₦airaland Forum

Does Nigeria have a Real Estate Investment Trust (REIT) company?

From a business point of view, that is a reduction. From a government point of view, a good thing.

ahiboilandgas:
yes it get saturated like with the closure of broader....consumption has droped example adamawa get 100 trucks daily before now 40 trucks and no scarcity
....meaning less haulage trip ..yanking off 60m daily from the bussiness from adamawa alone

Make una de marry one wife de born only 2 children na. Also make una de run enter Canada, UK, US, Afghanistan etc, na those aboki go soon de give una Visa to re enter the country.

I was told of someone who grew 3M into about 14M in about 3 years in this cement biz. Your analysis here makes it look possible.

ahiboilandgas:
I also observed that trading is more profitable ....selling cement or fmgc in Nigeria can rake in 80 percent anum...example a truck load of cement is delivered at 2200 per bag sold for 2400 .gross profit of 200 x900 bags (180 k) the capital is 2200x900=2m .....a good location can move 900 bags weekly....

Exactly, sounds good to be true. In Ibadan of all places for such rent.
Then a 10m with a rent of 1M looks like a very far stretch.

Poanan:
hmm... dont ask the tenants but use someone to act like a prospective tenant. A rent of 1m per annum in Ibadan? Then the cost price is to be negotiated for N10m? a house with a rent of 1m per annum cannot have a market value of N10m. Not like i am trying to say something but look very well.

If you look at the it from the lender who has a choice point of view, you can get the general idea of what they aim to achieve. Whether you accept it or not is a different matter entirely.

Emmaesty:
I am still struggling to understand what they want to achieve by reducing TBills to almost nothing

You are so so open. May God bless you and your efforts.

Does this biz get saturated. What is the simplest and easiest entry point if someone wants to learn the ropes.

ahiboilandgas:
2019 ...we moved a total of 15million litres of aviation fuel 5 million litres of pms for MRS , Onando, ceta , Nigeria airforce using a fleet of 16 trucks ...recorded 3 accidents in april, august and December with insurance paying 80 percent of the loss (7m ,1.5m,5.2m) we also paid tax of about 1.5m and have a wht of ( 5m )....we currently have a court case court against a bus company that hit our tanker....even with the poor Nigeria economy we grossed 150m in 2019

This is priceless.

emmanuelewumi:
About 25 years ago, there was a taxi driver based at Eko Hotel. There was nothing like Uber, Taxify etc.

The taxi driver was patronised by expatriates, diplomats, business executives on the Island .

The man made a lot of money but was reckless with money and women. His wife formed the habit of stealing her husband money on a daily basis.

She used the money to buy a plot of land at Agric area Ikorodu Lagos, she built a bungalow of 2 flats and 4 shops in the front of the house.

About 3 years ago, the man's taxi business nosedived and finally collapsed because of disruptive technology in form of e-hailing and competition from the likes of Uber and others, the government had earlier destroyed their taxi park at Victoria Island.

Money was not coming as it used to, he could not meet up with his house rent, he could not replace the vehicle he was using for taxi and finally he was given a quite notice to vacate his apartment.

He tried to raise money for another house, all to no avail.

Until the wife who is a house wife cum trader, took him to a house at Ikorodu. He liked the house, he now asked the wife where would he get money for this house.

Until she told her husband that the house belonged to them. He asked where did she get the money to build the house, she told the husband that she had been stealing from the husband all the while and she invested the money on behalf of the family.

The husband postrated and thanked the wife, and asked the wife why didn't she steal more money from him he said he never knew that his money was ever stolen

There is nothing as good as having a frugal wife who is interested in the progress and future of her family.

