₦airaland Forum

NameChecker:
I know a tribe in Lagos, they are certified terror to house owners.
I would have mentioned their names but all I do is to check names not mention them.

Yes, na agbado tribe. Beans & Bread people

Your no1 is not correct.

According to tenancy law in Nigeria no matter how long a tenant occupy a property he/she must pay for the time spent on the property.


I refer that you watch some case on this on the justice court with Judge Fumi Ashaolu for better understanding.

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.

it's profitable. Just make sure you build it in america or Canada 🤔

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.

I don't think they are building it to make money. It seems they are building it to save money so their money wouldn't depreciate in the bank. The value of the rent, building and land appreciates with time and they can also decide to sell the building and get returns the same or higher than their initial investment. Building a house is still very much better than keeping the money in the bank.

If you finish discouraging people from building tenant houses the cost of house rents will definitely increase because demand will be greater than supply.

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. 👇🏽

My Mum have been complaining about tenants
I just get fed up .....
I have better things to do than deal with that stress
Houses here are monthly yet I no default
While in Nigeria it's yearly
It doesn't make sense to me

descarado:
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.

Maybe they have built houses.
Naso Nigerians be. Once they crossover, na to use bulldozer scatter the bridge. I doubt anyone builds a rental house for immediate profit. It is basic Maths that they won't recoup the money in record time. For many it is a store of wealth and for their generations unborn.

Dogalmighty17:
Looking at building a house just from the perspective of rent is rather myopic. Yes tenants may turn out to be problematic. While taking nothing away from building for commercial purposes, a house is a house whether for tenant purposes or commercial.

Instead of keeping the money in the bank, money expended in property is money that doesn't depreciate. The land the property sits on keeps increasing in value and possibly even the building itself.

If velocity of money is what you are looking at then a commercial property may be more ideal.

Can you tell us how much a land worth 20 million today plus 120 million for erecting apartments on it, plus cost of maintenance will worth in 15 years from today. Then compare it with what 140 million invested in money market today is likely to be worth in 15 years.

Nefort:
I don't think they are building it to make money. It seems they are building it to save money so their money wouldn't depreciate in the bank. The value of the rent, building and land appreciates with time and they can also decide to sell the building and get returns the same or higher than their initial investment. Building a house is still very much better than keeping the money in the bank.

You can buy the land and build warehouse or other commercial property rather than apartments. The default rates for warehouses and commercial rental is lower compared to apartments. In that way your land can still appreciate while you don't lose money.

You are wicked, kuku mention their names

pocohantas:
Maybe they have built houses.
Naso Nigerians be. Once they crossover, na to use bulldozer scatter the bridge. I doubt anyone builds a rental house for immediate profit. It is basic Maths that they won't recoup the money in record time. For many it is a store of wealth and for their generations unborn.

The thing tire me. The mentality is wa...ck.
Everywhere in this world,houses are built for long term gain while solving immediate accommodation problem for the populace.

Don't know if we are getting worst or better with our IQ.


How is baby?
I dey do omugwo here

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. 👇🏽

What do you mean by ROI
You want to eat. Your cake {have your house and a value as a physical asset)
A
And have it all the money u the money invested in the house to come to you

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.

Real estate have very low ROI, but it also has very low risk on investment. A business can liquidate fast, Real estate can't liquidate.
Landed property is generational investment.

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.

Any money coming in as house rent is still a profit, because the house worth 300m still belongs to the landlord, as a physical asset

He can sale it 300m plus the house rent collected so far, which is profit,
Think about it

chiboyjohn:
Any money coming in as house rent is still a profit, because the house worth 300m still belongs to the landlord, as a physical asset

That’s money buried into the ground. Many things can yield more than that, give you flexibility and save you the stress that comes with tenants.

Change4dbeta:
Real estate have very low ROI, but it also has very low risk on investment. A business can liquidate fast, Real estate can't liquidate.
Landed property is generational investment.

Land banking I still admire cos it has no running cost and less stress, but it still takes time to appreciate.

BlocksNG:
Coming from a former tenant. Live and let live.

I just tire .... This Nigeria people ehen just get money forget the rest syndrome

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.

If you are intelligent you will understand that houses are used as store of value and not for immediate profit.

The house I built in 2009 with just about 4m in a land of 2m is being priced at 35m today and I'm not selling because that is for my boys future when he finishes his academics.

People build to save money because shares in Nigeria is rubbish.

Building for tenants is "parking the money", not really investment.

