Theconglomerate:
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

If that's the case, why do people sell just 5bedroom duplex in places like Ajah, some part of lekki and other places for over 60m and above but the rent value is wack and people are still buying and keeping it empty because they couldn't fine tenants. Are you saying the developers are Yahoo or the buyers? Don't get me wrong, I bought a plot of land for 8m sometimes ago in magboro bankole estate precisely, but I sold it immediately I heard the value of rent, check it out yourself.This particular property is worth the said price because it's a 4units of three bedrooms flats situated in bodija exit, on one and half plot of land with CofO. Go do your findings!

Aquilapriscilla:

Wait,but is this even possible? Having two bank accounts within the same bank?
Good morning

You can have as much as you can.
I know someone who had like 10bank accounts all savings with a single bank still this year.
Yes. I can explain
Some banks do this traget monthly savings stuff, where u commit to pay in a particular amount per month.
They could open as much as you want to be on that platform.
At the end its just a regular savings account with one BVN

ahiboilandgas:
ok

Please check, I've sent it to your WhatsApp.

Sholapey:
If that's the case, why do people sell just 5bedroom duplex in places like Ajah, some part of lekki and other places for over 60m and above but the rent value is wack and people are still buying and keeping it empty because they couldn't fine tenants. Are you saying the developers are Yahoo or the buyers? Don't get me wrong, I bought a plot of land for 8m sometimes ago in magboro bankole estate precisely, but I sold it immediately I heard the value of rent, check it out yourself.This particular property is worth the said price because it's a 4units of three bedrooms flats situated in bodija exit, on one and half plot of land with CofO. Go do your findings!

If you checked,you will see that I stressed on "commercial properties" a lot.
Do people consider duplexes as commercial property in this part of the world?who want buy or rent am?
People that have money to buy them usually like to build theirs to their taste and those that rent them are usually semi-mad(in essence,demand is so little)
So there isn't a market for it here and cannot be used to make analogies in this case.
If you want to be realistic,make reference with these;
-Warehouses close to markets
-shops in busy markets,roads,etc...
-apartment complexes for various income earners(selfcon,studio,2 bedroom,etc...)
-Office space.... just to name a few
Na wetin market want be this.
Any designated Commercial property that cannot yield it's purchase value in 12-14years is a bad investment.
I can decide to build a duplex today with 100m to please me to my satisfaction,then when I make more money,I go to mansion and rent the duplex for 1.5m.
It was never a commercial property but an emotional investment so I really don't care how much it generates.
But if you are doing 4 apartments as business for 60m naira with 2m PA,it is not encouragable.
Unless of course,you dey buy it for land purposes.
C of O and location is important no doubt,but your rent value have already told me that property isn't in such a desired location to be worth 60m on 1 and half plot.
Well,its your money.

My point is that you should price that property well and you will see it's true value.
No go buy corolla with range rover budget.
I was just advising oo don't get me wrong..

Theconglomerate:
If you checked,you will see that I stressed on "commercial properties" a lot.
Do people consider duplexes as commercial property in this part of the world?who want buy or rent am?
People that have money to buy them usually like to build theirs to their taste and those that rent them are usually semi-mad(in essence,demand is so little)
So there isn't a market for it here and cannot be used to make analogies in this case.
If you want to be realistic,make reference with these;
-Warehouses close to markets
-shops in busy markets,roads,etc...
-apartment complexes for various income earners(selfcon,studio,2 bedroom,etc...)
-Office space.... just to name a few
Na wetin market want be this.
Any designated Commercial property that cannot yield it's purchase value in 12-14years is a bad investment.
I can decide to build a duplex today with 100m to please me to my satisfaction,then when I make more money,I go to mansion and rent the duplex for 1.5m.
It was never a commercial property but an emotional investment so I really don't care how much it generates.
But if you are doing 4 apartments as business for 60m naira with 2m PA,it is not encouragable.
Unless of course,you dey buy it for land purposes.
C of O and location is important no doubt,but your rent value have already told me that property isn't in such a desired location to be worth 60m on 1 and half plot.
Well,its your money.

