₦airaland Forum

This is not a good advice

this analysis does not factor inflation, naira devaluation, renrt increase etc.

jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your account as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your account.

I disagree. I disagree. When you build on your land, you incrrase the value of that area... Aside that if you want to do land banking you are losing on that property. Imagine buying a land for 100m and you want to resell the land in 20 years time, you decided to build a house worth 200m on it making it 300m,after 20 years that land alone will worth about 300m imagine your profit is also inclusive of the re ts you received on it.

004gist:
i know ur mother n father didn't built one. So u have no right to campaign telling people not to invest in something that could last for a minimum of 100 years and its assured is never a waste

Aloysius, close your mouth dia ! How did you even find this thread? People are discussing landed investments and you wey dey squat for your friend bacha dey put mouth!

otipoju:
I agree. The only building worth renting out are event centers if you do the maths.

Short lets is also good if it is in good location. Place it on Airn&b

jayce232:
How will someone invest 100m in a project & won't care about return on investment?? Except the person is a politician looting funds! Is it everyone that is interested in taking loans? If u have built a house for rent with slow ROI & wahala coming from troublesome tenants, u will not make the bold statement.

It's mainly about retaining value. Real estate helps u return value overtime

BoldBrainz:
Aloysius, close your mouth dia ! How did you even find this thread? People are discussing landed investments and you wey dey squat for your friend bacha dey put mouth!

You wan kill Aloy

Oyelayor:
3 bedroom at 350k? How na

The least you can get for 3 bedroom here is 800k. That's the least

Where I lived before 3 bedroom na 1.5m naira per year

500k for caution fee, agent and agreement 500k

A room self contain was 250k

Let's say you have 3 bedroom like 5 tenants

Is that not 7.5m per year? In 10yrs you have gotten like 75m and the value of the land would be nothing less than 75m in that 10yrs


What Op should have said is investing in a better area

Real estate in a good area is the best investment you can ever do

pocohantas:
- It is an old building.
- It is at express.
- You have once expressed your unwillingness to pump ordinary water for your tenants.
- 300k is just fine for that arrangement.

I was hoping you could get me a new house in the locations I mentioned for 350k.

If you want more for your building, renovate it and give your tenants water. I don't know why Aba landlords see water as luxury.

I think you should have said I made an understatement.

Secondly, the pumping water issue wasn't about our house. That was a neighbor.

Water is luxury when tenants waste water.

Landlord coming out at midnight to flood the streets with wastewater from soak away because it is filled as a result of wastage of water by tenants.
The ones you don't notice is because they have gutters in front of their houses which they can easily channel the waste water to.
If sanitation agencies were working well, those landlords go hear whiiinn.

Arutan:
Nothing can be compared to real estate investment if you know what you are doing.
In 2023, i bought a 3 bedroom property for N32m, renovated it to taste with N6m , put it back for sale into the market this year. Some buyers came , priced it for N60m -N65m but i declined, i waited till a buyer came and bought it for N79m. Just within a year. I have used this part of the sales proceeds to purchase another 3 bedroom in another location nearby for N40m and started renovation. It will go into the market in 2025/2026. Real estate fetches you bulk millions and there are few businesses that can match it. It secures you firmly with minimal risk. Just ensure you buy in a genuine and approved location. Avoid fraudsters at all cost. Do thorough and meticulous investigation before you part with your money to purchase any property.

😉🙌

Goodnewsforlife:
between a fallow land and a building

Which of them have appreciable value more in 10 years to come?

It seems you ppl don't read to understand.

He didn't say you should not build house.
His main point is, if you're hoping to generate money from that rented apartment to grow your business, that is not a good idea.

He suggested that instead of building that commercial house, reinvest that money into that business that generated that amount so that it will generate more that when you remove the money to build that house, the business will not be grounded.

The Op should have advised people to build in areas where there is good road network, constant electricity and security, instead of discouraging people from building for rent. Any who factors all these and the location, will get ROI in 7 - 10 years.

BoldBrainz:
Aloysius, close your mouth dia ! How did you even find this thread? People are discussing landed investments and you wey dey squat for your friend bacha dey put mouth!

Nigerians should not invest in properties.. What then should they invest in?
Hungry man like u weh never see 1m d advice people weh d manage 200m.

Willie2015:
Very myopic
View to investment...
You build for rent purpose..
To diversify your streams of income....
Business can collapse in this volatile environ.....

You are missing the point buddy.
It's better to buy land that will appreciate.
But building for rent is not the best of investment decision.

Oyelayor:
3 bedroom at 350k? How na

The least you can get for 3 bedroom here is 800k. That's the least

Quoting the price of 3 bedroom flat at Aba at 350k is the type of statements that makes me not to quote such people. With that, you should know he has neither built a house not has the 70 million being mentioned.

Perhaps, someone should remind the mumu that the rent even at 350k will not remain like that for 33 years.

Monday morning nonsense on Nairaland

jmoore:
If you add inflation, it's almost the same.

