durojim007:
House,

I need help with the price of Laterite in ibeju lekki.

crestedaguiyi:
who can help me with information on how to get building plan approval in abia state.

Office address and phone number will be appreciated

durojim007:
House,
I need help with the price of Laterite in ibeju lekki.

sobastical:
I need suppliers of GRANITE, SHARP SAND AND DUST at a very reasonable price to be supplied at an on-going project in imota, IKD

Contact me on 08053548696

Mgbadike80:
Please, do you guys consider rental properties as a good investment considering the fact it takes sometimes almost 30 years to recoup the initial investment through rents or is it better to sell the empty land at a fantastic profit margin and call it a day. Please, give reasons for your answers.

diordaves:


In anything you do, value added is always more profitable. Just selling the land is just a premitive state. You add value by erecting a structure. Just exporting Cocoa produce is premitive and far less profitable than adding value into chocolate bar.

So how do you calculate the 'profit' of a building the way you asked? Do you need 30 years to get your money back? Certainly not.

When you calculate in such respect, you use the principle of amotisation, depreciation and residual value. But let's not go into all that.

Let's use a practical example. If you gave your contractor 40m to erect a structure for you, immediately your keys are handed to you, that structure is worth well over 40 million on completion. Fact.

So let's say for argument sake, on completion the building is now worth 80 million. Let's say it took you three years to complete.

So you calculate by dividing 80million by 3 years. So your building is 'making' over 26 million a year. So your break even point is under 2 years. This is the point you get your money back.

If on completion, your property starts losing value, then it may take 30 years to get your money back or not at all.

So the rent you generate, is just an extra income and there is a calculation for that as well to know if you are making profit. You use the Return On Investment (ROI) calculus.

Jerrypics:
See details below.

diordaves:


In anything you do, value added is always more profitable. Just selling the land is just a premitive state. You add value by erecting a structure. Just exporting Cocoa produce is premitive and far less profitable than adding value into chocolate bar.

So how do you calculate the 'profit' of a building the way you asked? Do you need 30 years to get your money back? Certainly not.

When you calculate in such respect, you use the principle of amotisation, depreciation and residual value. But let's not go into all that.

Let's use a practical example. If you gave your contractor 40m to erect a structure for you, immediately your keys are handed to you, that structure is worth well over 40 million on completion. Fact.

So let's say for argument sake, on completion the building is now worth 80 million. Let's say it took you three years to complete.

So you calculate by dividing 80million by 3 years. So your building is 'making' over 26 million a year. So your break even point is under 2 years. This is the point you get your money back.

If on completion, your property starts losing value, then it may take 30 years to get your money back or not at all.

So the rent you generate, is just an extra income and there is a calculation for that as well to know if you are making profit. You use the Return On Investment (ROI) calculus.

Kaybthaniels:
Please house help oo,

I need an idea of the required documents for a 3 bedroom flat approval, I had already got someone that works for LASBCA to help with the processing (He is actually the same guy that brought the paper from LASBCA saying we are building without permit from LASG), at first these were the list of documents I was asked to provide:

Original copy of Survey Drawing, Architectural drawing, Assessment sheet, Receipt of Payment of Assessment, Receipt of State Certification, Letter of Supervision/Structural stability from a COREN registered engineer & Non Destructive test report from Lagos State Materials testing laboratory.

Original copy of Survey drawing, Architectural drawing, Assessment sheet and Receipt of Payment of Assessment has already been provided, now he is back with a new list which I honestly find a bit sketchy, He is asking for, 2 passports photograph, Original Receipt of Purchase of Land, Original deed of Assignment, C/O, Stamp duty, Oath & Affidavit from high court, My question is that is this new lists of things he gave me truly needed as well or this is turning into something else?, Please anyone that has an idea please help!

diordaves:


In anything you do, value added is always more profitable. Just selling the land is just a premitive state. You add value by erecting a structure. Just exporting Cocoa produce is premitive and far less profitable than adding value into chocolate bar.

So how do you calculate the 'profit' of a building the way you asked? Do you need 30 years to get your money back? Certainly not.

When you calculate in such respect, you use the principle of amotisation, depreciation and residual value. But let's not go into all that.

Let's use a practical example. If you gave your contractor 40m to erect a structure for you, immediately your keys are handed to you, that structure is worth well over 40 million on completion. Fact.

So let's say for argument sake, on completion the building is now worth 80 million. Let's say it took you three years to complete.

So you calculate by dividing 80million by 3 years. So your building is 'making' over 26 million a year. So your break even point is under 2 years. This is the point you get your money back.

