₦airaland Forum

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.

IamANigerianMan:
Some of come to Internet to say rubish...tell me which business you can do to have the profit of N8m to N10m with N80m in year that is risk free like building... ?

vikstandon:
Bro, in the long run, buildings depreciate while land appreciates.

I’ve seen instances where people purchase structures only to demolish them and construct something new. Buildings eventually become obsolete. It’s wiser to build houses in locations where you can recoup your investment within a few years.

Several factors make people opt for virgin lands in cases where existing structures need to be torn down. These include the cost of demolition, the need for equipment like tractors, labor expenses, and the removal of debris.

You might not agree with my perspective, but that’s the reality as I see it. We’re all wired to think differently.

You need to be smarter. I have used this as my bargaining advantage. I no dey price you structure, most times I dey price land.

Oyelayor:
3 bedroom at 350k? How na

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

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.

aicon4s:
100m might be a lot to you but for some others it is not much of a value.

A 100m property that brings in only 3m annual returns of which part will still go into property maintenance, Meanwhile through that 100m property he got a loan of 500m and built an Hotel that is capable of raking in 50-80m per annum. You should know where his interest lies

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.

jmoore:
Read my post again. Build with your spare money.

I know some traders that their businesses stopped growing cos they invested 80% of their money into a building project.

Your current business should not lack funds because you are building a house.

SeaTrade:
You're better off buying fixed income packages from commercial banks or government with your N80m bros.Will pay you more and us also risk free in a sense.
House do burn down,get demolished or end up in disputes too..not entirely risk free.
And no N80m property is giving you 10m/Yr chief,doesn't exist.

aicon4s:
I used to have this mindset painted above until I had the opportunity to discuss with people that own such properties.
One of the best collaterals you can have as a business man is a landed property with a CofO.
With that 2 or 3 storey building worth 150Million you can have access to loan of up to N500 million.
The owners of those properties don't care about the Return on Investment (ROI) on the property, they see it as opportunity to access loans. That's why if you go to places like Onitsha and Aba you will see so many high rise residential buildings. Most of them have been mortgaged for loans.

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.

SeaTrade:
You're better off buying fixed income packages from commercial banks or government with your N80m bros.Will pay you more and us also risk free in a sense.
House do burn down,get demolished or end up in disputes too..not entirely risk free.
And no N80m property is giving you 10m/Yr chief,doesn't exist.

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.

Came4amod:
There is no fixed income package that makes sense .. and if you buy fromn thief's you will loose all your money .. if you fix 50m in the bank you will make 300k monthly.. 50m

If you can make 50m 300k is trash money to you .. so it don't still make sense

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.

VULCAN:
It's amusing that some people are limited to ONLY seeing the sweet side of investment and completely ignore the obvious downsides staring them in the face.

With the continued fall in the value of the Naira, what makes you think that N175M in 35 yrs time will be able to CLEAR just 2 containers from the port?

I said clear not import.

The Naira will continue to fall in value whether you like it or not as none of the billion dollar loans Tpain is swallowing are being reinvested into boosting production capacity.

Most farmers are suffering, almost all manufacturers are struggling and exporters are feeling serious pains yet you are hoping on a 35yr investment that will generate the same Naira at a grossly devalued rate

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.

Oyelayor:
3 bedroom at 350k? How na

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

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.

Arutan:
Building to rent is a form of investment called real estate milking till you are ready to sell. It’s the only business that doesn’t depreciate. It continuously appreciate. Hotels etc are riddled with a lot of management risks and running cost against a dynamic inflationary environment. Best is serviced apartment long lease when it comes to rentals.

IamANigerianMan:
Some of you that are poor are the one advising the rich, so how much you want have in a year?

bmasz:
The principle behind your post is solid but the maths you used is misleading.

Typically you want to invest in something that 10x in value within 10years.

Housing for rentals without any other value added to it doesn't cut it for a young man looking to quickly break even.

But, there are areas in Lagos and Abuja in which this logic doesn't hold true. Because of the cost of rentals in such choice locations you can easily recover the cost of investment within 7years.

But a more viable option would be using your property for a service apartment or as Air BnB.

Like I said, earlier your logic is sound. Just that the math you did, doesn't reflect the current reality in the country

MrGerald:
Depends on the location, most of the hotel you see are on lease or for sale

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

MrDoGood:
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

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.

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.

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.

Hinta:
This is Your Best Chance To Monitor and keep an eye on your Properties; House, Office, Hospital, Shop/Restaurant, etc. and keep a proper record of activities that occurred in your absence.

This Solar Panel Camera is Equipped with powerful LED bulbs bright enough to enable the camera to operate in full-color spectrum capturing clear pictures at night. It has an infrared vision that supports up to 10 to 30 meters at night.

The Solar Panel Camera is equipped with a microphone and a loudspeaker. This ensures that you can hear what is said around the camera and likewise speak back and be heard.

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.

sufficientfoods:
why would moderators allow such post make the front page. This is how they wrongly advice or discourage intending investors not to go into Building for rent . I must say that real estate still remain money bags for many wealthy people out there. Once you do your diligent job before investing which include , Location, rate of capital appreciate and accessibility , just sit back and watch those ROI trickle into your bank account. Lets not go into the business opportunity(Equity release) that building will bring in for you