😂😂😂😂

This is one bad advice badly placed...

SUPERPACK:
You forgot that the building still belongs to you plus the rents coming in. Add it to real estate appreciation and that building will be valued at minimum of 100 million naira in 10 to 15 years time. Add it up and total value from that house in that 35 years will be about #170,000,000.

Sir read what he wrote again.

People don't understand.

If you reinvest the 70m into your business, it won't take a 2 years to double the funds. So, why wait for 30 years?

mykalls:
The Op should have advised people to build in areas where there is good road network, constant electricity and security, instead of discouraging people from building for rent. Any who factors all these and the location, will get ROI in 7 - 10 years.

It is only a fool that will take an advice from ignorant people. Ignorant to assume a 3 BF at Aba is 350k. Ignorant to assume that the rent will not increase in 33 years. Ignorant to assume that he will be in a better position to advice someone with 70m.

MrDoGood:
Sir read what he wrote again.

People don't understand.

If you reinvest the 70m into your business, it won't take a 2 years to double the funds. So, why wait for 30 years?

And what makes you think the 70m cannot dissappear in a year if a business jams bad wheather?
If you are in business, you will know there are several factors that can send a thriving business man back to his village within a twinkle.

MrDoGood:
Sir read what he wrote again.

People don't understand.

If you reinvest the 70m into your business, it won't take a 2 years to double the funds. So, why wait for 30 years?

my bro business is not like dat. Those gains comes gradually. Inside that 70m there will be loses and gain.
I do say it's safe to build gradually with that funds.
When building, location, finishing of the house matters, it will make the rent to be high

kelvyn7:
You are missing the point buddy.
It's better to buy land that will appreciate.
But building for rent is not the best of investment decision.

There is no best investment decision...
Cos each has its own ups and downs...
The key thing is having a diversified portfolio...
And managing risks with each asset class and continually
allocate resources based on perceived risk...

ppogba:
And what makes you think the 70m cannot dissappear in a year if a business jams bad wheather?
If you are in business, you will know there are several factors that can send a thriving business man back to his village within a twinkle.

Yeah. Did you read where he said buy a land?

And what makes you think the government can't take over the land by demolishing your house. Take Lagos for example.

There's risk in everything.

I've said to myself I'll go all in into property next year.

Just flip your money. But never build for rent.

Instead of rent, build a hotel/guest house.

More than enough, then i can build for rent.

But a property, renovate and sell. Money flip with good ROI

004gist:
Nigerians should not invest in properties.. What then should they invest in?
Hungry man like u weh never see 1m d advice people weh d manage 200m.

Aloysius, go and warm eba .

MrDoGood:
Yeah. Did you read where he said buy a land?

And what makes you think the government can't take over the land by demolishing your house. Take Lagos for example.

There's risk in everything.

I've said to myself I'll go all in into property next year.

Just flip your money. But never build for rent.

Instead of rent, build a hotel/guest house.

More than enough, then i can build for rent.

But a property, renovate and sell. Money flip with good ROI

Thank God you know there is risk in everything.

Best of luck in your ventures.

Not entirely correct. Houses do not appreciate in value over time, on the contrary, they depreciate. It's the land that appreciates in value over time. If you factor in the maintenance cost of keeping the house afloat, you'd be talking about half of that amount in net worth.

SUPERPACK:
You forgot that the building still belongs to you plus the rents coming in. Add it to real estate appreciation and that building will be valued at minimum of 100 million naira in 10 to 15 years time. Add it up and total value from that house in that 35 years will be about #170,000,000.

story, bought land for 12M, the land was 24 feet by 70 feet. built 12 unit of room self contain on the land with one shop. rent 800k each and shop 350k. first payment was
800k rent
agent and agreement 300k,
damages 50k
service charge 50k
shop rent 350k
agent and agreement plus service fir shop 150k

50k was paid out as agent for every room rented out. So owner got 1,150,000 each per room self contain and 500k for shop


1,150,000X12+500,000=14,300,000


30M-35M was spent building the house.
Maximum of 5 years the owner would recover his money, and get the building is appreciating.

Rplamer12:
my bro business is not like dat. Those gains comes gradually. Inside that 70m there will be loses and gain.
I do say it's safe to build gradually with that funds.
When building, location, finishing of the house matters, it will make the rent to be high

I get your point sir.

I've weigh this topic years ago. Using my father as an example.

It still won't take 30 yrs to get your capital back because you need to spend some funds in renovation.


Building a hotel or guest house is good ROI than house for rent. I rather flip the money on landed property and maybe buy property renovate and sell

jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your account as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your account.

Rental properties are like insurance... U can make small profit, it's dependable and you can sale off relatively easily

jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your account as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your account.

This is 100% correct, as a home owner myself

Oyelayor:
3 bedroom at 350k? How na

The least you can get for 3 bedroom here is 800k. That's the least

Houses are super cheaper in ABA and Onitsha... Supply is too much