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Nairaland Forum / Nairaland / General / Properties / Real Estate Never Depreciates: How True? (15325 Views)
3 Ways Your House Depreciates And Loses Value / How true? / Buy 2M Now Sell 20M In Five Years Risk Free Investment That Never Depreciates (2) (3) (4)
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Re: Real Estate Never Depreciates: How True? by Nobody: 9:52am On Nov 03, 2019 |
Grandlord:Are you referring to the Global Market Crash of 2008? The reason for that was that people were taking up mortgaged not backed by collateral and when default set in, the market crashed. |
Re: Real Estate Never Depreciates: How True? by Afiahomes(m): 9:55am On Nov 03, 2019 |
Muhylonaire:you have 1billion as capital? if yes holla me for some strategies 1 Like |
Re: Real Estate Never Depreciates: How True? by studentofTruth: 10:02am On Nov 03, 2019 |
onegig: Chief, which business/investment gives one 30-40% ROI year on year? I will like to invest in such business. Thank you. |
Re: Real Estate Never Depreciates: How True? by PearlStreet(m): 10:04am On Nov 03, 2019 |
naijadrivablog: Guy, stop telling lies. Land was never 500k in Lekki in 2005. As at 2003, I was living in Ikoyi and I knew what property prices were saying then. Lekki was never 500k, not even when they converted Maroko to Lekki. Only places like Ogombo far inside were around that price in 2005. How much is Ogombo far inside today? 2 Likes 1 Share |
Re: Real Estate Never Depreciates: How True? by naijadrivablog: 10:14am On Nov 03, 2019 |
PearlStreet: I think you need glasses. Check my original posts you quoted again. 1 Like 1 Share |
Re: Real Estate Never Depreciates: How True? by joelag: 10:17am On Nov 03, 2019 |
onegig: Eye opener... One of my friend will see this. Thank you. 4 Likes |
Re: Real Estate Never Depreciates: How True? by Grandlord: 10:29am On Nov 03, 2019 |
GrabHisBalls: 3 Likes |
Re: Real Estate Never Depreciates: How True? by jojothaiv(m): 10:54am On Nov 03, 2019 |
On a lighter note, real estate depreciates faster when you site your properties closer to a mortuary or cemetery.. 1 Like |
Re: Real Estate Never Depreciates: How True? by Donmorph1991(m): 10:59am On Nov 03, 2019 |
[quote author=naijadrivablog post=83696807] Oga, of every investment there is, real estate remains a solid investment. Your points are valid but at what percentage does real estate depreciate? Lets take flood as a disaster that could affect land appreciation, it is wise not to buy lands in a flood prone areas. If I have a land in Lekki, it would just be one or two and I shall wait for a few years and sell. Lekki is flood prone (some areas) but in 2003, a land there costs around N2m but in 2017 or so, it costs a whooping N100,000,000. In the long run, real estate beats shares/stocks/bonds, business investment etc. The rule is, never buy properties in one location only, spread the investment in several, yes you are right, contact me to invest in our estate accross lagos and ogun state
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Re: Real Estate Never Depreciates: How True? by SUCCEXIANO(f): 10:59am On Nov 03, 2019 |
Nukilia: |
Re: Real Estate Never Depreciates: How True? by Nobody: 11:04am On Nov 03, 2019 |
Grandlord:Oga, I treated Capital Market and market crashes were discussed. The major reason why the market crashed then was that those houses were not backed by the right collateral and that was why more people patronized Mortgages. It was majorly the fault of the bankers as more people patronised them and they felt they were making more profit by giving out these mortgage security. Some very greedy people were also buying on Margin Debt...you buy a security without cash/with a little cash with the hope of paying back when it's sold. In a case where this transaction exist and a crash happens, those ones are likely to commit suicide 'cause they were heavily indebted. This was a major hit in the history of America as people fell off tall city buildings. |
Re: Real Estate Never Depreciates: How True? by AntiWailer: 11:10am On Nov 03, 2019 |
Real estate is over rated and do depreciate. When we say it depreciates, that does not mean we are generalizing. Let's do a simple analysis especially if u collect a mortgage. The interest u pay can triple the value and cost of the house as u spread the payment. By the time u are done paying, u would have paid an amount the house is not worth in 15 years of ur tenor |