You have 30m, but you can't invest it in a business because what is bringing the money does not give you time to oversee any business.

If you keep the money, it will depreciate. The only avenue to retain the value of the money or even appreciate without effort is real estate.

That's why I call real estate, parking the money, not investment

descarado:
The thing tire me. The mentality is wa...ck.
Everywhere in this world,houses are built for long term gain while solving immediate accommodation problem for the populace.

Don't know if we are getting worst or better with our IQ.


How is baby?
I dey do omugwo here

I would have thought everyone knows this. Some of them think they are smarter than the individuals with the millions. Lol!

Fine as always. Thanks for asking.
Ahh, jisike o. The work no easy at all.

Smartcitizen:
If you are intelligent you will understand that houses are used as store of value and not for immediate profit.

The house I built in 2009 with just about 4m in a land of 2m is being priced at 35m today and I'm not selling because that is for my boys future when he finishes his academics.

People build to save money because shares in Nigeria is rubbish.

Why not gold, platinum or silver. Must one bury millions into the ground in name of storing value.

Do I still need to emphasize that the house itself is losing value and only the land appreciates. A house of 100m in 1990 cannot be sold for its worth in 2025 of you exclude the land. Depreciation coupled with maintenance cost and tenant stress.

CoronaVirusPro:
Why not gold, platinum or silver. Must one bury millions into the ground in name of storing value.

Do I still need to emphasize that the house itself is losing value and only the land appreciates. A house of 100m in 1990 cannot be sold for its worth in 2025 of you exclude the land. Depreciation coupled with maintenance cost and tenant stress.

Okay ooo, also remember that one day that your gold can be stolen or the bank you kept it can be liquidated at the time you need it most.

Come and steal my house let me see you.

They are risk everywhere my dear but try to invest in things that has lesser risks in protecting it.

CoronaVirusPro:
I never mentioned charity purpose. I stated for profit

How did charity get into the discussion? Let me repeat myself just in case you didn't get it... If nobody invests in building residential houses for rent, where will millions of people live? Or is this part of your renewed hopelessness agenda to render 90% of urban-dwelling Nigerians homeless?

Eniitankorede:
It depends on where the land is located.

I guess u can expatriate more on that for us.

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.

You make a lot of sense. However note that Yields on Money market Funds can collapse if inflation falls and CBN begins to cut rates (MPR).
In Fact at one point during Emefiele's tenure Short term interest rates fell to single digits even as inflation was elevated due to Emefieles manipulation and financial repression tactics.

.

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.

I think this is how it works...

Build a house with 300m, then you can take loan of 100m from the bank with the house as collateral, banks are more willing to loan to landlords than tenants.

You can use the 100m to run your things, if the house appreciates in value you can even borrow more...

But the house won't appreciate unless you prove there is a high demand for people to (a) live there (b) do business there


My point is, most landlords won't wait for 80 years to reap their profit

You are very right
Our parents actually pushed that narrative that you must have a house bla bla bla...when you eventually do, it's actually bad business

Smartcitizen:
Okay ooo, also remember that one day that your gold can be stolen or the bank you kept it can be liquidated at the time you need it most.

Come and steal my house let me see you.

They are risk everywhere my dear but try to invest in things that has lesser risks in protecting it.

Does it mean a house cannot burn, get flooded or even collapse.

If you don't leave my house, I'll remove the windows, if you still refuse to leave ill remove the roof and if you think you are mad patapata I'll remove the doors. Let's see how you want to continue staying there.

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.

I don’t know what you people are talking about.

In my end of Lagos, developers are cashing.

My current apartment building, the developer used less than 200 million to build it about 3 years ago.

Every the developer is projected rake in N34,500,000 (yes you heard right, it is the number of apartments at the current rentage per year). The developer would make all his money back in less than 5 years and continue cashing out into the future forever.

The maintenance there is an yearly maintenance charge, all apartments that is even more than enough. To be repainting the entire house every year if thats what we want lol

Yes money market at 20% is alot but it wont give you an asset that is paying as much as it in rentage (remember inflating is increasing rent). While the asset itself increasing in value.

All the career developers are know, are heavy weight howbeit local they may seem. Whenever they show up all the “indigenes” of the area pay them mad respect. What sort of cashflow do think you need to be building at least two apartment buildings in a year. Omo! Even i respect them.

Dpsychologist:
At the end we end up having the same conclusion that it is only the land that appreciates.

Its better to buid and sell the property or rather give it to a company or business that to rent it out to tenants.

The building also appreciates when renovated.