chigoizie7:




Aside any other thing u said. Why are we always over pricing things in nigeria?

That 3.5 million can't get a decent 3bedroom flat?

Bros, maybe u are part of the people that spends money anyhow.

I might not have built my own house, but I have handled others, believe u me, I know better. A 3bedroom double flat fit for people to live in, I know 5million did that comfortably. So, why can't 3.5 do a single flat?

erico2k2:

To your 2nd paragraph. I would say wrong cos in PH you can get N4M land and still charge that much.mine is that range

EgunMogaji:


What if you're a developer that built flats and sold them upon completion for a profit. Let's say 6 months to a year.

Isn't this short term real estate investment?

hotmas911:
Sir, there is more to building and selling blocks of flats than we know. It's just very few people that can outrightly pay for a finished house. Most developers sell on instalments. That is why you see them always making advertisements all over the media. You also have to consider how much they blow on that.

Chinom:




My reference point was Lagos. Don't know about PH. You can that kind of rent in Magodo or Ikeja, Allen/Opebi axis. But an empty land is in the range of N15 to 20M.

There are many viable ways to turn your money over quickly.

hotmas911:
Sir, there is more to building and selling blocks of flats than we know. It's just very few people that can outrightly pay for a finished house. Most developers sell on instalments. That is why you see them always making advertisements all over the media. You also have to consider how much they blow on that.

Ayloaded04:


You didn't take into consideration the fact that property investment has an hedge against inflation unlike cashew plantation. Rent won't remain stagnant and rental increments are a lot higher than that of agric produce

erico2k2:

Another wrong assumption. They developers sell to the bank who in turn sell to the end user in form of mortgage. Developers won't tie thier funds for 20 years banks can.

hotmas911:


Cc Yak
You are right, real estate is a long term business. I have seen real estate investor who went into agriculture. Simply by buying massive land and cultivating crops like cashew( also inter-cropping with short term crops) and they end up generating returns right from the first four months of investment. The advantage is that they can still use such land as collateral for other business.

EgunMogaji:


You haven't answered the question that I posed.

Please try to answer as direct as possible.

Is specifically building flats for sale a short or long term investment?

hotmas911:
to answer you sir. The process you explained can not be called investment. So I can't call it long-term or short term investment. That is not different from what manufacturers do. They buy raw materials, put them together and create a product and then sell. That can not be called investment.

yak:


am really loving this.
on d other hand, if u build a house, u can remove your eyes from it, visit once in a while. but d cashew plantation would need ur physical presence and employment of hands. I have tot abt palm plantation but I dnt av d time to giv to it cos am in a full time job

hotmas911:
Commercial property investment like residential apartments is for those who choose to play safe. It is a game for those who value security over freedom. There are better ways to invest in real estate than just building apartments for rent. But if done through a good mortgage plan it might be a good investment.
I love getting more with less. There are other real estates plans with the potential of generating invested amount as yearly return. For example you can invest 3.5 millions like the OP said and be making about 3.5 million annually from same or be making 200k like the in rental property. It's a case of thinking outside the box. Which do you want security or freedom.

hotmas911:
This is very wrong and far from the truth in fact misleading. How many Nigerian banks buy finished property from developers? It seems you don't understand how Nigeria's banking system and real estate business work. Or better still, give me list of properties sold to banks in Nigeria.

agriboom:
Not that great of an investment, you always use almost half of the rent to fix it up when ever a tenant packs out, so make your 15yrs calculation x2.

Develop and sell, that's the right way to go as far as property is concerned

hotmas911:
Commercial property investment like residential apartments is for those who choose to play safe. It is a game for those who value security over freedom. There are better ways to invest in real estate than just building apartments for rent. But if done through a good mortgage plan it might be a good investment.
I love getting more with less. There are other real estates plans with the potential of generating invested amount as yearly return. For example you can invest 3.5 millions like the OP said and be making about 3.5 million annually from same or be making 200k like the in rental property. It's a case of thinking outside the box. Which do you want security or freedom.

yak:
Fellow Nairalanders, av bn thinking this in my mind and I decided to throw it open to the public: does building a commercial house especially residential a competitive investment judging by what u spend building the apartment and what u eventually get as rent.
for example, u spend say 3.5m to build a 2bedroom Bungalow. on a rent of 200k, it wil take 15years or so to recoup meanwhile I estimated that rent may go up every 5yrs. So, lets look at it 2geda

hotmas911:
Commercial property investment like residential apartments is for those who choose to play safe. It is a game for those who value security over freedom. There are better ways to invest in real estate than just building apartments for rent. But if done through a good mortgage plan it might be a good investment.
I love getting more with less. There are other real estates plans with the potential of generating invested amount as yearly return. For example you can invest 3.5 millions like the OP said and be making about 3.5 million annually from same or be making 200k like the in rental property. It's a case of thinking outside the box. Which do you want security or freedom.

hotmas911:
Commercial property investment like residential apartments is for those ho choose to play safe. It is a game for those who value security over freedom. There are better ways to invest in real estate than just building apartments for rent. But if done through a good mortgage plan it might be a good investment.
I love getting more with less. There are other real estates plans with the potential of generating invested amount as yearly return. For example you can invest 3.5 millions like the OP said and be making about 3.5 million annually from same or be making 200k like the in rental property. It's a case of thinking outside the box. Which do you want security or freedom.

erico2k2:

I see your point. But let me also say.you forgot to put in the actual overhead cost.
Risk factor
Anxiety
Environmental factors
Buyers.
Sturdies have proven land never depriciate in Nigeria

laprince:


When you're not so financially buoyant, you can finance the weeding, staff salaries, harvesting and other activities in the farm.

Love the idea anyways.

erico2k2:

I see your point. But let me also say.you forgot to put in the actual overhead cost.
Risk factor
Anxiety
Environmental factors
Buyers.
Sturdies have proven land never depriciate in Nigeria

erico2k2:

Go to ur bank and enquire about mortgage. People seem to forget these services are for every one.you need to have some %deposit though. Wen I say Bank it dosnt mean your everyday bank. Some of these investment coy are on NL

sanerugwei:
But again olumide4Christ...
Your assumption about cost of land and rental price are not in sync.

The higher the rent you can charge, then much more higher is the cost of the land in such locality.
The cost of land in a place where you can rent up to 900K will not be less than 15Million.
Building cost in such area will also be far higher...

This is a very educative trade..keep it coming, you guys...

greatiyk4u:



This is a great professional input.
However, the word "standard bungalow" as used here is relative and varies with taste and location.
A standard "commercial bungalow" can efficiently be constructed with less than 6M except in swampy locations where raft and even pile foundations are needed.

I equally doubt if u can get a plot of land for as low as 4M in a location that rent cost bw 700k-900k not forgetting the cost of maintenance of the structure over time.

From experience,research and expertise, the break even point of building investment is a minimum of 15years.

EgunMogaji:


What if you're a developer that built flats and sold them upon completion for a profit. Let's say 6 months to a year.

Isn't this short term real estate investment?