How did you arrive at 180k. The guy used USD, that value is around 7m per annum meaning he earns around 500k per month.

ahiboilandgas:
that terrible i taught is around 180k but that edwin how much the guy the earn?...but refinery is not yet operational so no cash flow....only expense...example if am Building a hotel ...the staff during construction will earn less than the once during operation

Lol

ahiboilandgas:
aboki with a bsc bussiness admin only

I think you should remove Ajah from your list, perhaps, what type of apartment then? If the same 2 bedroom apartment then Ajah and even lekki should not be in your list but if you are talking about duplexes then maybe yes for Ajah.

ahiboilandgas:
lekki /ajah is a wrong location for rental income cos the choice is wide and supply has pass demand ...u have to target areas with limited supply

Nigerian

ahiboilandgas:
i really dont know buy my friend the group commercial director earn 40m annually plus a house in ikoyi plus a new pajero jeep ...he was the former m.d of ashaka cement

I am not sure I understand you, but my point is that even if one tenant gives you problems it will not likely be all of them at same time.

Pascopele:
Easier said than done ask barrytone and you will marvel

I hear say Dangote non de pay well o. FCMG industries are like that though. Yes, you are spot-on, most income brackets target those kind of apartments.

ahiboilandgas:
make dangote and jim ovia hear u ....u didnt see some bill in aura night club of 10.m ....why 2 bedroom apartment moves is because that the income bracket the Nigeria economy produces more ....if gtb employ 500 new graduates at 250k permonths ...this will be their target home but dangote group might employment on senior manager and rent house of 2.5m in lekki for him

This reenforces my belief in 1 bedroom and 2 bedroom apartment. It is hard to go wrong with them. Almost everyone I know started from apartments like that as their career progressed.
When rich people like Ahib want to rent houses for their concubines, they also go for such apartments, so the demand stays high with high competition.

ahiboilandgas:
My friend bought an old house for 18m...100 by 150 land size built twin houses with 4 apartment(1 bedroom) each totalling 8 apartment well finished @6m each total investment is 18m +48 =66m million ......everthing was rented at 700k x 6 =4.2m ...he even collected tge agreement fees/agent via proxy 600k and everbody paid 100 each at caution deposit 600k ....the tenants are coperate people all working (verified) some chinese guys even paid 2 years of 4 flats

I will not claim to be an expert in real estate but I think I have observed the pattern enough to make some informed analysis.
For me, if I want to buy or build a house to be a rental property, then it will be a block of 1 or 2 bedroom flats. The demand for that is usually high from bachelor's, spinters, newlyweds, young families, relocating individuals etc. And the location plays very little role in all of these. For me, if you are buying a duplex, it should be because you want to live in it or you are buying at a low price with the aim of selling at the proper market rate. Most people who can afford to rent a duplex can afford to build theirs if they want to.
Also, if a duplex tenant defaults, that is at least 2M hanging somewhere, compare that to a block of four 2 bedroom apartments, if one tenant defaults or packs outs, there will still be income from the other apartments.
Marketers and agents will always sweet talk you into buying a house by helping you see the unrealistic future.

Diyke4rich:
Property business to me is capital NO, I was trick by agent in 2014 buying a property over 55million naira, at ikota villa estate, rental is 3 million naira annually telling me in 3years property will be over 100m today to see a tenant is a problem, 2 times I manage to see a tenant after that annual rent expire to move out na wahala, if them manage move out them go leave damage worth over 1m naira which you have to repaint in and out again, sometimes it stay vacant for about 8months to 1year to get a tenant again, today I am really regretting that investment cos I bought the house when dollar $1 was 198 now devaluation of naira have finish me and even the rent is not coming in, so be wise when buying a property to me now is a no go area anymore.

They gave you money for shopping and you invested and compounded it? Please, do you have a sister like you?
This is a new one for me on Nairaland.

tracyorez:
Funny enough.it is the excess I saved from monthly shopping from my husband.he gives me a lot for shopping and I decided to shop less and save more.
I am a full time housewife.

Good deal if true. If my memory is right, you are the guy in Europe which suggest you are doing your investigation by proxy. Nigerians are capable of any stunts. À 10M house will be a 3 bedroom flat I reckon. If these things are true then the investment looks good.

I also consider wedging against forex as a good investment strategy.

Nigsrdumb:
There are tenants in the house already. They themselves confirmed the rent. One of the current tenants wants to buy the house but doesn't have enough funds.

Has stated previously only invest in things you understand.

