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Nairaland Forum / Nairaland / General / Properties / Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. (27981 Views)
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by petikal(m): 3:59pm On Feb 21, 2015 |
spyder880:That's cheap man; just 4mil/yr at full capacity, and one still has to factor in maintenance costs. How much do you figure it'll cost in total to complete the property? |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Empiree: 3:23am On Feb 22, 2015 |
petikal:Na, i beg to disagree with you. Price may increase later. That's called business strategy |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Oguledoen: 8:35am On Feb 23, 2015 |
petikal: Who said 4 million a year is small money?remember this is 4 million a year for the rest of your life....wow that is solid by all standards. The key question is this, if you did not build the house what would you have used that money for?cars, holidays?..??. 3 Likes 1 Share |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Rapidx: 1:36pm On Feb 23, 2015 |
petikal:Even at that, how did you arrive at 4million per year? 250,000x8 flats should be 2 million naira per year or am i missing something? 1 Like |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Deltagiant: 1:50pm On Feb 23, 2015 |
Rapidx: It is still profitable but may be it'll take sometime to have the return on investment. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by petikal(m): 4:03pm On Feb 23, 2015 |
Oguledoen:It depends on the initial investment - total cost of the building and maintenance (something that isn't strictly enforced in Nigeria). I actually miscalculated, it is 2mil. There are other safe investment instruments (e.g. T-Bills) that'll yield far higher than 2mil/yr with the presumed cost of that house and land. Rapidx: Even at that, how did you arrive at 4million per year?Yes, you're right, I calculated based on 16flats, not 8. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Onuokwu: 6:51pm On Feb 23, 2015 |
petikal: Rapidx: No matter what part of the country you invest in...annual yield on residential rental real estate ranges from 5% - 7%. Even if it is very good i.e. an outlier for say a luxury property, it is unlikely to exceed 10%. This is below the yield on government T-Bills and it is unlikely to ever catch up with it. I have not even factored in the cost of misuse of the property by tenants and need to repair before new tenants move in. My personal opinion is that the market for real estate is more attractive in the "build to sell segment" which itself is severely limited by the underdeveloped mortgage market. The underdeveloped market also limits the cash flow potentials that one can leverage on to escape the tyrannical yield on rental property. In view of all these, is it worthwhile to do residential rental real estate in Nigeria? My take away from observing the industry is that It may be. Especially for business men. They use this real estate as collateral to unlock monies from banks via loan and plough this into their other business (trading or manufacturing). Incidentally, it turns out that real estate, as long as it has good title, is one sure collateral the banks accept without too much grammar. Again, this benefit cannot be enjoyed by business men in every state, especially, Anambra, where successive governments have not been too enthusiastic about signing the "almighty" C of O or giving government consent to transfer title from one holder to another. There in lies the need for proper land reforms in the country. Don't mind me folks...just random musings and ranting. Do not undertake any real estate investment (buying or selling) based on above as it is not meant to be an investment advisory. 5 Likes |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by petikal(m): 8:10pm On Feb 23, 2015 |
Onuokwu: That was my line of thought. Real Estate investment has plenty of advantages. Besides the annual yield, properties appreciate in value if maintained properly and surrounding area develops. My guess is that this building (and land) cost at least N50mil. Put that in T-Bill for 1yr at 15%, and you're looking at close to N8mil true yield - stress free. I'm curious to know the owner's reasoning in having such cheap rent of N2mil/yr at full capacity. Perhaps @spyder880 can shed more light on it? |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Rapidx: 9:12pm On Feb 23, 2015 |
Onuokwu: Thank you very much. I have actually began to take a critical look at the real sector and the essence of it all. The underdeveloped mortgage financing, as you rightly pointed out, has impacted negatively in the sector. One is then left with the option of either building for rent within the percentages you stated above or to seek a bank loan - if you're lucky to have the property in a state where obtaining government title is less an issue. In view of all these, a very dynamic business person might not want to tie down his funds to invest in a rental property that will take say 15 years or more to recoup his initial capital inflow. Worst case scenario, what is your take on a 40 million naira fixed deposit compared to the yearly rental income from a block of flats (cost of land included) at 40 million naira at say Enugu? |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 12:24pm On Mar 07, 2015 |
First tenant just paid for one flat in this house..... work ongoing to complete works on the flat chosen. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by twinskenny(m): 1:18pm On Mar 07, 2015 |
petikal: you have to think of how many people who can afford that remember its not lagos abuja or PH |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by twinskenny(m): 1:21pm On Mar 07, 2015 |
spyder880: you work is always different and special |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:44pm On Mar 07, 2015 |
twinskenny: Thank you bros, if this year runs to an end and we don't work together to complete a site, I won't be very happy. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by twinskenny(m): 4:16pm On Mar 07, 2015 |
spyder880: me too ooo lol i really want us to do something together. i believe it will happen soon 1 Like |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:14pm On Mar 18, 2015 |
We are working on the soakaway system of this house today, more pictures later.
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:54pm On Mar 18, 2015 |
We are considering these types of handrails and balustrades. ....
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:57pm On Mar 18, 2015 |
Or these.....
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 4:00pm On Mar 18, 2015 |
The way the house looks now 1 Like
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 4:01pm On Mar 18, 2015 |
From the street. ...
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by mufutau55(m): 4:56pm On Mar 18, 2015 |
spyder880: NICE!!! 2 Likes |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Oguledoen: 1:28pm On Mar 21, 2015 |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Oguledoen: 1:29pm On Mar 21, 2015 |
spyder880: Please can I have an itemised break down of your decking cost / expense for material and labour. Abeg |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Oguledoen: 1:31pm On Mar 21, 2015 |
spyder880: Please can I have an itemised break down of your decking cost / expense for material and labour. Abeg |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Ezemistic: 4:27pm On Mar 21, 2015 |
spyder, i just hope u can come to Abuja to build for me. I really want you to handle the project from start to finish.. Give it a second thought, I will appreciate if you can. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 5:10pm On Mar 22, 2015 |
Ezemistic: I am planning to build in Abuja next month, 6 flats of 3 bedrooms luxury finishing. 1 Like |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:42pm On Mar 24, 2015 |
I am currently shopping for more tiles for this house, bathroom walls.
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:44pm On Mar 24, 2015 |
Bathroom floors. ......
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:45pm On Mar 24, 2015 |
The handrails already produced and delivered. ......
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 3:48pm On Mar 24, 2015 |
Two of these flats has been paid for even without full completion. We are using the tenants money to pay for materials and labour. More tenants asking to pay tomorrow. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by Empiree: 5:46am On Mar 25, 2015 |
^they want to make history, i guess. |
Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by spyder880(m): 1:21pm On Mar 25, 2015 |
We are still working on this soakaway system today.
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Re: Building A Block Of 8 Flats Of 2 Bedrooms In Enugu. by dgitrader(m): 2:46pm On Mar 25, 2015 |
spyder880: what are the reasons why you chose whole blocks over the hollow types? nice work, kudos to you |
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