₦airaland Forum

jedisco:
A properly built and maintained house wouldn't get dilapidated. It's stand for hundred years and over.

Moreso, with real estate, the house is not manytimes whats driving value- it's the land it sits on. A dilapidated house in cental Abuja would still sell for hundreds of millions

How many properly built houses do we have in Nigeria? Not up to 20% of new building are up to standard or code

I think location is a strong factor though.... Building residential houses around universities are more profitable if I may say because students don't owe just that the destruction rate would be high

Darkandhandsom:
Lol



Who told you and how did you come up with this
\\


lies

Leave them, the are looking for foolish argument to keep NL busy.

This here is Nigeria's problem... No long-term thinking....

Nigeria is already the most populous nation in Africa., and with the rapid birth rate, it will soon become the most populous nation in the world...

If everyone takes your advice and keeps building shops and plaza, there will be a very catastrophic housing issue very soon

There's already a serious housing issue in Lagos already..

Most are not landlords here, if you build house in ikorodu, you are on a long thing, 20 years you have not even recoup your money, because tenants would not pay rent on time, they would damage the house and still park while owing you for like 2 years.

come and build house in the city, room self contain is 1M yearly rent, ikorodu houses, a parlor can be as big as a football pitch, yet tenants would be paying peanuts, come to the city, a plot of 60 by 120 feet land can accommodate like 27 apartments, mix with like 20 room self contain and 6units of room and parlor self contain, mind you, room and parlor self contain starts from 1.8M yearly rent, maximum of 5-6 years you have recoup your investment.

when you build in new site, you go suffer, when you build in the city, even if the tenant delay in paying rent for like 2-3 months, surely the money would come and you will smile.

my friend had a land of 25 by 70 feet, he build a two story building on it a room self contain, 4 units per floor, totaling 12 units with a small shop, total rent value is 10M per year. build in good areas not in the bush.

Dpsychologist:
💬 Let’s talk — Are you still building flats in this economy, or have you switched gears?

Drop your thoughts. Let’s learn from each other. 👇🏽

So before you build yours...where were you living

CoronaVirusPro:
Your narrative is what has led many astray.

Which house do you want build for 50 million that will generate 5 million? 😂😂😂😂

A 2bedroom in ikota lekki goes for 4 to 5million ...how much dem use build the 2 bed ?? E no fit pass 10m without land

Building a house for rent can be highly profitable; however, factors such as location and maintenance play a significant role in making it unprofitable.

Property co-ownership can be a low-cost but highly profitable real estate venture. Follow the link below to find out more:

https://www.thinkmint.ng/buyrealestate/how-co-ownership-models-can-help-young-nigerian-professionals-enter-the-property-market/

CoronaVirusPro:
I think it’s just that people are bad with mathematics. Cos simple maths can show that it does not have a good ROI.

Build a house for 100M then wait for 20 years to reach profit! Common, many things you can do to keep the money working and finance any lifestyle you want to live.

It’s a false narrative that has been imbibed for years.

So if everybody follows your advice, who is going to build residential houses for rent? Do you understand what the after effect would be like?

I only have plans to build single rooms self-contained apartment for rentals

I have drive all my tenants, my house is empty now. Anytime I like I will just enter one of the rooms and sleep in peace.

Build hotel instead of house for rent...

bigcasava1:
I have drive all my tenants, my house is empty now. Anytime I like I will just enter one of the rooms and sleep in peace.

same with me if I have any issue with my wife I just enter there sleep 😁

The reality is not far fetched from the writer's point of view, but going for a residential building is just to tie your money and after some years when you're tired, you sell off the property. It's actually one business that the risk is calculated, I have 3 already though I'm not doing anything residential again after these but it's a fund tied down for pension, sell some and use some to eat when you don't have the power again

cr7lomo:
But the house still belongs to the owner.... u use 50m to build...collect 5m rent for 10years ... then sell it for 150m.... that's 150m profit in 10 years ....

with the N50 Million, if it is invested in the the safest form of investments which is the FGN Bonds at 18% and compounded for 10 years. the final figure is N280 Million. This is being modest. Remember i mentioned compounding. You can use a compound interest calculator to check this. FGN pays coupon twice a year. so compound it half yearly.

many guys have raked in over 100% in some select sound stocks in Nigeria this year. Doing ur due diligence and enter rightly will most likely profit you.

besides, liquidity and cash flow is key. that's what is missing in rental

bigcasava1:
I have drive all my tenants, my house is empty now. Anytime I like I will just enter one of the rooms and sleep in peace.

you can convert it into a short time hotel.
It is very profitable

Landlords, una done hear am na. Don't build residential houses when you can afford it, let us all go and live in the bush

Please move out quick. That wall dampness was what destroyed my hard copy pictures and some of my documents. You will just notice your things will start going bad plus the building will get worse and collapse someday.

airsaylongcome:
The OP mentioned something about leaking pipes. Whose job is it to fix in-wall leaking pipes? The tenant? Landlord go old. The building is the Landlord’s asset. If he has built nonsense, he should not expect the tenant to come rebuild for him. I’m currently suffering wall dampness in my rented accommodation and landlord doesn’t want to fix it. I dey laugh am. The wall will decay and rot, will pack out, and he will spend a huge sum to fix it. I’d rather buy a dehumidifier than fix a landlords wet wall

airsaylongcome:
The OP mentioned something about leaking pipes. Whose job is it to fix in-wall leaking pipes? The tenant? Landlord go old. The building is the Landlord’s asset. If he has built nonsense, he should not expect the tenant to come rebuild for him. I’m currently suffering wall dampness in my rented accommodation and landlord doesn’t want to fix it. I dey laugh am. The wall will decay and rot, will pack out, and he will spend a huge sum to fix it. I’d rather buy a dehumidifier than fix a landlords wet wall

It costs money to fix the house. Underpaying tenants won't get premium housing.

