I know many of you will think that I don't know what I'm saying as I've said it before but coming across this gentleman's video reignited me to bring up this issue again as many are currently stranded in the middle of a project because they couldn't complete it.

Another fact is that many people are pressures into building a house when they truly have no plan for such but they do so because everyone is doing it.

Make we just watch this guy talk and let's jam for the comment session.


https://www.youtube.com/watch?v=mupzJp5wdBE

What are you saying?

You are a landlord of a duplex in VGC or Banana Island in Lagos and go and rent a room in Gbagada or Shomolu?

A lot of mentally unbalanced folks on this forum.

True in some way false in another

MrBroke:
True in some way false in another

You're right.

leroi01:
A lot of mentally unbalanced folks on this forum.

You won't admit you're one of them until you admit your brokeness, take this👨‍🔧

saintopus:
What are you saying?

You are a landlord of a duplex in VGC or Banana Island in Lagos and go and rent a room in Gbagada or Shomolu?

You cannot see the wider scope. VGC in BI is not always the first building of those people and some of these people had inherited asset. Small money first enter your hand, you dey think of duplex in VGC?

sholay4star:


You cannot see the wider scope. VGC in BI is not always the first building of those people and some of these people had inherited asset. Small money first enter your hand, you dey think of duplex in VGC?

Based on your topic Sir

The guy is right. Most people don't understand how money works. I can never build a house for rentage, instead I will build a very spacious and well decorated event centre.

From the above, let's say total cost for both is 40 million naira...
house is 4 block of 3 bedroom flat.

House rent on the average is 500k yearly using the standard in my area totalling a sum of 2million naira on annual rent...

Event centre charges between 250k to 400k depending on spacing and beautification...let say out of 52 weeks a year, you get patronage for for 30 weeks.. that is 300k average multiplied by 30 weeks...9 million naira annually....

Building depreciate over the years, as building is not an appreciable asset...wear and tear will still be deducted incase you are renovating the house for new tenants...

In both cases, the land is the only appreciable asset not the structure on the land....

The event centre has minimal wear and tear because it's just a big auditorium...not much interior designs...

So the event centre Is more profitable and sensible

Another money scenario (real life)

Mr A and B got retired around 2006 with a gratuity of 35 million naira each...

Mr A used the privilege in obtaining petrol and gas station permit franchise with conoil in looking real life matters

Mr B built 10 blocks of 3 bedroom flats in lekki...

From the above matter, the rate of turnover of the oil and gas sold will determine the profit made by Mr A, while Mr B profit is fixed for the year..

I can even build ashawo quarters of like 40 rooms with 3k daily returns on each room in same lekki...40x3k is 120k daily x 25 days is 3million naira monthly x 12 is 36 million...meanwhile normal house will never give you 36 million naira yearly...

Money that is meant to start a mini factory will be used in building big houses that will end up being locked up because nobody is staying there.. all over Abuja, you will see them even in south east...

let me tell you all a real truth..money generated over the useful life of the building can never be the same as the amount of money spent in building that same structure in most cases because inflation will eat deep into the rent, you can only meet at equilibrium or a bit above equilibrium except in few exempted areas like lekki etc...

sholay4star:

You won't admit you're one of them until you admit your brokeness, take this👨‍🔧

Your response proves my point.

Visit a psychiatrist and while you are at it, stop trying to scam people of their hard earned money

leroi01:


Your response proves my point.

Visit a psychiatrist and while you are at it, [s]stop trying to scam people of their hard earned money[/s]

At least you're sick enough not to understand the discussion under context else the quoted.

josielewa:
Another money scenario (real life)

Mr A and B got retired around 2006 with a gratuity of 35 million naira each...

Mr A used the privilege in obtaining petrol and gas station permit franchise with conoil in looking real life matters

Mr B built 10 blocks of 3 bedroom flats in lekki...

From the above matter, the rate of turnover of the oil and gas sold will determine the profit made by Mr A, while Mr B profit is fixed for the year..

I can even build ashawo quarters of like 40 rooms with 3k daily returns on each room in same lekki...40x3k is 120k daily x 25 days is 3million naira monthly x 12 is 36 million...meanwhile normal house will never give you 36 million naira yearly...