Re: Real Estate Never Depreciates: How True? by Grandlord: 11:13am On Nov 03, 2019 |
GrabHisBalls:Listen madam , the banks have been giving out those mortgages ever since 2006/2007 and it was super successful even without collateral, though it was risky. The main problem started when they got greedy and gave it to every Joe who wanted to opt in, thereby saturating the market, lea ding to a crash. There was more to it but I'll just leave it simple for your understanding. |
Re: Real Estate Never Depreciates: How True? by koning: 11:13am On Nov 03, 2019 |
onegig: You hit the nail right on the head. It's a horrible investment if you do not have lots of idle cash. If you put N5 million on a piece of property with the hope of recuperating the N5million in 6 to 10 years, that is a very bad investment move in my opinion. The worst are people who build block of flats to rent out. The best investment in property is to build the very house you will live in. This way you don't have to waste money that you would otherwise put in your biz paying rent. 4 Likes 1 Share |
Re: Real Estate Never Depreciates: How True? by Originalsly: 11:15am On Nov 03, 2019 |
Cryomancer: Excellent response. I didn't want to quote the whole thing... but damn... I couldn't find anything to leave out! Sooo interesting when someone put out his opinion.... and back it up.... especially adding matters on ground locally. I also do agree real estate can depreciate. More often in small towns or villages... especially if there is a major employer like a factory or mining company that shuts down.... that community begins to fall apart.... no economic activity... real estate loses value... residents move out... properties become vacant... abandoned... lose value big time. Real estate in a bustling major city is a different story. |
Re: Real Estate Never Depreciates: How True? by Nobody: 11:16am On Nov 03, 2019 |
Grandlord:What's now the basis of this argument since you just ended up buttressing the initial point I made? |
Re: Real Estate Never Depreciates: How True? by Grandlord: 11:22am On Nov 03, 2019 |
GrabHisBalls:That's what I thought about your previous reply to me as you were basically corroborating what I had said before. So I thought maybe you didn't get my point and had to explain in more simpler terms so you could understand. |
Re: Real Estate Never Depreciates: How True? by Grandlord: 11:24am On Nov 03, 2019 |
Mastermindx how are you? Any problem? |
Re: Real Estate Never Depreciates: How True? by EgunMogaji2: 11:24am On Nov 03, 2019 |
Mecoy: You’re right, real estate can depreciate. What makes real estate investment compelling is that it’s rather stable on the long term. I bought a house in a suburb of Los Angeles around 2000 for $150K, I sold it in 2006 for $550K. About a year later it was now worth $350K. I looked on Zillow last year and the value is now $650K. On the long term the buyer is still sitting on $100K equity. And he’s been getting massive tax breaks as well as residential value over the years. The biggest fraud in Nigeria are the fly by night money laundering estates that advertise non existing estates inside forests. 6 Likes |
Re: Real Estate Never Depreciates: How True? by onegig(m): 11:25am On Nov 03, 2019 |
femeritus: Honestly, I won't be here touting a biz idea. But the best biz are those you are well grounded in and know the ins and out. So I would advise you look inward and see skills you have and invest in such. If you are the type that isn't really that handy or technical then maybe the money market is a viable option. Let me give you a practical example. A friend sells some high end graphic cards. I was Looking to divest and we got orders for about 100. Margin of profit was like 30% at the end i muddled up the orders because I wasn't just really vast in such markets. I am very good at computing but the graphics card market was a bit new. Instead of ordering the small form type we ordered the tower type. Also there were better markets to order such from but we ordered from a source that was much more expensive. At the end we are battling to even break even as we had to sell at cost price not considering the stress involved. So I really can't tout any ideas. There are lots of investment opportunities out there even treasury funds . The basic is just do your due diligence and know the risks. 1 Like |
