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Nairaland Forum / Nairaland / General / Properties / Real Estate Never Depreciates: How True? (15338 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 money121(m): 7:22am On Nov 03, 2019 |
Yes |
Re: Real Estate Never Depreciates: How True? by noble71(m): 7:22am On Nov 03, 2019 |
Re: Real Estate Never Depreciates: How True? by helinues: 7:23am On Nov 03, 2019 |
MrVegina: 1 Share
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Re: Real Estate Never Depreciates: How True? by DameB(f): 7:24am On Nov 03, 2019 |
ednut1: True. I'd rather build blocks of 1bedroom flats over procuring duplex. But I feel some of these home owners on the island and Abj do it for the statusquo. Based on demand and supply well finished, properly built miniflats will always be in demand 2 Likes |
Re: Real Estate Never Depreciates: How True? by Pato5(m): 7:27am On Nov 03, 2019 |
Real estate depreciates - once u erect a structure on a piece of land, depreciation sets in. Structures age (30-50yrs shell life) -land lose value from poor government policies which includes: poor roads, sitting of pipelines or power lines, city master plan. It is not advisable to rush and invest into real estate without due diligence. From experience anyways,I would only purchase a land when I very sure I don't have a business to invest in. Real estate is somewhat grossly overated. 3 Likes |
Re: Real Estate Never Depreciates: How True? by onegig(m): 7:34am On Nov 03, 2019 |
naijadrivablog: You guys just come online and post half truths and whatnot. Please show me one single advert from 2005 where a plot of Land in Lekki 1 or 2 was 500k. Yeah , real estate might bring you profits but for all its so called ROIs it's capital intensive and except you are doing large scale purchases which is out of the reach of the average Joe on the street, you are just wasting your time. A plot of land in Ibeshe Ikorodu was generally sold for N250k in 2006/2007 . The minimum wage as at then was N13,000 and NYSC corpers were being paid 9500 or so. Petrol was N35 or N45 as at then, now it's hovering around N150. Inflation was at 18% as of January 2007. After all said and done as at today, that same land can't fetch you more than 2Million in the same Ibeshe Ikorodu. That's a paltry 600% return on investment after 12years. If you factor in inflation rates and CPI you would understand the profit margin isn't more than 10% . That's fucking outrageous for a long term capital intensive investment. If i had a residual income of ONLY 250k as at 2007 to invest,I am sure i wouldn't be receiving 2million as a worthy return after 12 years. So you guys should stop touting lands and houses as an eldorado investment option. If you had so much residual income laying fallow you can go tie it up buying landed properties as an hedge against inflation but if you have limited capital and have a viable biz that gives you 30% to 40% returns on investment year on year please plough such funds into the biz. You would be better off. 32 Likes 5 Shares |
Re: Real Estate Never Depreciates: How True? by Systrom(m): 7:36am On Nov 03, 2019 |
Mecoy:Interesting! |
Re: Real Estate Never Depreciates: How True? by naijadrivablog: 7:39am On Nov 03, 2019 |
onegig: My friend, google is your friend. Mind you, I have real estate background. No one uses all his funds to buy land. Your regular income source(s) has to be going while you invest in real estate to get residual income. All investment has level of risks. https://www.google.com/url?q=https://landforsaleinlagos.com/best-place-location-to-buy-a-land-in-lagos-where-do-i-invest/&sa=U&ved=2ahUKEwjH-ZPWts3lAhVHiFwKHVL7CUwQFjAGegQIBBAB&usg=AOvVaw3GIoq2S0K7Jdmb3Fr48maM 2 Likes |
Re: Real Estate Never Depreciates: How True? by chinchonglee(m): 7:39am On Nov 03, 2019 |
Cryomancer:U re nt serious on dis!! Come nd see the price of houses nd rents in this new site. U go run |
Re: Real Estate Never Depreciates: How True? by chinchonglee(m): 7:40am On Nov 03, 2019 |
onegig:Nice one bro! 1 Like |
Re: Real Estate Never Depreciates: How True? by Detour00: 7:45am On Nov 03, 2019 |
Recession affects everything. helinues: |
Re: Real Estate Never Depreciates: How True? by femeritus: 7:46am On Nov 03, 2019 |
[Well said. Do you have such an investment you can recommend? quote author=onegig post=83697676] You guys just come online and post half truths and whatnot. Please show me one single advert from 2005 where a plot of Land in Lekki 1 or 2 was 500k. Yeah , real estate might bring you profits but for all its so called ROIs it's capital intensive and except you are doing large scale purchases which is out of the reach of the average Joe on the street, you are just wasting your time. A plot of land in Ibeshe Ikorodu was generally sold for N250k in 2006/2007 . The minimum wage as at then was N13,000 and NYSC corpers were being paid 9500 or so. Petrol was N35 or N45 as at then, now it's hovering around N150. Inflation was at 18% as of January 2007. After all said and done as at today, that same land can't fetch you more than 2Million in the same Ibeshe Ikorodu. That's a paltry 600% return on investment after 12years. If you factor in inflation rates and CPI you would understand the profit margin isn't more than 10% . That's fucking outrageous for a long term capital intensive investment. If i had a residual income of ONLY 250k as at 2007 to invest,I am sure i wouldn't be receiving 2million as a worthy return after 12 years. So you guys should stop touting lands and houses as an eldorado investment option. If you had so much residual income laying fallow you can go tie it up buying landed properties as an hedge against inflation but if you have limited capital and have a viable biz that gives you 30% to 40% returns on investment year on year please plough such funds into the biz. You would be better off. [/quote] |
