₦airaland Forum

kings38:
Just simple finishing.. I want to be prepared in order to start the project immediately after the design

ocelot2006:
This is sheer stupidity. A boycott will favour the APC. IPOB, here's an idea: why not participate in the elections AND vote in a party where the no. 2 citizen to be hails from the SE with the prospects of getting the no. 1 post high.

Basalt:
hmmmm.
I visited Ochanja market today, after spending some hours there in the footwear market, I passed through Ochanja round about and headed to the almighty Main market and also surveyed that place.
Mehn, its not a childsplay, though their Ofe Nsala delicacy is second to none.
From my findings, I think It will require lots of experience, doggedness, money and smartness to survive there.
i visited many sides and even went to Emeka Offor plaza and i was at Onitcha till around 5pm and left few minutes before market closed.

Well, I think I will use the money and apply for Msc in germany this year.
I am too gentle for Main market, I will plan to leave this country and study more since I have a very nice result.

diordaves:
In anything you do, value added is always more profitable. Just selling the land is just a premitive state. You add value by erecting a structure. Just exporting Cocoa produce is premitive and far less profitable than adding value into chocolate bar.

So how do you calculate the 'profit' of a building the way you asked? Do you need 30 years to get your money back? Certainly not.

When you calculate in such respect, you use the principle of amotisation, depreciation and residual value. But let's not go into all that.

Let's use a practical example. If you gave your contractor 40m to erect a structure for you, immediately your keys are handed to you, that structure is worth well over 40 million on completion. Fact.

So let's say for argument sake, on completion the building is now worth 80 million. Let's say it took you three years to complete.

So you calculate by dividing 80million by 3 years. So your building is 'making' over 26 million a year. So your break even point is under 2 years. This is the point you get your money back.

If on completion, your property starts losing value, then it may take 30 years to get your money back or not at all.

So the rent you generate, is just an extra income and there is a calculation for that as well to know if you are making profit. You use the Return On Investment (ROI) calculus.

Basalt:
Hi guys. Please, I don't want to bore you guys with long stories.
After some few research, I found out that Onitsha main market is the biggest market in West Africa and therefore whatever you sell there will surely be patronised.
I want to start a business there and I am considering a good that is always in demand.
A good that is not so perishable and a good that I can easily sell.

I am considering
1. Clothes and shoes
2. Engine oil
3. Etc

I have like 2million for the business.
You can as well suggest to me any other good business I can venture into.
I am looking forward to hearing your response

fykes:
The average Yoruba man is all talk and no action..... It's not ambodes fault that he's a coward... He's born one

allCopacetic:
You're forgetting that not only is the property still yours at the end of the recouping period, but the value of said property is significantly increased (most times exponentially) .
Your N15m building could be worth N60m by the end of your recouping period. Plus a continiously increasing rental value

megacontrol:
Interesting question...

Firstly, a property that takes 30 years rental to recoup its initial purchase or build cost is wrongly priced. Either you've overpaid (purchase or build cost) or you are undercharging (rental) or there's just a mismatch between the property value and rental value in that location.

That is why it is important to do your numbers and do it right. ideally, your property should pay back its value in maximum 20years. sometimes it is less depending on other factors e.g. if you've acquired the land long time ago before it's value appreciates significantly, then you just come and build on it versus if someone else comes to the same place and purchases the land at current value and builds on it at the same time as you. in this case and all other things being equal, your total investment will be significantly different whereas your annual rental return will be same, so your investment payback period will be different.

Personally, i will expect a payback period of btw 10-15yrs. this is very feasible and there are plenty known practical examples.
you have to keep these things in mind when negotiating a property purchase or when you're building for rental.

The trend seems to be shifting towards build to sell, especially in prime locations and cities in Nigeria.

The interesting thing is that in those high-value locations where property are priced higher, your invested sum is more, the returns are higher and the therefore the payback tenure is less. if you go to a less developed area and build an expensive house there and you cant charge a commensurate rental fee, then your ROI will be less and it will take you longer to recoup.

So you need to;
1. have a proper understanding of property valuation in the location of choice viz a viz going rental rates.
2. do your numbers before deciding if to sell land "as is" or invest more to build. and if/when you you build, do you sell or do rental?

Like they say...in real estate location is everything.

theoldpretender:
Hmmm

Eventually, we are going to do two things in this country...and by extension the whole of Africa because there are countries with two or three tribes that like ehrding cattle (Infact part of South Sudan's problems are due to cattle related problems)

1.Massive grazing ranches...to be run as cooperatives,set up in the far North...with the aim of supplying an agro allied industry and dairy industry. Each and every of these ranches would be linked to the railway network for easy transport of export related products.

2.Additonally, we have to fix the railways.

The era of roaming around with cow is at an end.Our populaiton is now 200million. Back in 1963 we were 55 million,and our railways were already trasporting cow realted products to the South. Too bad mismanagement in the 1970's led to the problems we have today.

Ngozi123:
I saved the number you gave but it was someone that I've never spoken to before.

diordaves:
To me, in such a terrain, this is a sensible and very practical alternative. I will not spend a Kobo on any geological survey that might turn out to nought.

If you can achieve water digging a well, do but build a water tower above the well. Put an appropriate water pump in the well to pump water to the tank for distribution to the house as you would with a borehole. Problem solved. Build a cover over the well for safety. Thanks a million for the advice, borehole digging is also cheaper here because the locals have readily available labour for it.

I've seen this done with fantastic results in places with challenging water table.

Ashrush:
Hope this helps

Ngozi123:
Got it! I think that you should delete it now.

diordaves:
I don't have any experience mining water from such terrain but if it were my lot I will do the following:

Seek out neighbours to find out how they source water. I will look for a neighbour with a functional borehole and ask for reference and bounce off ideas off him/her.

If for some reasons no local example to take a cue from, I will look for a reputable company or persons to carry out a credible soil/topography test and mapping. The resulting report will determine if to drill for water or not.

In such topography, drilling for water without prior test may be money down the drain.

diordaves:
Borehole is strictly location specific. What's your location?

Water tower depends on type of product. There's galvanized pipe and 'H-pipe' . What are you looking at?

Galvanized as from 300k for 40ft. It's not unusual to spend well above 400k with cross (X) beams.

Niorte:
Why are you afraid to show us the mammoth crowd as usual.

APC is not yet born in South East

ican2020:
Supporting a man who could not differentiate between left and right.

Many Nigerians needs deliverance from foolishness

ican2020:
Supporting a man who could not differentiate between left and right.

Many Nigerians needs deliverance from foolishness

luckygeee:
start what with 60k precisely?

luckygeee:
bros i done observe tire, na to start be the koko now

luckygeee:
nairalanders please i have been thinking of having a side hustle to the work i do, and as such i want to start a business but i don't know which business to start. i have budgeted 300k for the business. i really need ideas on a business that can yield return on investment in a short period. thanks as i await your sincere opinions.

Nduxx:
Too common, it's the ones in relationships that will still come to you

chiangwar:
ATIKU is back shame on you .

AerialMapper:
Not the point. You said he would be back tomorrow

AerialMapper:
Nostradamus, how far?