₦airaland Forum

Seascape Villa by NextHome
Timeline: Jan - Mar 2016
Project Details: Completion of superstructure; framing and roofing. Internal finishes and furnishing

Current Update: Construction resumes Jan 5, 2016.

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Atlantic View Project by NextHome
Timeline: Jan - April 2016
Project Details: Completion of Pent structure, External Works, Plastering and all Pre-finish works. Finishing and Furnishing.

Current Update: Construction has resumed.

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Awoyaya MultiDwell
Timeline: Jan 2016
Project Details: Completion of carcass and installation of septic tank.

Current Update: Work resumes Thursday 7th January, 2016.

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K-024 by NextHome
Timeline: Jan 2016
Project Details: Completion of BlockWork on the ground floor.

Current Update: We are presently awaiting the completion of 28 days concrete curing period for slab to commence work. Work resumes Monday 11th January.

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Browne Mews by NextHome
Timeline: Jan - Feb 2016
Project Details: Completion of Carcass. Commencement of Browne Mews II

Current Update: SlabWork resumed.

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Awoyaya Mixed Use Development
Timeline: Jan 2016
Project Details: Completion of substructure.

Current Update: Work resumes Monday 11th Jan, 2016.

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The Chateau in Silver Point
Timeline: Jan - Feb 2016
Project Details: Piles installation completed. All Groundworks to completion of substructure.

Current Update: Work resumption date will be announced.

The last quarter of 2015 construction season has been a busy one for NextHome, as our Construction Crew takes steps to reduce the backlog of necessary work. What this mean to us is that 2016 is going to be a very busy year for us and we are readily poised for the challenge.
Consequently, the first quarter of 2016 is dedicated to completion of our 2015 projects while paperwork for newer projects and preliminary works will be ongoing.

Below is a list of the primary work scheduled for the first quarter this year (2016). As part of our usual tradition, this page will be updated once construction activities resumes in full capacity.

Happy New Year 2016!

We want to wish everyone a Happy New Year 2016 to all client, followers, supporters and NextHome Crew!!!

That this new year 2016 brings you all peace, love, happiness and blessings!

With Love, Brabus.

In 2016, NextHome recommends residential properties to newbie investors to start off with and then once you gain years of experience along with a substantial portfolio holding in residential developments, its worth looking into the commercial side. Maybe a mixed-use development first; then retail complex and malls. Once you’re 100% leased (commercial properties usually have longer lease), you’re basically on cruise control.

Investing in commercial properties require a lot of ground work. You need to pay your due diligence evaluating the market and the property. If you want to go ahead with investing in commercial properties, you need to keep an eye on local market and property conditions. You have to do a lot of calculations, as a number of factors affect the value of a commercial property. Lastly, while you do all that, you should have a solid exit strategy in your plan. It’s all these things that make residential real estate so much more attractive for investors, especially those who are just starting out.

Feel free to share your view.

Financing a commercial property is difficult.

This is one very important factor not to be overlooked. Financing residential rental properties is never difficult, as there are a large number of lenders (mortgage houses) available who will offer loan for a period of 15 to 30 years. And moreso, the residential real estate isn’t expensive anyway and is something that can even be paid off using rent money.
In the case of commercial properties, the loan amount (that's if you're able to get a nod from your bank) will be amortized for lesser year.

It’s true that larger properties can yield a more steady income, but to get that kind of money from a bank, you’ll need experience to go with it.

Before I drop the last point, it may be worthwhile to ask ourselves "Is investing in commercial property worth the hassle?"

Old commercial properties are threatened by new and upgraded properties in the same area.

Investors of old commercial properties are always threatened by newer and upgraded commercial properties in the same area. Tenants always look for modern and upgraded office areas or business spaces. It’s the same with residential properties but the cost of upgrading offices can be a lot more expensive than upgrading a house. As newer properties pop up, the risk of vacancy to existing properties increases which might mean the owner of old properties will be forced to lower their rents.

Getting tenants takes longer with commercial properties.

