Grandlord:
Go read about what led to the great recession of 2008.

Muhylonaire:
I want to go into real estate... Any instructor here?

onegig:


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.

naijadrivablog:

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.

PearlStreet:


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?

onegig:


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.

GrabHisBalls:
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.

Nukilia:


Only in Nigeria, where politicians who stole the nations wealth build estates which average income earners cannot afford.

Grandlord:
Not exactly. People were getting loans/mortgages from banks to get new houses and then sell off these houses for huge profits therefore paying back juicy interests to the banks. The banks then saw this as lucrative and gave out more loans to many people.

When the supply of houses surpassed the demand, prices fell and everything crashed. The banks had to be bailed out by the government as they couldn't recover their money from those folks. This is just a simple explanation though.

GrabHisBalls:
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.

onegig:


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.

Cryomancer:


That's not true please... real estate can depreciate and turn into a bad investment overnight especially in a country like Nigeria that lacks development.

People can purchase a landed property with hope that the location will be developed, but at the end things might even get worse.


Example is Satellite Town that used to be a high brow area, but since an Oil Depot was situated there, it has suddenly become an eyesore due to the bad roads and tankers blocking every access for homeowners to enter their homes peacefully and the local government care less about it because of the money they collect from the fuel tankers. Now people are selling off their houses over there for a cheap price and house rents now have become so cheap with lots of vacant houses around, because everybody is moving out and nobody seems to be moving in.

Real estate is good but invest in it wisely, especially in this yeye country that lacks vision, projections and development.

Grandlord:
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, leading to a crash.

GrabHisBalls:
What's now the basis of this argument since you just ended up buttressing the initial point I made?

Mecoy:
The past two phases of my Civil Engineering career has found me working with two of Nigeria's top Real Estate companies.

I have planned, designed and also supervised projects. By virtue of working with the big boys of Real Estate in Nigeria, I have met and interacted with a lot of Real Estate agents and other upcoming Real Estate companies in Nigeria.

An Ongoing Real Estate Development

It is a common saying here, that Real Estate never depreciates, and I used to believe it was true, until the question was asked by one of my twitter followers, and I had to do a lot of critical analysis before answering his question.

Real Estate remains a very reliable investment, but like all other investments, there is a risk of depreciation associated with Real Estate.

Considering the first component of Real Estate: buildings, In Civil Engineering, all buildings have a design life. They are designed to last a certain number of years, usually between thirty and fifty years, depending on the budget of the owner. Consequently, as every cubic meter of concrete is poured, as every Kilogram of reinforcement is placed, the design life starts counting. Over a few months, several components starts losing value, some begin to call for repair, depreciation sets in.

If you purchase a piece of land and you have been asked to expect a certain Return on Investment, could anything possibly go wrong and reduce your ROI? Yes, a lot could go wrong!

Flooding could be an issue, as it takes a little increase in the level of adjoining land areas or an increase in the road level to get your land flooded. A bad drainage in the neighbourhood or the rechanneling of a river or some unfavourable incident at a nearby dam could get your property flooded. If you were to sell that property, no one will be willing to pay good money for it, and will definitely bargain lesser for the land. No one will even want to buy a flooded piece of land in the first, except there are no other available options.

Bad roads could also cause the value of a piece of land to depreciate. If the road(s) leading to your piece of land becomes bad, investors and prospective home owners will be discouraged and the demand for land in that neighbourhood will reduce. It is basic Economics that whenever there is low demand for any commodity, the price drops in an attempt to encourage demand.

Security could also be a major factor. If any expensive neighbourhood becomes notorious, either because of armed robbery, kidnapping, bombing or any other crime, the value of that neighbourhood will drop, and your piece of land will definitely lose its value.

Natural disasters or environmental disasters could also deal a fatal blow on your piece of land. Oil spillage, erosion, collapsed bridges, collapsed power supply structures can all lead to a fall in the value of your piece of land.

When next you intend to purchase a property, please consider the above factors, and if you are spending a lot on the piece of land, I will strongly advise that a Soil investigation and topographical investigation be carried out. It is better to be safe than to be sorry.

http://michaelakinpelu..com/2019/06/real-estate-never-depreciates-how-true.html?m=1

femeritus:


Good analysis. Please if you have such an to recommend, let me know.

Grandlord:
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.

naijadrivablog:


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

onegig:


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.

Muhylonaire:
I want to go into real estate... Any instructor here?

ctleurocollege:

Google ACT foundation

GrabHisBalls:
They don't take up loans to fund a charity cause. No do wetin your hand no reach.