If on completion, your property starts losing value, then it may take 30 years to get your money back or not at all.

So the rent you generate, is just an extra income and there is a calculation for that as well to know if you are making profit. You use the Return On Investment (ROI) calculus.

Abdomox:


I am sorry to say, this analysis is wrong. When we talk about pay back period in Finance, we don't use the initial investment cost to analyze the way you did. The only amount you use is the salvage value of the property (for properties we've always agreed that the salvage value will be more than initial cost due to Land appreciation).

For instance, if you build a property of N40m today, and have an investment horizon of 5 years....all you need is Cash flow for all the 5 years.

Let's assume you rent out the property for 2m p.a, and assume the property will worth 60m after 5 years. The cashflows will be as follow:

Yr 0- Initial investment- 40m
Yr 1- Rent- 2m
Yr 2- Rent- 2m
Yr 3- Rent- 2m
Yr 4- Rent- 2m
Yr - Rent & Salvage Value- 62m

After setting this out, you will discount all these at prevailing discount rate (let's leave this).

In short, you don't breakeven based on appreciation of property yet to be disposed except rental income covers the initial cost. Note that the future rental income need to be discounted because one dollar of today is not of same value as tomorrow.

NL1960:




I was surprised myself at that his calculation of break-even point. Iam not a finance person but i can do simple thinking-based finance. If break-even point even used in property?.

Abdomox:


I am sorry to say, this analysis is wrong. When we talk about pay back period in Finance, we don't use the initial investment cost to analyze the way you did. The only amount you use is the salvage value of the property (for properties we've always agreed that the salvage value will be more than initial cost due to Land appreciation).

For instance, if you build a property of N40m today, and have an investment horizon of 5 years....all you need is Cash flow for all the 5 years.

Let's assume you rent out the property for 2m p.a, and assume the property will worth 60m after 5 years. The cashflows will be as follow:

Yr 0- Initial investment- 40m
Yr 1- Rent- 2m
Yr 2- Rent- 2m
Yr 3- Rent- 2m
Yr 4- Rent- 2m
Yr - Rent & Salvage Value- 62m

After setting this out, you will discount all these at prevailing discount rate (let's leave this).

In short, you don't breakeven based on appreciation of property yet to be disposed except rental income covers the initial cost. Note that the future rental income need to be discounted because one dollar of today is not of same value as tomorrow.

Kaybthaniels:
Please house help oo,

I need an idea of the required documents for a 3 bedroom flat approval, I had already got someone that works for LASBCA to help with the processing (He is actually the same guy that brought the paper from LASBCA saying we are building without permit from LASG), at first these were the list of documents I was asked to provide:

Original copy of Survey Drawing, Architectural drawing, Assessment sheet, Receipt of Payment of Assessment, Receipt of State Certification, Letter of Supervision/Structural stability from a COREN registered engineer & Non Destructive test report from Lagos State Materials testing laboratory.

Original copy of Survey drawing, Architectural drawing, Assessment sheet and Receipt of Payment of Assessment has already been provided, now he is back with a new list which I honestly find a bit sketchy, He is asking for, 2 passports photograph, Original Receipt of Purchase of Land, Original deed of Assignment, C/O, Stamp duty, Oath & Affidavit from high court, My question is that is this new lists of things he gave me truly needed as well or this is turning into something else?, Please anyone that has an idea please help!

Kaybthaniels:
Please house help oo,

I need an idea of the required documents for a 3 bedroom flat approval, I had already got someone that works for LASBCA to help with the processing (He is actually the same guy that brought the paper from LASBCA saying we are building without permit from LASG), at first these were the list of documents I was asked to provide:

Original copy of Survey Drawing, Architectural drawing, Assessment sheet, Receipt of Payment of Assessment, Receipt of State Certification, Letter of Supervision/Structural stability from a COREN registered engineer & Non Destructive test report from Lagos State Materials testing laboratory.

Original copy of Survey drawing, Architectural drawing, Assessment sheet and Receipt of Payment of Assessment has already been provided, now he is back with a new list which I honestly find a bit sketchy, He is asking for, 2 passports photograph, Original Receipt of Purchase of Land, Original deed of Assignment, C/O, Stamp duty, Oath & Affidavit from high court, My question is that is this new lists of things he gave me truly needed as well or this is turning into something else?, Please anyone that has an idea please help!

Abdomox:


I am sorry to say, this analysis is wrong. When we talk about pay back period in Finance, we don't use the initial investment cost to analyze the way you did. The only amount you use is the salvage value of the property (for properties we've always agreed that the salvage value will be more than initial cost due to Land appreciation).

