₦airaland Forum

If a plot of land generates 1million per annum, has a yield of not less than 8% and payback of not more than 12 years would you consider that a good investment? If not what is your investment treshold?

I found thisinteresting article on Investing in Student Hostel you may want to take a look at it http://propertyinvestorng.com/service/in_hostel.html

gtrust:
With 25-30million one can buy a plot of land and build & furnish 4 3bedroom apartments.
Rents of approx 1million per apartment/annum means 4million and you could recoup your
money in say 2years max 3years.

Is this realistic or have I derailed?

Hostel wahala too much!

You would need to get a land at lekki to be able to command that kind 1m rent for a 3 bedroom flat.
Lekki land would cost you up to 40m add your construction cost of 25m and your total cost would be around 65m.

What is the reason for sale? and can I see the layout of a typical room?

Am interested in virgin land within Uyo and newly opened residential layouts. Do you have any and what is the price range? do you also have anything close to Uniuyo?

Dis Guy:
Bros o, this Aristo business model is not sustainable o,
what if the Aristo business plan vanish with time, 25 years ROI no be moi moi,

For where there would always be men footing bills for their smallees on campus. Nevertheless my plan is on affordable accommodation for most students (not for super rich big/RUNS babes) as such a room must not go for more than 100k per annum and I must be able to recoup my cost in at most 15 years.

There is a lot of cheating in the industry, to minimise this you need to be actively involved in the project. don't just give money to your builder for your foundation, let him give you a detail quote broken into material and labour. Negotiate his labour cost as best as you can, then go out benchmark material price, buy this on your own (your builder may accompany you so he can give you some advice on quality) and have them delivered to site. Start by buying about half of the materials he specified for the next stage of work, that way you can minimise excess, if more is required get the seller to deliver since you already know the price and your builder can confirm quantity at delivery (since your builder is not in charge of purchases he would do this quite well)

hugooh42:
How can one build a hostel of 16 rooms upstairs for 30 million? cos he said the land was 5million.Is this realistic?

why? you think it is too cheap?

Few Available

Dis Guy:
i dont know the kinda big gals we have in naija o especially outside lagos/phc
how much are these big girls paying? are you targeting Abuja or Lagos institutions?

Naija big gals on campus who don't come from rich homes have Aristos footing their bills and those without a standy Aristo do RUNs to make money.

This is how it looks on a 100 feet by 50 feet plot. The short side of the L can't take more than 1 student room so it makes better sense to make it bigger and place the restaurant, shops and caretakers room on the 2 floors.

hugooh42:
@Reflector How about building in "L" form ,if there is 8 rooms downstairs and upstairs (10 by10) add extra 2 rooms on the" L" wing,thereby making it 10 rooms up 10 rooms down on 100ft by 60ft land.By your estimate how much do you think this project will cost?.Excluding interior furnishing.

very rough estimate is as follows:
Foundation - 3M
Block work to decking - 750k
Decking - 3M
Blockwork to Roofing level - 750k
Roofing Woodwork - 1.5M
Roofing (long span plain aluminium) - 2M

Total: 11M just to get the structure standing. there are still plenty things to do before plastering such as door and window frames, electrical and plumbing pipings, ceiling board installation thereafter you can plaster.

After plastering you start the finishing doors, windows, electrical wiring etc etc.

I can upload a spreadsheet I use in planning my projects which shows the various stages etc.

omoola007:
why not build long rather than wide.  that way you can have more

Thanks I have updated the sketch putting 3 rooms side by side in a long design similar to that in your picture, from my calculation a 100ft long plot would take 7 on each floor, if I reduce the rooms to 10 x 10 it would take 8 rooms per floor. so for the 20+ room a 3rd floor may have to be introduced if the land is one plot or an identical building opposite if 2 plots.

(Note most plots of land are 100ft by 50ft except Lagos which uses 120ft by 60ft.)

hugooh42:
Will it not be better to reduce the size of the room, then have the bed suspended in the air, and the closet underneath or reading table.

Yeap that is a nice idea although it increases construction cost but on the long run could be more profitable since the current design can only fit in 7 rooms per floor on a land 100ft long

hugooh42:
I wonder why people are not contributing to these thread or don;t they see the profitability of these project?

don't worry not everyone likes to share their ideas but most want to tap what others have to offer and add to theirs.

hugooh42:
If i may ask Reflctor,are you are building engineer?

nope am not a building or civil engineer. although i studied another branch of enginering in school which am not even using. lol.

hugooh42:
I don't think such incident (cult fight)would make the students not to rent any.Rather if the hostel becomes notorious for such that should be when that will come to play.Every endeavour/investement have it's own risks but rather on dwelling on the risks we should be optimistic and hope for the best.Seriously since this thread started,i have gathered quite a lot and have already called home for land.

I guess screening of students you rent to becomes very important in order to weed out known cult members, another strategy is to to rent to ONLY  female students as female cults are usually not violent, distructive and few/absent in several campuses, but then these female students could be girl friends of cult members ahhhh.

Anyway I just did a conceptual design of how a typical student room could look like in the hostel, next stage is to see if I can fit 20 of these in a 1 storey building designed in an L-Shape on a 100ft x 100ft land while also including a restaurant with kitchen for meals, a provision store, a saloon (barber/hairdresser) as well as a room for the care taker.

Can you critic the design below as much as you can, so I can improve on it.

A friend who bought land close to a campus said he shelved the idea due to frequent cult activities. His fear is that once there is a cult fight in your hostel no student would rent it again?

okay so here I am populating a spreadsheet and trying to see if it is feasible to build a 20 room student hostel on 2 plots of land with 25M (inclusive of land of 5M). At this amount the cost of 1 room would be about 1.25M making it possible to rent each at not more than 100k to achieve a yield of 8% and a payback time of 12.5 years.

Hmmmm How realistic is this?

250k per annum. initial payment is for 2 years.

External view around the apartments

Below are internal pictures of one of the apartments, showing the sitting room & Dinning, bedroom, kitchen and bathroom.

I was talking to a colleague today who owns some commercial property and he stated that whatever commercial building one builds try and recoup your investment and make some profit within the 1st 20years, as buildings made out of blocks have a life span of about 25 years after which you may need to do some structural work to strengthen it. Also the PVC plumbing would start leaking inside walls and floors after a while once the gums used in joining the pipes lose their adhesive strength. Roofs sag as the wooden beams weaken making it necessary to change the entire roof, also electrical wires degrade after some years and may start overheating and could cause fires.