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Building For Renting Should Be Used With Your Spare Money - Properties - Nairaland 3g434f

Building For Renting Should Be Used With Your Spare Money (15463 Views)

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jmoore(m): 11:41am On Dec 08, 2024
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your .

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otipoju(m): 12:17pm On Dec 08, 2024
jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your .

I agree. The only building worth renting out are event centers if you do the maths.

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SUPERPACK: 12:35pm On Dec 08, 2024
You forgot that the building still belongs to you plus the rents coming in. Add it to real estate appreciation and that building will be valued at minimum of 100 million naira in 10 to 15 years time. Add it up and total value from that house in that 35 years will be about #170,000,000.

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jmoore(m): 8:56am On Dec 09, 2024
nlfpmod
jmoore(m): 9:03am On Dec 09, 2024
SUPERPACK:
You forgot that the building still belongs to you plus the rents coming in. Add it to real estate appreciation and that building will be valued at minimum of 100 million naira in 10 to 15 years time. Add it up and total value from that house in that 35 years will be about #170,000,000.


Read my post again. Build with your spare money.

I know some traders that their businesses stopped growing cos they invested 80% of their money into a building project.

Your current business should not lack funds because you are building a house.

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Hinta: 9:17am On Dec 09, 2024
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trendy001: 9:18am On Dec 09, 2024
Politicians do it with looted funds grin

7 Likes 1 Share

Oyelayor: 9:18am On Dec 09, 2024
3 bedroom at 350k? How na

The least you can get for 3 bedroom here is 800k. That's the least

37 Likes

uptownemmygee(m): 9:18am On Dec 09, 2024
True talk
Blizzy300(m): 9:19am On Dec 09, 2024
I Don plasta

1 Like

Glimpsetv: 9:19am On Dec 09, 2024

2 Likes

aicon4s: 9:19am On Dec 09, 2024
jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your .

I used to have this mindset painted above until I had the opportunity to discuss with people that own such properties.
One of the best collaterals you can have as a business man is a landed property with a CofO.
With that 2 or 3 storey building worth 150Million you can have access to loan of up to N500 million.
The owners of those properties don't care about the Return on Investment (ROI) on the property, they see it as opportunity to access loans. That's why if you go to places like Onitsha and Aba you will see so many high rise residential buildings. Most of them have been mortgaged for loans.

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Goodnewsforlife: 9:19am On Dec 09, 2024
jmoore:


Read my post again. Build with your spare money.

I know some traders that their businesses stopped growing cos they invested 80% of their money into a building project.

Your current business should not lack funds because you are building a house.
between a fallow land and a building

Which of them have appreciable value more in 10 years to come?

5 Likes 1 Share

004gist: 9:20am On Dec 09, 2024
The recent campaigns against investment in building is demonic. Asking those who are away not to return home to invest is demonic.
When i wanted to travel someon had to buy my land and that person happened to come from abroad.

15 Likes

kelvyn7: 9:20am On Dec 09, 2024
jmoore:
Spending 70 million naira to build a 2 story building 3 bedroom flats.

Put the rent at 350,000 naira per year for each flat in a location like Aba, it will take you more than 33 years to breakeven.

House for rent as an investment is what your children will enjoy, not you.

Use your spare money to build if you have excess cash.

If you have 80 million naira in your as a young man, don't use it to build that story building. Reinvest it in your business that gave you that 80 million naira.

You can buy land, but don't build until you have at least times 3-4 of the building budget in your .

I have said this countless times.
Agree with you.

6 Likes 1 Share

Monimaker22: 9:21am On Dec 09, 2024
I agree with this assertion, house for rent is very unprofitable in states like Lagos, Tenant and their wahala, reinvest in your business that gave you that money, that's the point.

6 Likes

TimiofAbuja: 9:21am On Dec 09, 2024
as a young man 80 million your lol
please what is the definition of a young man

is rent that cheap in Aba that such house will go for 350K?

just curious........oooooooo

5 Likes

Talkisneeded(m): 9:22am On Dec 09, 2024
Maybe one day, we will be part of discussions like this,I sell herbs

3 Likes

Atuero(m): 9:22am On Dec 09, 2024
It all depends on the or

Break even shouldn't take more than 15 years

1 Like

ecomjourney: 9:23am On Dec 09, 2024
Absolutely.

