₦airaland Forum

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.

Harddiskng:
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.

CoronaVirusPro:
He bought land and built a house with 200m in what location? Cos it’s not feasible. A 200m house can not generate a 30m for you yearly, Except it’s in a commercial hub, where the land will be almost same price with the house.

acorntree:
They just dish out lies because they are not real landlord. Most landlords knows where it pains.Residential houses are not profitable business only use to tie money down for future. I and my sisters inherited 4 bedrooms flat after our father demise over 20years ago, till now is still one maintenance one after the other , tenant s don't even pay on time, story upon story. If not for commercial like renting it to churches or any other businesses forget about it , you're just helping humanity by doing charity for tenant. I'm even regretting building two flats for my family, with the purpose of renting one out to tenant but just locked it up because of wahala from tenant

Godfullsam:
I was discussing this issue of building house for rent with my wife the other day.
She wanted me to develop one of my land for tenants. I told her I don't fancy that idea because I don't see it as a profitable business as it will take years to recover the money recover the money invested talk more of profits.

She said at least our children will inherit the property.

I made her understand that the best I want to give my children is good quality education and moral/godly upbringing.

Every other thing na jara.

Citizen10:
Is it not a good thing that people build houses to provide shelter for others? Or have you forgotten so soon your elementary science that humans need three basic things to survive - food, clothing and shelter? Must everything be about profit? If you can build house and provide shelter for people to stay in, please do. All we are asking for is a roof over our heads please. It should not be seen as a profit making venture. Rather as a chance to advance the course of humanity......

alphaconde:
Op is 100% right.

Instead of house for rent covert to hotel or school

XtraFortunes:
Thank God people are finally thinking like me

10 years you will not make back the cost of erecting a 4 bedroom flat by giving it out for rent. Yet you will be doing repairs. Makes no financial sense anymore. Except for some special locations along major roads

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.

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. 👇🏽

Lovelife433:
May Allah have mercy upon you, for downgrading tenants. Every house own now was once a tenant somehow before owning a property. Even some landlords are demons to tenants.

lebete3000:
Laslas people go begin live inside their shops

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.

Citizen10:
Is it not a good thing that people build houses to provide shelter for others? Or have you forgotten so soon your elementary science that humans need three basic things to survive - food, clothing and shelter? Must everything be about profit? If you can build house and provide shelter for people to stay in, please do. All we are asking for is a roof over our heads please. It should not be seen as a profit making venture. Rather as a chance to advance the course of humanity......

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.

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.

Nefort:
The building also appreciates when renovated.

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

Omalicious1:
Why not make the rent monthly instead of yearly? And also all fingers aren't equal, so a landlord should consider building a house for low income earners and also for high income earners....one of the challenges of many Nigerians is that they want to live extravagantly even when they can't afford it, hence mounting pressure on people to foot their lifestyle bill

NoToPile:
Peter Imemesi - Nasco Estate

Silent Big Igbo men are in that estate.

biggz82:
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.