Re: Real Estate Never Depreciates: How True? by Nobody: 11:27am On Nov 03, 2019 |
Grandlord:Alright. 1 Like |
Re: Real Estate Never Depreciates: How True? by onegig(m): 11:39am On Nov 03, 2019 |
naijadrivablog: When posting we need to factor in the audience. The average Nairaland person is not worth more than 5million naira in both liquid cash and assets. Let's even drag the net wider I can say with all confidence that over 70% of Nigerian families have a combined income of less than 5million naira a year. So where is even that disposable funds to buy lands? Why do you think we have a chronic housing problem? Not like the lands and houses aren't there, the purchasing power is just non existent for the general populace. Is it someone struggling to rent a 1bd flat in Ikotun that would have the residual millions he can use to buy lands and wait for it to turn profit in 15 years? You can't even go take loans in the money market to fund such because the average loan rates and tenor are much higher than whatever profit you intend getting. Don't even get me started on building flats to rent out. The people making money in the real estate markets are the agents. You sell a land you had no single investment or capital inside and take a cut of 5% to 15%. Except those who have endless capital they buy large expense of land at a discount due to the economics of scale and sell out in bits but how many have such capital? Let's be realistic please. 5 Likes 3 Shares |
Re: Real Estate Never Depreciates: How True? by Gerrard59(m): 12:06pm On Nov 03, 2019 |
onegig: Thank you. No more buying of lands anymore. cc: Tensazangetsu20 1 Like 1 Share |
Re: Real Estate Never Depreciates: How True? by tunde82seidat(f): 12:21pm On Nov 03, 2019 |
Muhylonaire: I'm a real estate Consultant and i can guide you through the process. The most important things to look out for when looking to invest are location , title and Price .How do you verify if the property you getting is commited or freehold .Lets talk Real Estate check my signature |
Re: Real Estate Never Depreciates: How True? by airminem(f): 12:30pm On Nov 03, 2019 |
ctleurocollege:ok |
Re: Real Estate Never Depreciates: How True? by airminem(f): 12:32pm On Nov 03, 2019 |
GrabHisBalls:What next? |
Re: Real Estate Never Depreciates: How True? by TBrownAuto(m): 12:34pm On Nov 03, 2019 |
I have problems with sales representative, they always like sugar quoting thing tell you the sweet side and leave the bad side u know that god forbid thing, nothing to worry about, looooool Real estate is not as they always say look at 2003 as the Op claims how much is cost of 100 naira bread today then its 20 naira that is 400% rise in price, is not stupid if I tell you buy this bread 2003 and sell later 2019 bla bla you will make 80 naira but in real estate they make it look great for the ear and minds, during the period of that year they will never tell you how much they have spent on maintenance or how many year as lost due to rent not paid. if you do simple math in Nigeria Rent is not guarantee In Nigeria only the politician that steal money and spend on real estate make it look attractive ever wonder why half of the house on the prime area are vacant check Abuja and tell your self truth, more over you don't make more than 10 to 11% as return per year so what the fucking noise about it, even mortgage company charge same so is it worst it not sure 3 Likes |
Re: Real Estate Never Depreciates: How True? by renewable1(m): 12:40pm On Nov 03, 2019 |
True 8 HOURS ELECTRICITY DAILY FROM THE SUN.. CHECK MY SIGNATURE NOW |
Re: Real Estate Never Depreciates: How True? by tonididdy(m): 12:43pm On Nov 03, 2019 |
land may not depreciate unless for natural disaster reasons like flooding otherwise land appreciates. tye best real estate investment is hotel and guest houses because a new residential building may depreciate in "looks" over the years and the owner is forced to repaint or sell at a loss just to let the property off his hands. |
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