CoronaVirusPro:
I think it’s just that people are bad with mathematics. Cos simple maths can show that it does not have a good ROI.

Build a house for 100M then wait for 20 years to reach profit! Common, many things you can do to keep the money working and finance any lifestyle you want to live.

It’s a false narrative that has been imbibed for years.

that's if you are alive to reap what you saw

You want me to sell off my rented property because of this

missidy:
Please move out quick. That wall dampness was what destroyed my hard copy picture and some of my documents. You will just notice your things will start going bad plus the building will get worse and collapse someday.

Oh I am. I’ve already lost some very important clothes, shoes and all. Let’s not even talk about the health risk. Inside humidity is steady 85%. I’m definitely moving. Already looking for a place. The problem is that most of the buildings within 20km radius of where I currently stay all have the same issue. Might have to move really far for health sake

BolaAThubv:
So if everybody follows your advice, who is going to build residential houses for rent? Do you understand what the after effect would be like?

I never mentioned charity purpose. I stated for profit

openMind0:
It costs money to fix the house. Underpaying tenants won't get premium housing.

Landlords who build substandard properties cannot be demanding premium rents. Dehumidifiers cost less than half a million. I will buy three or 4 for each room/living room. The wall can decay all it wants. When it fails, landlord will spend way more

CoronaVirusPro:
I think it’s just that people are bad with mathematics. Cos simple maths can show that it does not have a good ROI.

Build a house for 100M then wait for 20 years to reach profit! Common, many things you can do to keep the money working and finance any lifestyle you want to live.

It’s a false narrative that has been imbibed for years.

I won't say it's a false narrative. It was s good narrative in the 60's, 70's and 80's when Nigeria's economy was more stable. But from the 90's when Nigeria's economy started a consistent decline, the argument for building residential property to rent got worse and worse and that argument got really bad in the last 10 years most especially.

CoronaVirusPro:
The most unprofitable business is building a house for profit.

Why spend 300m on a house you will have to wait for years to get to profit while maintenance keeps going on.

At 15 years, the house itself is already depreciating and only the land it sits on is appreciating, that’s even when you build in the right location.

Just sit that 300m in a money market account and start reaping profit instantly.

I don’t know who sold false narratives to people that building a house for rent purposes is profitable.

Very untrue
If u spending 300m on a residential house, u should make that money back within atmost 7-10 years using current market prices, + value of that land after that 10years, thats doubling ur money
E.g if u build a 3 storey apartment containing 4, 2bedroom and parlour per floor, at 1.2m per annum
I.e 16 apartments*1.2m= 19.2m annually
That project shouldn't cost u more than 120m start to finish

This is for locations where the rent is within this range
Higher rent locations the cost of building would be higher
Notice by 6th year, you've already gotten that money back
Na una wan build house for lekki where tenant get strength to drag matter for court with una
Leave lekki come mainland, satellite town, Peter nemesis, abuleado, u'll get more than that amount stipulated for rent

Dpsychologist:
💬 Let’s talk — Are you still building flats in this economy, or have you switched gears?

Drop your thoughts. Let’s learn from each other. 👇🏽

Any real estate that has ROI more than max 12 years is not worth investing in. The average ROI is 10 years.

alamscolo:
The reality is not far fetched from the writer's point of view, but going for a residential building is just to tie your money and after some years when you're tired, you sell off the property. It's actually one business that the risk is calculated, I have 3 already though I'm not doing anything residential again after these but it's a fund tied down for pension, sell some and use some to eat when you don't have the power again

I hope what you realize in Naira when you sell it will make sense. Houses in Nigeria are not always liquid. Sometimes you need money in 6 months and you start putting the house on the market. You may not get an offer that interests you till 12.months after. I notice Nigerians don't like houses somebody has lived in for many years, except to demolish for the land. We typically like new houses.

Who never build dey advise me not to build. Indomie and ingredients. 😂

SirLinks:
Very untrue
If u spending 300m on a residential house, u should make that money back within atmost 7-10 years using current market prices, + value of that land after that 10years, thats doubling ur money
E.g if u build a 3 storey apartment containing 4, 2bedroom and parlour per floor, at 1.2m per annum
I.e 16 apartments*1.2m= 19.2m annually
That project shouldn't cost u more than 120m start to finish

This is for locations where the rent is within this range
Higher rent locations the cost of building would be higher
Notice by 6th year, you've already gotten that money back
Na una wan build house for lekki where tenant get strength to drag matter for court with una
Leave lekki come mainland, satellite town, Peter nemesis, abuleado, u'll get more than that amount stipulated for rent

7 to 10 years right?

Do you know how many things I can do with 100M within that same time frame.

Everyone commenting is living in somebody's house.
Lol.

What an ideology.
People should also stop building houses in their villages cos they are mostly uninhabited.
Another lol.

COMPAQ:
I won't say it's a false narrative. It was s good narrative in the 60's, 70's and 80's when Nigeria's economy was more stable. But from the 90's when Nigeria's economy started a consistent decline, the argument for building residential property to rent got worse and worse and that argument got really bad in the last 10 years most especially.

I will agree with you. Then not now.

The calculations are not feasible now.