house including fence and gates 12m + 50m = 62m 200k as rent x 16 units = N3.2m as yearly rent. Now divide 62m by 3.2m and you get 19.375 PE ratio (if am correct, my math is a bit rusty) This will mean that it will take this investor like 19.3 years to break even with this investment. CONCLUSION The idea is cool and the house will be an edifice, this is a solid investment but not the best offer in the market. I will rather build and rent face me I face you if it will bring down my PE ratio to 8 or something lower than to bear the "big landlord" stamp and tie my money up for 19 years Comments are welcome.
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| Re: The Business And Profitability Of Rental Properties by spyder880(m): 1:21am On Aug 02, 2011 |
I want you all to note the basis of my calculations, I am working with these set of assumptions, 1. That 50m can only finish the 2 bedroom units 2. That it could cost some 10m more to make it 3 bedrooms on all the floors 3. That the 3 bedroom units can only attract about 220k per annum because of that "crowd effect" which some renters hate. If there only 4 flats in a compound, renters tend to pay more, (remember the "comot motor make I pass" disturbances.) 4. That the extra 20k which an additional room could add to the equation in form of rents may not make any positive difference to the calculations. I will work on the students hostel maths when time allows me. |
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