I disagree with the bolded. In areas like Lekki, Elf, Oniru, Gbagada, Magodo, Chevron, all in Lagos, your hypothesis would be rubbished.

Sholapey:
I bought one last two month and another one came up 3days ago but I already left 9ja. The property is worth 60m thou but it's now on the market for 35m

My dear relax, that property was never worth 60m.

In reality, you were told owner would have been interested in selling for 60m

Now these two different things...

Let me give a negotiation hack.
The moment anybody is willing to write off 20% and above instatenous discount on a cost value. Just know that that property is not up to even 80% of the asking price.

I wonder what was removed from a property of 60m to make it sell for 35.
"Nigeria Recession" alone is not enough. Did somebody died in the house?

deepwater:


My dear relax, that property was never worth 60m.

In reality, you were told owner would have been interested in selling for 60m

Now these two different things...

Let me give a negotiation hack.
The moment anybody is willing to write off 20% and above instatenous discount on a cost value. Just know that that property is not up to even 80% of the asking price.

I wonder what was removed from a property of 60m to make it sell for 35.
"Nigeria Recession" alone is not enough. Did somebody died in the house?

Well I have seen the pictures and videos of the property, I have also send copies to oga @ahiboilandgas to see and value it, as far as I know no one died in it.

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

not only peace but qualify of life and sanity...my Chairman has a 55 bedroom hotel in ibadan by the Golf course

ahiboilandgas:
not only peace but qualify of life and sanity...my Chairman has a 55 bedroom hotel in ibadan by the Golf course

You're right! Please check your WhatsApp for the property and say the honest value here pls.

Wickedfacts:


I disagree with the bolded. In areas like Lekki, Elf, Oniru, Gbagada, Magodo, Chevron, all in Lagos, your hypothesis would be rubbished.

Can you please tell us how much these duplexes go for in these so called areas PA?
Also,try and compare the number of regular apartments of all sizes and duplexes and tell us which one plenty pass.
Then,you will see that you just proved my point.
In these same areas,you will find out that those duplexes you see for rent are owned by middle class people that moved up the ladder and went for something better.
Hence,they didn't build it with the intent of commmercialising,it was just a case of how man go do.
Nobody go intentionally commercialise property worth 200million for 5-7m PA,unless na "ndi ego mbute" looking for where to hide their loot.
It is not economically viable.
Even for banana island,properties for let are mostly luxury apartments and not duplexes or mansions for a reason.
So my hypothesis stands.

Sholapey:
Most properties are over priced because of location and CofO.

Largely true

Sholapey:
Most properties are over priced because of location and CofO.

what will u advice any one going into real estate business beside what amount should the person be looking at as a capital

cc: ahiboilandgas

abraolas1:


what will u advice any one going into real estate business beside what amount should the person be looking at as a capital

cc: ahiboilandgas

What is your startup budget?

Sholapey:
What is your startup budget?

between 2M and 3M

abraolas1:


between 2M and 3M

Fear enough! You can start from land bank. Buy land and keep for a while then sell it off when the value goes up.

Sholapey:
Fear enough! You can start from land bank. Buy land and keep for a while then sell it off when the value goes up.

OK thanks for that wonderful advice very grateful

abraolas1:


OK thanks for that wonderful advice very grateful

You're most welcome!

@ahiboilandgas pls I need ur contact, things are about to go down in the pricing and distribution of PMS and other petroleum product.

We need to position ourselves not to be in limbo.

Sholapey:
If that's the case, why do people sell just 5bedroom duplex in places like Ajah, some part of lekki and other places for over 60m and above but the rent value is wack and people are still buying and keeping it empty because they couldn't fine tenants. Are you saying the developers are Yahoo or the buyers? Don't get me wrong, I bought a plot of land for 8m sometimes ago in magboro bankole estate precisely, but I sold it immediately I heard the value of rent, check it out yourself.This particular property is worth the said price because it's a 4units of three bedrooms flats situated in bodija exit, on one and half plot of land with CofO. Go do your findings!

Real estate is unregulated, some of the asking price are inflated which makes such properties to be in the market for years. There is a lot of speculation in the property market, use the likely rental income of such properties to determine the value so that you don't over pay.