Though commercial properties can enjoy long-term leases of three or even up to 10 years upfront. However once it's vacant, it usually takes much longer to find suitable tenants for these properties. Since these properties are rented out for business purposes, finding a suitable match between the location of the property, the type of the property and the business requirements of relevant companies usually takes a longer time.
That has a big effect on the cash flow. The owner is also expected to cover all the costs (maintenance, fees and licensed as required, etc) during this period. This can be a huge burden on the owner, as it cost a lot more to maintain commercial properties when compared to residential real estate.

In addition to all this, handling commercial tenants, lease value and vacancy agreements demands quite a lot of expertise which comes at extra cost to the owner.

Valuing commercial properties is difficult.

Residential properties are usually rented out by using rent comparison. This means the owner compares his property to similar properties around. And finding similar residential properties is never a difficult task. It usually means going around the neighborhood or from estate agents.

In the case of commercial properties, it is very difficult to compare two properties. A number of factors affect the value of these properties. It is very hard to find similar looking properties that have been rented out recently and are also relevant for the same target audience.

Commercial properties are sensitive to economic conditions.

As the economy grows and shrinks, both commercial and residential properties change with it and can have a lower ROI than expected. But experience have prove it to us that commercial properties are far more sensitive to a changing economic climate. Everyone needs a place to live, and most jobs are relatively stable. More people now work-from-home. Even when the economy is taking a downturn, people will always need to have a roof over their heads. There's 17 million housing deficit in Nigeria yet we have thousand of unoccupied commercial properties lying down.

When the economy is strong, the demand and the price of commercial real estate go up. People renting commercial property may choose to operate from home instead and close shop when the market is bad. But, even when the economy is doing great on a national scale, local economic changes (government policies) play their part as well. Maybe the location you’re offering is no longer as desirable as it once was or the location was affected by new government policy. When that happens, your property might go years without having a tenant.

Commercial properties are complicated to understand and manage.


Before investing in a residential property, you (in most cases) are already armed with information about the rental market, the build cost, what it will cost to repair the house (if you're buying-to-let), the value of the house after the build/reno and the kind of rent that you’ll be able to get from it. These simple things come with experience, and none of the information are difficult to obtain. In fact, you can get a lot of information simply by asking people. Talking to the neighbors about what other places nearby are able to collect in rent will immediately give you a good idea of what you can expect and what to invest.

Simple! You think.

Things are not so with commercial property. This requires been armed with similar information and much more complicated details.
Figuring out the numbers/stats requires knowledge that are not readily available. Other crucial factors includes the future desirability of your property, the lease period, how solid the tenant is and the type of business that best suits your property. The value and the rent of your property also depend on the types of businesses running in the area in which your property is located. All this and many more makes it quite complicated to jump into commercial real estate investing.

The bad news no one will tell you!


You might have heard that there's boom in the Nigeria real estate sector, blah, blah, blah; that any type of property, whether it’s commercial or non-commercial, is a good investment opportunity in Nigeria. And more so, the commercial properties offer much more financial rewards in comparison to non-commercial properties.

But the things most people won't tell you is that investing in commercial properties is quite a bit riskier and messier than investing in non-commercial real-estate.

Here, I’m going to touch on the key issues that should make you think twice before investing in real estate.

Before I do, let's define Commercial Real Estate

Commercial real estate is a class of property that are used for business purposes. It consists of three sectors: office, retail and industrial. Commercial property is often preferred for reasons like high returns on investment, longer leases and smaller deposits. These things look good mostly on paper but the associated risks are enormous.

Good Evening and Welcome to 2016! It's Brabus again and this time we need some hard talk to get our new year started.

I'm sure there are some people who doesn’t love the controversial headline. And I also believe this topic is going to upset some commercial brokers, investors and real estate agents who will be ready to unleash a mouthful of comments on this thread.

Now before you make your comments, please keep in mind that I’m a big believer in commercial real estate investing and I'm well aware of the direction we are headed (in Nigeria) right now.