Re: Real Estate Never Depreciates: How True? by femeritus: 7:48am On Nov 03, 2019 |
quote author=onegig post=83697676] You guys just come online and post half truths and whatnot. Please show me one single advert from 2005 where a plot of Land in Lekki 1 or 2 was 500k. Yeah , real estate might bring you profits but for all its so called ROIs it's capital intensive and except you are doing large scale purchases which is out of the reach of the average Joe on the street, you are just wasting your time. A plot of land in Ibeshe Ikorodu was generally sold for N250k in 2006/2007 . The minimum wage as at then was N13,000 and NYSC corpers were being paid 9500 or so. Petrol was N35 or N45 as at then, now it's hovering around N150. Inflation was at 18% as of January 2007. After all said and done as at today, that same land can't fetch you more than 2Million in the same Ibeshe Ikorodu. That's a paltry 600% return on investment after 12years. If you factor in inflation rates and CPI you would understand the profit margin isn't more than 10% . That's fucking outrageous for a long term capital intensive investment. If i had a residual income of ONLY 250k as at 2007 to invest,I am sure i wouldn't be receiving 2million as a worthy return after 12 years. So you guys should stop touting lands and houses as an eldorado investment option. If you had so much residual income laying fallow you can go tie it up buying landed properties as an hedge against inflation but if you have limited capital and have a viable biz that gives you 30% to 40% returns on investment year on year please plough such funds into the biz. You would be better off. [/quote] Good analysis. Please if you have such an to recommend, let me know. |
Re: Real Estate Never Depreciates: How True? by ctleurocollege: 7:48am On Nov 03, 2019 |
False |
Re: Real Estate Never Depreciates: How True? by Gazzy88(m): 7:49am On Nov 03, 2019 |
Flood Govt policy Natural apocalypse Bad infrastructure Insecurity These could factor in huge loss in real estate. Every business have its own bad days |
Re: Real Estate Never Depreciates: How True? by ctleurocollege: 7:49am On Nov 03, 2019 |
airminem: Google ACT foundation |
Re: Real Estate Never Depreciates: How True? by ambient: 7:50am On Nov 03, 2019 |
It sometimes depreciate,i have been trying to sell off my property in portharcourt nice house in a well tarred neighborhood and people are pricing nonsense, so angry about that investment. 5 Likes |
Re: Real Estate Never Depreciates: How True? by smile11s(m): 8:01am On Nov 03, 2019 |
It’s all about location. If a location depreciates, then the entire real estate in that location will depreciate. 3 Likes |
Re: Real Estate Never Depreciates: How True? by Grupo(m): 8:10am On Nov 03, 2019 |
Jimi24: This is how you know someone with real life experience. Most people here are just shouting real estate appreciates. Well, they don't know what's going on. 6 Likes |
Re: Real Estate Never Depreciates: How True? by Grandlord: 8:12am On Nov 03, 2019 |
Go read about what led to the great recession of 2008. 1 Like |
Re: Real Estate Never Depreciates: How True? by pocohantas(f): 8:15am On Nov 03, 2019 |
Cryomancer: Exact example I wanted to give. There is also somewhere my dad built back in the days. At a point it became target for robberies. Of course people started moving out and I remember he had to crash the price of rent. Sometimes they won't even pay on time. But it is back to life again sha 1 Like |
Re: Real Estate Never Depreciates: How True? by Laxy009(m): 8:15am On Nov 03, 2019 |
Real estate or building doesn’t not depreciate but it can be impaired. A real estate investment can suffer impairment by which the fair value of the same asset has reduce in the market as a result of many factors both. XYZ building was purchased 40 million years ago but currently sold at 20million this might arise as a change in taste or consistent flooding or obsolescence or as a result of war or political unrest where the asset is situated . This are few factors that will contribute to the impairment of such investment. I hope this help . 1 Like |
Re: Real Estate Never Depreciates: How True? by Nobody: 8:33am On Nov 03, 2019 |
helinues:This is a lie. What brought about the global financial meltdown in 2008/2009. You know nothing nothing about real estate bro. 1 Like |
Re: Real Estate Never Depreciates: How True? by Afiahomes(m): 8:33am On Nov 03, 2019 |
Gold....if you know 1 Like |
Re: Real Estate Never Depreciates: How True? by boghetto: 8:46am On Nov 03, 2019 |
Cryomancer: You’ve said it all bro... that place has become a nightmare for landlords and tenants are moving out everyday. The road, the tankers and the electricity situation. Everywhere you look is a To let or For Sale sign. 1 Like |
Re: Real Estate Never Depreciates: How True? by 400billionman: 8:49am On Nov 03, 2019 |
Real Estate money comes when you don't expect it. But if you are dependent on rent for daily expenses, hunger may be your neighbor. 2 Likes |
Re: Real Estate Never Depreciates: How True? by 400billionman: 8:51am On Nov 03, 2019 |
Muhylonaire: Yes |
Re: Real Estate Never Depreciates: How True? by chukslawrence(m): 9:38am On Nov 03, 2019 |
Muhylonaire:Read Donald Trump and Robert Kiyosaki’s books. 1 Like |
Re: Real Estate Never Depreciates: How True? by Nobody: 9:43am On Nov 03, 2019 |
airminem:They don't take up loans to fund a charity cause. No do wetin your hand no reach. 5 Likes |
Re: Real Estate Never Depreciates: How True? by Sachiopropty(m): 9:45am On Nov 03, 2019 |
Transcorp Building Intact, The Building Beside It Was The One Affected / Classic Building Design / Best Wall Screeding Material (JK WALL PUTTY)
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