Sholapey:
The seller sent a picture and video of the four units of three bedrooms property sitting on almost 1.1/2 plot of land. Current rent value is 2m.

...max is 40m , fair sale 35, distress sale 30m....inherited sale (broke heirs)...29m

Bosses in the house, I'm trying to invest in real estate for the first time and I came across this investment. I will like to know if it's a worthy investment or i should keep been on the look out for more opportunities. The location is ibeju lekki. Thanks

Sholapey:
The seller sent a picture and video of the four units of three bedrooms property sitting on almost 1.1/2 plot of land. Current rent value is 2m.

How does a property that have rent value of 2m per annum worth 60m?
If it likes let it be on 1 hectare of land,no person with a working economic sense will pay more than 25m for it or max max max 30m!
Bad economics and emotional price tag

ahiboilandgas:
...max is 40m , fair sale 35, distress sale 30m....inherited sale (broke heirs)...29m

40m too much!!!!

ahiboilandgas:
...max is 40m , fair sale 35, distress sale 30m....inherited sale (broke heirs)...29m

location matters! A plot of land is worth 25-30 in the area, and the property is sitting on a plot and half with CofO.

Sholapey:
location matters! A plot of land is worth 25-30 in the area, and the property is sitting on a plot and half with CofO.

If the location was right like you claim,rent won't go for the 2m naira you are calling.
Unless of course the building might have rundown.

Paulfroshman:
Bosses in the house, I'm trying to invest in real estate for the first time and I came across this investment. I will like to know if it's a worthy investment or i should keep been on the look out for more opportunities. The location is ibeju lekki. Thanks

Please i need advice bosses. Thanks

Paulfroshman:
Bosses in the house, I'm trying to invest in real estate for the first time and I came across this investment. I will like to know if it's a worthy investment or i should keep been on the look out for more opportunities. The location is ibeju lekki. Thanks

Is the inside of this 3 bedroom finished, semi finished or just carcass inside?

Is the location okay and accessible?

Those real estate companies can be funny

Theconglomerate:
If the location was right like you claim,rent won't go for the 2m naira you are calling.
Unless of course the building might have rundown.

That was what the owner told me. The property is located in bodija exit.

davosky304:


Is the inside of this 3 bedroom finished, semi finished or just carcass inside?

Is the location okay and accessible?

Those real estate companies can be funny

The building is finished but not furnished. I read that it is located around abijo, ibeji lekki. I decided to ask on this platform because I don't want to make a wrong investment.

Also going by the news of the recession looming, is it advisable that I hold on for now? Thanks

Paulfroshman:



The building is finished but not furnished. I read that it is located around abijo, ibeji lekki. I decided to ask on this platform because I don't want to make a wrong investment.

Also going by the news of the recession looming, is it advisable that I hold on for now? Thanks

I checked their page on IG, I don't think that property is ready yet, try do some physical inspection first.

davosky304:


I checked their page on IG, I don't think that property is ready yet, try do some physical inspection first.

Alright... Thanks for your response so far.

Sholapey:
location matters! A plot of land is worth 25-30 in the area, and the property is sitting on a plot and half with CofO.

ok not bad all at....we determine value from the potential rentage and payback period...a good property pay back in 12-15 years while other 20 years.....but since it have an unoccupied 1/2plot ...this can be sold for another 10m ?so the developed part is bought for 25m divide by 2m =12 .5 years .....very good buy....

Sholapey:
That was what the owner told me. The property is located in bodija exit.

the property might need up grading of 5m to make it 40m ...then sell the 1/2plot for 12m (dont leave large space for tenants that cant pay premium ) total investment now 28m then rent out for 2.4m roi is now 12 year......capitalism

Paulfroshman:




Alright... Thanks for your response so far.

Info I got is that it's an Off plan, so shud be ready in 24months or so.

Paulfroshman:
Bosses in the house, I'm trying to invest in real estate for the first time and I came across this investment. I will like to know if it's a worthy investment or i should keep been on the look out for more opportunities. The location is ibeju lekki. Thanks

am not a fan of estate developers cos your intended profits has been zap by them already they are profit driven....but if u choose to live in the house to avoid paying rents it ok

davosky304:


Info I got is that it's an Off plan, so shud be ready in 24months or so.

So do think it is a nice investment from your little research?

ahiboilandgas:
am not a fan of estate developers cos your intended profits has been zap by them already they are profit driven....but if u choose to live in the house to avoid paying rents it ok

Thanks for your input.

