₦airaland Forum

Its not only the landlord its the agents too.

Honestly federal and state governments needs to come together to stop the menace...

It's not everybody that'll do illegal works for a living..

Imagine calling million on an apartment and still want a responsible tenant

mactoni91:
This is one Area nobody is talking about...

The government isn't doing anything...

The Landlords are becoming ruthless...
Agents are becoming evil.

Your are uninformed. Government is actually doing something.

FG has reformed Land Use Act,

- henceforth landlords will be paying land rent

- Landlord will be paying insurance on their houses (You remember the scam third party vehicle insurance).

- Cost of building materials going up everyday due to costing of transportation and various taxes.

So, the FG is actually doing something about it.

Its just that you never start to dey see anything from this APC govt.

Nteogwuija:
State governments should just embark on building low cost housing estates and hand them over to private companies to manage them. It's another way for state gov'ts to generate revenue. Imagine a 2 bedroom flat in a gov't-owned estate rents at 1.5m while the privately-owned ones rent at 2.5m, and then people are moving in droves to these gov't-owned houses, no be anybody go advise the landlords again.

Unfortunately, state governors are only interested in what would give them returns during their tenures that's y they're mostly interested in building flyovers to collect kickbacks.

Good advice.

But did you also consider capital value?
One is on the fast lane of depreciation and the other on the fast lane of appreciation.

I bet a 100million worth of property must have increased to 20% more valuable at year end.

Quick check……

In 5year.
For your MONEY MARKET FUNDS 17% of 100m in 5years is 85million + Plus capital 185m

Let’s assume a reinvestment of 100Mx17%x5yrs reinvestment on year by year basic without a touch of capital and interest is 219,244,803.57 which is subjected to WHT and other deductions

Now a property worth 100m will be worth 20% if not more at year end and let’s say by 5yrs it must have achieved more than 100% value.

That’s 200M
You take up rent of 2m x 6flats like you said

That’s 12M/yr (x5yrs =60M)
Note that the rent is subjected increment of 20% every 2 years
That 40% in five year

NOW
Property Value 200m
Rent 60M
Rent Increment 60Mx40% = 4.8M
Total investment +Capi is 264.8M

Now let’s assure the person invested the rents collected on yearly basis for the next 5yrs on other trades or property or same money market funds you talk about.

Remember that one is fast to appreciate and the other to depreciate

Flesh10:
May we grow and make money in good health

Nteogwuija:
Thanks, boss. This is one of the reasons we use Nairaland - to learn from experienced people.

Flesh10:
Oga stfu

When you build a house is it instantly you make the money?

Everyone knows that building a house for rent is not a profitable venture.

If you want quick profit build hotels.

People build houses as legacy projects, retirement plans or a means of inheritance for their kids.

Its not money you seek to get back. It is money tied down for retirement where payment comes in as salary.

You all acting like once you build a house, sharp sharp U want to get the money back within 5yrs.

Stfu once again

You're just making noise for nothing and the guy you're replying is more sensible. If you put in capital in an investment, do you wait until you are old before you start reaping the benefits? Building houses for rent is also business like every other and amid the high cost building materials, such landlords deserve to make profit too

Flesh10:
Putting that millions into money market mutual funds would have been a profitable investment than building a house.


A money market right now pays 17% per annum.

Let's say you used 100m to build that house for example


Money market should give you return of 17m yearly (if interest rate remains the same) and your original 100m is still safe and secured.


Whereas building with that 100m let's say gives you 6 blocks of 2 bed apartment (I doubt but for instance)

Let's say each tenants pay 2m per annum

That should be 2m x 6 tenants= 12m per annum


You still have to do repairs, settle lawyers, settle land use charge and do all sorts of trouble and monitoring and still your initial capital is not certain of coming back.


You see why some of us choose to stick to money market investment instead of tying huge funds doing landlord and tenant wahala.

I don build my personal house, my family have a roof over their head so I am ok

If at all I need to build I will build hotels (unlikely sha) but for now mutual funds returns is what I use as my yearly rent from tenants

Thank u for your advice. Can you recommend me mutual fund with good interest in Nigeria. Thank u

Flesh10:
If interest rate cuts, you still have your original capital and by then your money would have compounded.


Mutual funds compounds. They pay interest for your capital and when the interest is added, it is compounded.


Wise investors use both naira and dollar mutual funds

Please what Nigerian bank offers the dollar mutual fund instrument ?

ecomallchemistt:
Please what Nigerian bank offers the dollar mutual fund instrument ?

Use fintech apps like cowrywise or bamboo.

Or you can use Bluenest owned by stanbic ibtc

R0LL0N:
Thank u for your advice. Can you recommend me mutual fund with good interest in Nigeria. Thank u

Check cowrywise

Omayie:
Good advice.