Rental income multiplied by 15 to 20, will be a good guide.

A property of N60 million should give a minimum rental income of between N3 million to N4 million per annum

deepwater:


My dear relax, that property was never worth 60m.

In reality, you were told owner would have been interested in selling for 60m

Now these two different things...

Let me give a negotiation hack.
The moment anybody is willing to write off 20% and above instatenous discount on a cost value. Just know that that property is not up to even 80% of the asking price.

I wonder what was removed from a property of 60m to make it sell for 35.
"Nigeria Recession" alone is not enough. Did somebody die in the house?

Savage!

Sholapey:
You're right! Please check your WhatsApp for the property and say the honest value here pls.

You've made your point. Honestly, don't expect everyone to see it from your perspective. Congrats on your purchase!

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

You will get similar property in Mafoluku Lagos for between N25 million and N30 million

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.

That will be 500k per apartment

emmanuelewumi:



Real estate is unregulated, some of the asking price are inflated which makes such properties to be in the market for years. There is a lot of speculation in the property market, use the likely rental income of such properties to determine the value so that you don't over pay.

Rental income multiplied by 15 to 20, will be a good guide.

A property of N60 million should give a minimum rental income of between N3 million to N4 million per annum

Great! Thanks for your input.

Until you price one in that area, and you would be told 40m to 50m.
As at last 2 years a building was sold for 50m in mafoluku.
So get your fact right


You will get similar property in Mafoluku Lagos for between N25 million and N30 million[/quote]

emmanuelewumi:



That will be 500k per apartment

Exactly! Or if renovated offer is now 35m.

Sholapey:
Well I have seen the pictures and videos of the property, I have also send copies to oga @ahiboilandgas to see and value it, far as I know no one died in it.

What part of Ibadan is the property located, what are the amenities in the area?

We need to be very careful so that we won't over pay for investments most especially real estate

Sholapey:
Exactly! Or if renovated offer is now 35m.

Therefore the property was never worth N60 million in the first instance

stephen13:
Until you price one in that area, and you would be told 40m to 50m.
As at last 2 years a building was sold for 50m in mafoluku.
So get your fact right


You will get similar property in Mafoluku Lagos for between N25 million and N30 million

I am a son of the soil, born and grew up in Oshodi.


You will still get for N25 million in Mafoluku if you can pay in the next 48 hours.

My father built his block of 4 flats for about N40,000 in 1983. He has been collecting rental income for almost 40 years. There was a time when tenants paid rent of N600 per annum, that same apartment is now 600k per annum that is more than 1000 times the initial rental income generated by the property in 1983.

An investor who has diversified the rent generated over the years by building other houses and having other investments will sell for N25 million and still feel proud.

Get in touch with the Realtors on ground who have direct briefs from property owners.

Emmanuelewumi and Stephen13, there is currently a block of 6 units of 2 bedroom flats for sale in Mafoluku for 35M asking.

There is another newly painted block of 6 units of 2 bedroom flats at that same Mafoluku for 40M.

Let me teach you something I do. If you want to buy something priced like 35M, write a cheque of like 25M, leave it unnamed, snap it and attach it to a Letter of offer for 25M. Even if the seller turns it down initially, he won't be able to sleep.

I have told my clients not to buy any property yet. Currently have 3 of them I told to hold on till early July. Then, we would enter the property market for point and kill.

MrMcJay:
Emmanuelewumi and Stephen13, there is currently a block of 6 units of 2 bedroom flats for sale in Mafoluku for 35M asking.

There is another newly painted block of 6 units of 2 bedroom flats at that same Mafoluku for 40M.

If you want to buy something like this, write a cheque of like 27.5M, leave it unnamed, snap it and attach it to a letter of offer. Even if the seller turns it down initially, he won't be able to sleep.

I have told my clients not to buy any property yet. Currently have 3 of them I told to hold on till early June. Then, we would enter market for point and kill in real estate.

Thanks for your insight. That means it is still possible to get a get a block of 4 flats for a cheaper price at Mafoluku.

What are of Mafoluku is this property located, my old man's place is at Beesam