For instance, if you build a property of N40m today, and have an investment horizon of 5 years....all you need is Cash flow for all the 5 years.

Let's assume you rent out the property for 2m p.a, and assume the property will worth 60m after 5 years. The cashflows will be as follow:

Yr 0- Initial investment- 40m
Yr 1- Rent- 2m
Yr 2- Rent- 2m
Yr 3- Rent- 2m
Yr 4- Rent- 2m
Yr - Rent & Salvage Value- 62m

After setting this out, you will discount all these at prevailing discount rate (let's leave this).

In short, you don't breakeven based on appreciation of property yet to be disposed except rental income covers the initial cost. Note that the future rental income need to be discounted because one dollar of today is not of same value as tomorrow.

momove4real25:
a survey plan is what a land surveyor will issue to u after a perimeter measurement of your land boundary is taken. Architectural drawing is what an architect will do to know the best structure suitable for land terrain. Assessment is done by the town planners working with the government after u might provided ur survey plan and land agreement or land receipt that has stamp duty on it. The stamp duty is carried out by revenue officers. U don't need oath except u have gotten approved plan form or c of o form that's where sworn oath is needed. First thing is survey plan to know size of ur land, follow by stamp duty on agreement, architectural drawing, them all payments receipt attached, form at town planning ofice, then ur approval is granted if they have inspected the site n see it that d structural won't constitute nuisance. If it were to be Ogun state now I wud have taken the job. But if u need c of o or survey or building approval in Ogun state environs u can contact me on 08161375559 or 08173359133

diordaves:


My analysis is just a very basic simplifying assumption. It is an academic exercise to explain the folly of holding rental income constant "to get your money back". Like you said, if a homeowner wants his/her money back, they have to dispose (sell) of the property. You cant eat your cake and have it. So my analysis is at what point can you dispose of the property and get your money back. And that is in year 2. It is not wrong.

I noticed you approached it using cashflow. That's all good, but at what point will he "get his money back"? Cashflow will not answer this question. If you must start out without the value of the property, which is all good, then surely in your cashflow, you must introduce variable and fix cost. So I can argue your cashflow falls short in answering the question "when will I get my money back"?

From cashflow, you can compute for break even point; the point(year) at which income (rental) equals cost.

But you see all these are just academic, semantics and financial jingoism. Non will stand the tax man or any financial reporting regulations including my analysis. It's more complicated.

Any homeowner who want their money back must sell the property at the right time. This is what I tried to explain.

lorhema:


I think you should go to LASBCA and find out their requirements. That way, you'll know if all is well or not.

diordaves:


My analysis is just a very basic simplifying assumption. It is an academic exercise to explain the folly of holding rental income constant "to get your money back". Like you said, if a homeowner wants his/her money back, they have to dispose (sell) of the property. You cant eat your cake and have it. So my analysis is at what point can you dispose of the property and get your money back. And that is in year 2. It is not wrong.

I noticed you approached it using cashflow. That's all good, but at what point will he "get his money back"? Cashflow will not answer this question. If you must start out without the value of the property, which is all good, then surely in your cashflow, you must introduce variable and fix cost. So I can argue your cashflow falls short in answering the question "when will I get my money back"?

From cashflow, you can compute for break even point; the point(year) at which income (rental) equals cost.

But you see all these are just academic, semantics and financial jingoism. Non will stand the tax man or any financial reporting regulations including my analysis. It's more complicated.

Any homeowner who want their money back must sell the property at the right time. This is what I tried to explain.

Kaybthaniels:
Please house help oo,

I need an idea of the required documents for a 3 bedroom flat approval, I had already got someone that works for LASBCA to help with the processing (He is actually the same guy that brought the paper from LASBCA saying we are building without permit from LASG), at first these were the list of documents I was asked to provide:

Original copy of Survey Drawing, Architectural drawing, Assessment sheet, Receipt of Payment of Assessment, Receipt of State Certification, Letter of Supervision/Structural stability from a COREN registered engineer & Non Destructive test report from Lagos State Materials testing laboratory.

Original copy of Survey drawing, Architectural drawing, Assessment sheet and Receipt of Payment of Assessment has already been provided, now he is back with a new list which I honestly find a bit sketchy, He is asking for, 2 passports photograph, Original Receipt of Purchase of Land, Original deed of Assignment, C/O, Stamp duty, Oath & Affidavit from high court, My question is that is this new lists of things he gave me truly needed as well or this is turning into something else?, Please anyone that has an idea please help!

b2212:
Good day all,

please what are the alternatives to POP ceiling in a modern house in nigeria.

thank you