Invest my 80 milla in fast moving business and use the proceeds for real estate investment (Event center, shops).

Wash. Rinse. Repeat.

4 Likes 2 Shares

BoldBrainz(m): 9:24am On Dec 09, 2024
This is basically why real estate investors now prefer to build hotels that bring in daily revenue, instead of apartments that recoup annual earnings.

15 Likes 1 Share

ZACHIE: 9:24am On Dec 09, 2024
Hmm.

Don't listen to that nonsense o.

Build that house, bro.

In all you do, retain value for that 70m million. Don't save it in a bank. Be careful which business you do with it.

That house will retain the 70m come what may for ever.

And it is poor thinking saying 350k/annum is what the rent will be in 33 years. Who taught you business?
The house you are living now, how much did you rent it last year, how much is it today?

Build that house. Retain the value of that money. Stop listening to BS.

The hit the Naira took in 2 years should make you learn a big lesson

64 Likes 3 Shares

Sccarrr: 9:24am On Dec 09, 2024
Not totally true

4 Likes

Arutan: 9:25am On Dec 09, 2024
SUPERPACK:
You forgot that the building still belongs to you plus the rents coming in. Add it to real estate appreciation and that building will be valued at minimum of 100 million naira in 10 to 15 years time. Add it up and total value from that house in that 35 years will be about #170,000,000.

Nothing can be compared to real estate investment if you know what you are doing.
In 2023, i bought a 3 bedroom property for N32m, renovated it to taste with N6m , put it back for sale into the market this year. Some buyers came , priced it for N60m -N65m but i declined, i waited till a buyer came and bought it for N79m. Just within a year. I have used this part of the sales proceeds to purchase another 3 bedroom in another location nearby for N40m and started renovation. It will go into the market in 2025/2026. Real estate fetches you bulk millions and there are few businesses that can match it. It secures you firmly with minimal risk. Just ensure you buy in a genuine and approved location. Avoid fraudsters at all cost. Do thorough and meticulous investigation before you part with your money to purchase any property.

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wunmi590(m): 9:25am On Dec 09, 2024


You are right, but not all locations, places like lekki phase1 where houses are very expensive, you can recoup your money back in 5-10years..

But some locations where houses are very cheap, yes it will take time to breakeven..

From the little your tenant are paying is what you will also budget to renovate the house often time, most especially, if you have a bad tenants, who use house like pigs

5 Likes

BoldBrainz(m): 9:25am On Dec 09, 2024
004gist:
The recent campaigns against investment in building is demonic. Asking those who are away not to return home to invest is demonic.


Nobody is asking your father not to build apartments for rent. It's just more economically viable to invest sums in other ventures instead of buildings that some lackadaisical tenants will eventually deface, as if they can mould a bag of cement into blocks.

10 Likes

topsy23(m): 9:26am On Dec 09, 2024
Can not be up to 30yrs in Lagos
jikjimmy: 9:26am On Dec 09, 2024
This is a brilliant submission. Be intentional about the building of your business to gain higher financial ground before venturing into building houses for rent

3 Likes

iLoveYouToo(m): 9:26am On Dec 09, 2024
Oyelayor:
3 bedroom at 350k? How na

The least you can get for 3 bedroom here is 800k. That's the least

Are you at Aba?
Skillsnigeria: 9:26am On Dec 09, 2024
Noted
Kaybee14(m): 9:27am On Dec 09, 2024
OP, your opinion is noted.
the location of the such building might bring a faster ROI than the number years you stipulated.

Anyway, for your quality stone coated roofing tiles and Aluminum roofing sheets;
Check my signature below.
vikstandon(m): 9:27am On Dec 09, 2024
Goodnewsforlife:
between a fallow land and a building

Which of them have appreciable value more in 10 years to come?



Fallow land. But the issue there, is that it might be revoked, if you fail to develop it. And if you are unlucky to have Pharaoh wey no sabi Joseph.
Somebody like Wicked Wike will revoke it.

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