So I'll advice you to sit back, relax and enjoy this topic. It'll be fun and educating.

cc: seun, lalastica

Updates from The Chateau de Brabus | My CountryHome (a NextHome Pilot Project)

It's a dream come true!

Happy New Year 2016

Happy New Year 2016

NextHome Official Weblog is live now!

Visit www.nexthomedesigns.com

NextHome Official Weblog is live now!

Visit www.nexthomedesigns.com

Happy New Year 2016

@Coolcash1, That's definitely not me!

kausmic:
This is neither a Brabus nor a 2014 G-class.
This looks like an inexpensive Japanese Upgrade Kit on a 2008 G500

God bless. You go buy me this year!

Both houses below are constructed by different builder and budget is almost the same. Which one will you choose? Which one do you think will attract the best tenant if built in the same location? Which will give best ROI? Which will have higher occupancy rate?

Building is not just knowing how to put walls together, it's everything up to recovery of your invested fund.

Use your church mind mark the script after answering the questions.

Ask yourself this honest question, am I doing it right? If I was given the opportunity to own one of the buildings below, which will I have chosen?

Even Hajji Ayinde Barrister sang it in one of his song "To ba je pe saje lo l'aiye, e je ka jo maa ko" meaning "Whatever is trending, let's follow suit"

@Fastshipping,

I told one of my client I'll win "Grammy" (don't correct me, I'm not drunk) with my ongoing builds. My prayer is God should give all of my contemporary clients the fund to complete to taste!

Opon Ise Ile kiko ti sun. Construction don pass "na so we dey do am"

But here, our people call it packaging (as if I care). There's no special difference between a "Four Flat" and a "MultiDwelling Apartment", the difference are the people who built them. One was conceptualized and constructed by the people who live in the moment while the other is constructed by people stucked in old way of doing things.

EgunMogaji:
Gracias mi amigo, El Presidente de NextHome.

de nada

FastShipping:
I change them like underwear.

EgunMogaji:
Question for Ibadan boys

If I have approval to plant a structure on my plot already and i decided to plan an accessory building. I am assuming that i will need to get another approval.

If so what level of detail is needed in Ibadan knowing there is an existing plan with site detail, septic system, etc

Not necessary if you're not adding another floor or making a major remodel.

This is Ibadan, Naija and not Washington DC, USA where you require permit for everything.

Just use your church mind (if you're familiar with that term) to do what is right structurally.

spyder880:
Thank you , my team of workers have been upgraded and the results are showing.

Upgrading is allowed. Same thing here sef. There's no better way to set standard for our business.

Nice work all the way!

soluution:
Hi Brabus,
I prefere this alluminiun parapet to concrete, but i ' ve not seen it b4. is it in the market and considering the advantages. why are ppl still going for concrete parapet?

Pls how durable is it?

Your mobile pls lets discuss on whatapp

Rgds

Aluminium Parapet System is very durable. But if you ask me if I have chance to do it over again, will I use the same material again? My answer will be "Maybe" subject to availability.

Whatsapp: +2348023429122

@agenta899,

By the powers conferred on me by the Baba and Iya Isale of Nairaland Property board led by Hajji Mufutau55 and other good people that frequent this board, I hereby close this thread permanently until you're ready to tender unreserved apologies to Spyder880 and Management of Tigerken Homes for wrongful accusation.

We hope you'll be man enough to do this and we all move on. No pun intended. We have no reason to witchunt anyone or castigate you because we are our brothers keeper on this board. We will do the same for you or any other person if we found that you're wrongfully accused.

Your own statement below:

agenta999:
In all i maybe mistaking and will apologise once i am corrected. Still waiting for corrections.

However, if you choose to be smart about this. We will like to inform you that your IP has been logged and newer ID or monikers opened by you will be posted on this thread to warn other thread users.

Thank you.

Oga TLAX, na you open the thread wey I close.

You fall my hand as "moderator" There's godu o.

Mission Accomplished | Boys Back to Base

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^{The moderators of this board needs your prayer. #hopeitwontendinaBAN}