As for inflation rates , I peg my naira against a foreign currency to know when the value of my funds are going down, because I don't believe in the voodoo economics goodluck is playing.

As to your question about incentive, for a lot of people, it is the low risk.
Now you are negotiating a building for 10M and rent will be 1M? I can bet you that it is the smooth talking agent or marketer that is telling not to worry that as soon as you buy someone would rent it for 1M. At the risk of sounding like an alarmist, apart from aerodromes estate, what part of Ibadan has a rent of 1M?
Also sir, assuming you really get a tenant asap, the present inflation rate is around 13%, you are already at -3% deficit, does that mean you will increase rent to 1.5M to beat inflation and risk having the house vacant the whole year. Inflation has its important role but they should stop using it to scare low risk investors.
But seriously, I suggest you do an independent assessment of the rent around the area you want to buy the house you are negotiating before you make your buying decision.

Nigsrdumb:
What is the incentive of investing in naira at 5 % when you can earn 7 % in a foreign currency to mitigate any gra gra from CBN?


The economic indicators don't make sense, it's not clear what emefiele is trying to achieve.

I'm negotiating the price of a property in Ibadan for ten million, rent is 1 mill per annum, that's an roi of ten percent and I don't need to worry about inflation.

I don't think the guy is fear mongering just being realistic

Inflation this, inflation that. Inflation scare mongering is now being overhyped. It is like asking someone why he is still under paid employment under the same salary when the inflation rate is at x%.
A 10% inflation rate does not directly mean that your 1M has a new specific value of 900k, it is a lot more complex than that.

bjtinz:
TB in this day and age??

Inflation at double digit and yet you lock you money for a measly 5-6 % ?? That means in real terms you're actually poorer than when you invested because your gain when adjusted for inflation will be in the negative.

Seriously guys, I know it's painful, but I think it's time to move on. . .

That is not the problem.

Ikpemalueziokwu:
OP pls I received a mail that my Author name wasn't the same with my book content, therefore my book was reverted to draft. Pls what does this mean? Should I use d name I use I registering for kindle publishing? Cos my name I used in registering defers from the name I put as author's name i.e I used my local name in signing up and used a white name (pen name) on the book. Is that the problem? Thanks man

The governor missed an opportunity to win some more supporters within Oshomole's base. All he needed to do was to move the items to a central place and distribute the rice and call butchers to kill and share the cows to anyone available. That would have been a disruptive ways of encroaching into Osho's support base. Just name it Obaseki rice. Those poor people for non care who bring the Xmas gift o.
Na Fayose trademark be that Sha.

Mutual funds should be your best bet.

The driver can afford to run knowing that he is not the real owner of the bus. The real owner will now be at a loss coz of the carelessness of this driver.

Oga, if you followed the discussion, you will see that I was saying the exact same thing you are saying. Peace.

ibechris:
Sorry to take us back,this una matter tire me oh.
I live in Kubwa Arab road where u can get more than 24hours electricity and the two bedroom I live is highly comfortable for me and my family of two,compared to the one I lived in earlier,water is constant, light is steadier,close to the major express road,prepaid is running smoothly and in all of this,I pay just N650k.
I prefer to remain a tenant for another five(4) years before I would move to my personal house.
For those saying we need 40k per day to live a comfortably, I say no no no to that because living well is a relative term which could mean sleeping around and spending recklessly and for me,might be living according to my set goals.
However, I want to use this opportunity to beg all the big guys in this house to pls,desist from calling humongous figures like the one above,reason being that we have people who are earning far less than this figures and continuous use of this supposed figures send a bad signal to smaller investors amongst us.
All fingers are not equal...na beg I de beg una.

My brother, thanks for coming to my aid. It is such brandish unrealistic figures that pushes some people into crime.
Sometimes I wonder if it is not a delibrate ploy to get people to declare their financial status while they sit back and profile the different responses, there is nothing some if these bad guys cant do.
Like chigo4u said, 200 to 300k is considered middle class in many cities. Me I know that with 200k to 300k in my place, your lifestyle will be considerably different from the average and many people will start transferring their own bills to you.