Paulfroshman:



So do think it is a nice investment from your little research?

Though, am interested in d property as well, am not comfortable with the 2years waiting time, cos it takes up d profit of ur investment, let me dm u if possible

ahiboilandgas:
ok not bad all at....we determine value from the potential rentage and payback period...a good property pay back in 12-15 years while other 20 years.....but since it have an unoccupied 1/2plot ...this can be sold for another 10m ?so the developed part is bought for 25m divide by 2m =12 .5 years .....very good buy....

Thank you, unfortunately this offer came after I left Nigeria. But I bought a bungalow around ashi bodija for office use during my visit and I must say that it was a bargain deal too.

Sholapey:
Thank you, unfortunately this offer came after I left Nigeria. But I bought a bungalow around ashi bodija for office use during my visit and I must say that it was a bargain deal too.

the recession will hit in 3 months times u will be amazed at bargin that will be available...

ahiboilandgas:
the property might need up grading of 5m to make it 40m ...then sell the 1/2plot for 12m (dont leave large space for tenants that cant pay premium ) total investment now 28m then rent out for 2.4m roi is now 12 year......capitalism

Thanks for your input. I will think about it cos I don't want to put all my eggs in one basket I have two properties already.

Theconglomerate:
How does a property that have rent value of 2m per annum worth 60m?
If it likes let it be on 1 hectare of land,no person with a working economic sense will pay more than 25m for it or max max max 30m!
Bad economics and emotional price tag

Properties are over priced in Nigeria.

ahiboilandgas:
the recession will hit in 3 months times u will be amazed at bargin that will be available...

Ah okay! We see then, thanks once again. �

NL1960:


Properties are over priced in Nigeria.

Most properties are over priced because of location and CofO.

Sholapey:
Thanks for your input. I will think about it cos I don't want to put all my eggs in one basket I have two properties already.

very true diversification is key to sustainability

I do not want to be disrespectful to IB, but only very few people will want to pay a rent of 2M there. Those who can afford that 2M rent will rather build their own house.
I hope it is not the sales pitch of the sellers that you are using to peg that estimated value of 2M rent? Cause I know those agents can have sweet mouth especially for people who live abroad who estimation of rent is a little skewed because of how much they themselves pay. Some people end up buying those houses and are unable to get someone to rent it at that value or get a tenant who pays the first year and stories there after.

Sholapey:
The seller sent a picture and video of the four units of three bedrooms property sitting on almost 1.1/2 plot of land. Current rent value is 2m.

NL1960:


Properties are over priced in Nigeria.

E no mean say person no go apply brain when buying ooo.
Unless maybe the property is on a choice land and the buyer want to demolish it completely and build a better revenue oriented structure.
If na to still maintain the normal 2m PA income on it and he buys it at 60m,it is definitely Yahoo money as no right thinking business oriented person that worked his way to 60m will buy it for 2m PA income.
15 years ago it cost around 30m minus land to purchase 10 flats 4 storey in onitsha.
As rent and business increased,so did building price.now with 60m I doubt if the same can be done.
What I'm saying is revenue is always the determinant for the price of commercial property.
E get shops weh no fit cost 25m to build but sells at 200m.
E get why

ahiboilandgas:
very true diversification is key to sustainability

I tried to post the video of the property here but it's not allowed as attached file, I want you to see the said property please check your inbox.

Sholapey:
I tried to post the video of the property here but it's not allowed as attached file, I want you to see the said property please check your inbox.

ok

9jatriot:
I do not want to be disrespectful to IB, but only very few people will want to pay a rent of 2M there. Those who can afford that 2M rent will rather build their own house.
I hope it is not the sales pitch of the sellers that you are using to peg that estimated value of 2M rent? Cause I know those agents can have sweet mouth especially for people who live abroad who estimation of rent is a little skewed because of how much they themselves pay. Some people end up buying those houses and are unable to get someone to rent it at that value or get a tenant who pays the first year and stories there after.

The property is 4flat, overall rent is 2m. People who loves their peace will choose to live in Ibadan over Lagos.

Ah that sounds better. You can share the video by uploading to dropbox or google drive and providing a link to have it viewed.
500k rent/flat for Bodija is very possible I believe.

Sholapey:
The property is 4flat, overall rent is 2m. People who love their peace will choose to live in Ibadan over Lagos.