But did you also consider capital value?
One is on the fast lane of depreciation and the other on the fast lane of appreciation.

I bet a 100million worth of property must have increased to 20% more valuable at year end.

Quick check……

In 5year.
For your MONEY MARKET FUNDS 17% of 100m in 5years is 85million + Plus capital 185m

Let’s assume a reinvestment of 100Mx17%x5yrs reinvestment on year by year basic without a touch of capital and interest is 219,244,803.57 which is subjected to WHT and other deductions

Now a property worth 100m will be worth 20% if not more at year end and let’s say by 5yrs it must have achieved more than 100% value.

That’s 200M
You take up rent of 2m x 6flats like you said

That’s 12M/yr (x5yrs =60M)
Note that the rent is subjected increment of 20% every 2 years
That 40% in five year

NOW
Property Value 200m
Rent 60M
Rent Increment 60Mx40% = 4.8M
Total investment +Capi is 264.8M

Now let’s assure the person invested the rents collected on yearly basis for the next 5yrs on other trades or property or same money market funds you talk about.

Remember that one is fast to appreciate and the other to depreciate

Did you also consider factors like government decisions, building collapse, fire outbreaks and the ease of getting liquidity when you need to sell?

100m is a rough estimate I gave you. To build a reasonable apartment in a place that can quickly appreciate by that 20% you mentioned you and I know that cost of land alone will suck up about 40% of that 100m

And what can 60m build for you?

When I said 100m for build a block of 6 two bedroom flats, I was being cheerful with the quotation.
.

When I was a tenant I used to complain about how much rent the landlord was charging then my father passed away, I hit a deal then completed a transaction worth a lot.

Then I started renovating my late father's property comprising of a block of 7 flats with 3 bedrooms. For each flat I added Two new toilets and bathrooms making a total of three toilets and bathrooms. I did overhead tank with a tank for each flat, Installed pumping machine to the well. I changed the whole roofing, I tiled the whole building, each fecking space, did German floor, repainted the whole house. Did pop for the top floor, did screeding for some flats. I installed two new soakaway pits and one reservoir. I paid various taxes imposed on me by the govt.

Finally, the house looks new, I know how much I spent, if I had known what I knew I may not have done the investment but what is done is done. So now if I decide to charge something close to what I have invested, in fact just a fraction, somebody who knows not how I suffered and the pain I went through will say it's too much. Well if u can't pay please feck off. Make I see road.

Meet your government to reduce the price of fuel, then the price of materials will also decrease and then it will be a bit more affordable to build which then means rent will be cheaper too. Stop expecting a landlord to do bonanza for you. We too dey feel the pain of Nigeria. If you like vote for the present govt again, we landlords go increase our rent

Hungrychicken:
As someone said, how many tenants can continue to pay those expensive rent after it expires?

A very good question from a prudent individual 👍

With what u just said, u won't build house for rent.
If we all have that attitude, who will now build house for rent?
The bottom line is the the same attitude is what will make house rent more expensive. It's just economics ( demand and supply)

Flesh10:
Oga stfu

When you build a house is it instantly you make the money?

Everyone knows that building a house for rent is not a profitable venture.

If you want quick profit build hotels.

People build houses as legacy projects, retirement plans or a means of inheritance for their kids.

Its not money you seek to get back. It is money tied down for retirement where payment comes in as salary.

You all acting like once you build a house, sharp sharp U want to get the money back within 5yrs.

Stfu once again

But u live in nigeria?
How secure is the whole country?

kiddaz:
While you may be right but some of us care more for safety. Like no way will I live in certain places like Ikorodu,Mushin or such places even if I'm given a castle for free there.

router123:
But u live in nigeria?
How secure is the whole country?

Yes. True the problem of insecurity is general but certain places are not condusive for raising kids or even staying as an adult. For your second question, you should be asking the right authorities concerned not me though

yaroinside:
Source: https://yaroinsider.ng/landlords-making-life-unbearable-for-nigerian-tenants/

Whatever experience you are going through on the hand of your landlord, you only need to know your rights and how to assert it in Nigeria.

Bluearrow:
Who never build no go understand
I built a 4 bedroom bungalow recently I saw hell. Na make d house finish I con dey talk. Each phase was always far above budget because of high cost of building materials. Instead of blaming landlords, these people should be blaming government.

Everyone should stop blaming at all jare.

If na 1 room you fit afford, take am and be doing Snapchat inside. If na small 2 bedroom you dey manage, give thanks and be content.

And if it's an apartment on the outskirts and your destiny is demanding you to be in the main city, you're on your own ooo.