NL1960:
The way people brandished figures to paint Nigeria black is funny. I still pay less than 700k for a 3-bedroom flat with ensuite Master Bedroom in a good area. I stil use the car bought brand new in 2007. I have prepaid meter and i used average of 5k a month and that is even when my kids are at home as they are in boarding schools. Which kin September holiday?. I vacation in the village every December where i relax with authentic palmy with fresh fish from the great River Niger or correct bush meat.

So ahib and crew follow chop the money be that.

Barrytone:
PLEASE HELP ME ADD FUEL MARKETERS AS THE ARE THE GREATEST GAINERS ON THIS ADVENTURE

I am also waiting for how you arrived at Nigeria having the same rate of inflation as Zimbabwe and Venezuela?

TotoNaRubber:
It is an amount that corresponds to the Nigerian inflation system, ofcourse people can survive with N1000 per day but they are more exposed to certain avoidable health hazards in Nigeria, they can't afford to stay away from these hazards due to the state of the Nigerian inflation economy.

One gospel truth about Nigeria compared to a country where things are organized is health insurance, in Nigeria someone with kidney transplant issue requires a Church to raise N12million or so to travel to India but in an organized society someone with kidney transplant issue is only required to present his health insurance document which he pays a premium of N5000 equivalent a month for the same N12 million naira sugery in Nigeria so you see, inflation inflation.

Lack of health infrastructure, poor medical practioners. These things are still available in Nigeria but it takes us to the N40k per day.

You want to start comparing cost of health care in Naija to cost of health in organized society. NAija healthcare is cheaper, it is the quality nthat is low.
Also, for you to have a health insurance that covers kidney transplant you will be at a premium. Most insurance will not touch such situations from what I know

TotoNaRubber:
It is an amount that corresponds to the Nigerian inflation system, ofcourse people can survive with N1000 per day but they are more exposed to certain avoidable health hazards in Nigeria, they can't afford to stay away from these hazards due to the state of the Nigerian inflation economy.

One gospel truth about Nigeria compared to a country where developed country where things are organized is health insurance, in Nigeria someone with kidney transplant issue requires a Church to raise N12million or so to travel to India but in an organized society someone with kidney transplant issue is only required to present his health insurance document which he pays a premium of N5000 equivalent a month for the same N12 million naira sugery in Nigeria so you see, inflation inflation.

Lack of health infrastructure, poor medical practioners. These things are still available in Nigeria but it takes us to the N40k per day.

I understand that part, I was commenting on the part you said Naija is cheaper to live only that it is disorganized, so I am saying Europe will naturally be more expensive since you are paying for it being already organised

Nigsrdumb:
No I'm paying for insurance nothing to do with development.

Only covered when I'm in an accident , they don't pay me, they pay the other person involved in the accident if it's my fault or vice versa.

You are paying for the money spent on organizing that county. Just like you go buy singlet for shopping mall, u go pay for AC na, non be so?

Nigsrdumb:
Sir toto, this issues are the same everywhere, I pay 2600 euro per annum for insurance.

When I woke up this morning to check my car , some random stranger smashed my rear fog lights on my precious Toyota and ripped off part of the bumper.

My insurance does not cover that type of damage, also investigations can take up to a year

My point is that Nigeria is cheaper to live in, it's just very disorganized.

Good you are catching the drift. We all do not need 40k a day to live a decent life. A 40k a day expense may be a good to have but it is not a good lifestyle yardstick.

healthserve:
Boss calm down na


In Ibadan, yes, apartments can be gotten for even 300kper year but with which work in such vicinity? And other mede mede to go along Sir?


Yes, apartments are fairly affordable in Kubwa but yet again locality issues. If we use Jabi take make this analysis, you go see say TotoNaRubber wasnt wrong


To me the discuss is about the right amount to have to stay balanced and have an enjoyable life not that people don't exist below those earnings but just a fairly good lifestyle. And I'd say 1.2m isn't bad projection on monthly expenses in decent urban areas


BTW not everywhere with affordable housing is good to raise children. God knows I can't raise kids in environment where the environs would influence them negatively. Lai lai