Money that is meant to start a mini factory will be used in building big houses that will end up being locked up because nobody is staying there.. all over Abuja, you will see them even in south east...

let me tell you all a real truth..money generated over the useful life of the building can never be the same as the amount of money spent in building that same structure in most cases because inflation will eat deep into the rent, you can only meet at equilibrium or a bit above equilibrium except in few exempted areas like lekki etc...

Oil dey your head bro.

Yeah true.bt thats if u dnt hav a stable income.i hav a house n still hav stable income to further invest so no lele

josielewa:
Another money scenario (real life)

Mr A and B got retired around 2006 with a gratuity of 35 million naira each...

Mr A used the privilege in obtaining petrol and gas station permit franchise with conoil in looking real life matters

Mr B built 10 blocks of 3 bedroom flats in lekki...

From the above matter, the rate of turnover of the oil and gas sold will determine the profit made by Mr A, while Mr B profit is fixed for the year..

I can even build ashawo quarters of like 40 rooms with 3k daily returns on each room in same lekki...40x3k is 120k daily x 25 days is 3million naira monthly x 12 is 36 million...meanwhile normal house will never give you 36 million naira yearly...

Money that is meant to start a mini factory will be used in building big houses that will end up being locked up because nobody is staying there.. all over Abuja, you will see them even in south east...

let me tell you all a real truth..money generated over the useful life of the building can never be the same as the amount of money spent in building that same structure in most cases because inflation will eat deep into the rent, you can only meet at equilibrium or a bit above equilibrium except in few exempted areas like lekki etc...

the 36m is projected gross income! You pay of generator,ekcttricty , employee, maintenance,police, and other associated cost then their are days ashawo will not pay or hotel scanty. There are low patronage time .with all this expenses you might end up with only 6m annually.

josielewa:
Another money scenario (real life)

Mr A and B got retired around 2006 with a gratuity of 35 million naira each...

Mr A used the privilege in obtaining petrol and gas station permit franchise with conoil in looking real life matters

Mr B built 10 blocks of 3 bedroom flats in lekki...

From the above matter, the rate of turnover of the oil and gas sold will determine the profit made by Mr A, while Mr B profit is fixed for the year..

I can even build ashawo quarters of like 40 rooms with 3k daily returns on each room in same lekki...40x3k is 120k daily x 25 days is 3million naira monthly x 12 is 36 million...meanwhile normal house will never give you 36 million naira yearly...

Money that is meant to start a mini factory will be used in building big houses that will end up being locked up because nobody is staying there.. all over Abuja, you will see them even in south east...
omg
let me tell you all a real truth..money generated over the useful life of the building can never be the same as the amount of money spent in building that same structure in most cases because inflation will eat deep into the rent, you can only meet at equilibrium or a bit above equilibrium except in few exempted areas like lekki etc...

Each investment class has its own merits and demerits...

Bizness can collapse as a result of so many factors....
Ranging from govt regulation, unfavorable biz environs etc...
Despite the rate of t/o and profit...

Building gives you a yearly income that you can plough into other ventures...
A year rent of N36m can be used to start a bizness and stabilize a bizness over a period of time...

Balance is the key...Have some estate and have a bizness...

josielewa:
Another money scenario (real life)

Mr A and B got retired around 2006 with a gratuity of 35 million naira each...

Mr A used the privilege in obtaining petrol and gas station permit franchise with conoil in looking real life matters

Mr B built 10 blocks of 3 bedroom flats in lekki...

From the above matter, the rate of turnover of the oil and gas sold will determine the profit made by Mr A, while Mr B profit is fixed for the year..

I can even build ashawo quarters of like 40 rooms with 3k daily returns on each room in same lekki...40x3k is 120k daily x 25 days is 3million naira monthly x 12 is 36 million...meanwhile normal house will never give you 36 million naira yearly...

Money that is meant to start a mini factory will be used in building big houses that will end up being locked up because nobody is staying there.. all over Abuja, you will see them even in south east...

let me tell you all a real truth..money generated over the useful life of the building can never be the same as the amount of money spent in building that same structure in most cases because inflation will eat deep into the rent, you can only meet at equilibrium or a bit above equilibrium except in few exempted areas like lekki etc...

You made a lot of sense.