NewStats: 3,261,366 , 8,173,801 topics. Date: Thursday, 29 May 2025 at 02:45 AM k1v6u

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 .

To me, income from Building is meant To take care of you at Retirement
when you no longer have the Strength to Earn from Daily Hustle.....

I see it as a pension plan (even though you can earn from it before retirement).
if your Kids Abandon you, or are Struggling themselves, you need not depend on them in Old Age since you still have a Vibrant Source of income and at the same time it serves as an Asset for the Kids when you are No more

It's like FIXING your money in the Bank.
It's like Keeping a Big Amount Aside for yourself to Guarantee your Old Age when you could be All alone financially.

Lastly, the best time to keep that money aside is Now...
when you have it in your Vibrant Working Years Window.
The Window is not Open for too Long

Every Wise man Should Grind out that Money now and Keep it to Avoid Matters that Touch ...
Old age can be very Lonely...financially, especially for men

IamANigerianMan:

Some of come to Internet to say rubish...tell me which business you can do to have the profit of N8m to N10m with N80m in year that is risk free like building... ?

You're better off buying fixed income packages from commercial banks or government with your N80m bros.Will pay you more and us also risk free in a sense.
House do burn down,get demolished or end up in disputes too..not entirely risk free.
And no N80m property is giving you 10m/Yr chief,doesn't exist.

vikstandon:


Bro, in the long run, buildings depreciate while land appreciates.

I’ve seen instances where people purchase structures only to demolish them and construct something new. Buildings eventually become obsolete. It’s wiser to build houses in locations where you can recoup your investment within a few years.

Several factors make people opt for virgin lands in cases where existing structures need to be torn down. These include the cost of demolition, the need for equipment like tractors, labor expenses, and the removal of debris.

You might not agree with my perspective, but that’s the reality as I see it. We’re all wired to think differently.

You need to be smarter. I have used this as my bargaining advantage. I no dey price you structure, most times I dey price land.

Bro
Land with a structure on it is priced higher than similar sized land in same location with no structure on it.
Also, land with a recent structure on it is priced higher than land with an old structure on it

Oyelayor:
3 bedroom at 350k? How na

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

He said in Aba.

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.

Maybe you just did the theoretical aspect not practical, you forgot depreciation and maintenance money, lols building na waste speaking from experience

aicon4s:


100m might be a lot to you but for some others it is not much of a value.

A 100m property that brings in only 3m annual returns of which part will still go into property maintenance, Meanwhile through that 100m property he got a loan of 500m and built an Hotel that is capable of raking in 50-80m per annum. You should know where his interest lies

You keep chanting this your borrow stuff.
Bank loans come with something called interest, they're not free.
Last I checked is 35%.
It's incredibly unwise to borrow money in today's Nigeria.
I'm in luxury business and I can't even afford to borrow,so I run the business with my equity.
Then I'd take 100m from it,go one place build house for rent to use as collateral to get 500m loan I'd be paying 175m for yearly?
Also no bank go give you such credit cos you own house that they can't even sell,
Na your track record or turnover dey talk

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.

I quite agree with you. It seems many don't know how sweet real estate regular income is .

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.

The estimated cost to build the house and the estimated cost for rental does not add up.

SeaTrade:
You're better off buying fixed income packages from commercial banks or government with your N80m bros.Will pay you more and us also risk free in a sense.
House do burn down,get demolished or end up in disputes too..not entirely risk free.
And no N80m property is giving you 10m/Yr chief,doesn't exist.

Nice Alternative.
But You will need to Make sure 1 or 2 TRUSTED people(THAT WILL NOT KIDNAP YOU) in your family know about the Investment.
just in case of sudden death.
if not BOTH, the Investment ASSETS + the JUICY Returns will be Gone.

i don't know if you have heard any sorry about people trying to claim their father's Money from the bank after his Demise, It's 1000% frustrating.

aicon4s:


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.

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 .

You don't even have a clue why people build .. you build to compound wealth . If you keep that cash .. it's going to be exposed to market forces .. you own a building it will remain valuable and appreciate.. without any ties to the market forces .. so thats why you must delete rent .. and renting is stressful .. u will be living in a barracks when u can have a whole compound to yourself .. I hate renting with ion .. if you eat chicken your neighbors will know instantly . If you no on gen.. baba is broke.. if you kill goat for Xmas .. please give me the head and leg...You say no .. next year the plan and steal the goat .. I have not enjoyed myself till I moved into in small apartment... Even if na garri I drink I drink it happily and I am under no financial pressure to be look for rent money. as a young man. Quickly build and reduces stress so you can think well... Thats my view

SeaTrade:
You're better off buying fixed income packages from commercial banks or government with your N80m bros.Will pay you more and us also risk free in a sense.
House do burn down,get demolished or end up in disputes too..not entirely risk free.
And no N80m property is giving you 10m/Yr chief,doesn't exist.

There is no fixed income package that makes sense .. and if you buy fromn thief's you will loose all your money .. if you fix 50m in the bank you will make 300k monthly.. 50m

If you can make 50m 300k is trash money to you .. so it don't still make sense

Arutan:

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.

Came4amod:


There is no fixed income package that makes sense .. and if you buy fromn thief's you will loose all your money .. if you fix 50m in the bank you will make 300k monthly.. 50m

If you can make 50m 300k is trash money to you .. so it don't still make sense

50m go easily give you 1m/month.
Nobody is selling credit to any bank right now less than 24% when CBN itself is selling to them at 27,5% .
I wonder how you got 300k

It's amusing that some people are limited to ONLY seeing the sweet side of investment and completely ignore the obvious downsides staring them in the face.

With the continued fall in the value of the Naira, what makes you think that N175M in 35 yrs time will be able to CLEAR just 2 containers from the port?

I said clear not import.

The Naira will continue to fall in value whether you like it or not as none of the billion dollar loans Tpain is swallowing are being reinvested into boosting production capacity.

Most farmers are suffering, almost all manufacturers are struggling and exporters are feeling serious pains yet you are hoping on a 35yr investment that will generate the same Naira at a grossly devalued rate

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.

VULCAN:
It's amusing that some people are limited to ONLY seeing the sweet side of investment and completely ignore the obvious downsides staring them in the face.

With the continued fall in the value of the Naira, what makes you think that N175M in 35 yrs time will be able to CLEAR just 2 containers from the port?

I said clear not import.

The Naira will continue to fall in value whether you like it or not as none of the billion dollar loans Tpain is swallowing are being reinvested into boosting production capacity.

Most farmers are suffering, almost all manufacturers are struggling and exporters are feeling serious pains yet you are hoping on a 35yr investment that will generate the same Naira at a grossly devalued rate

Have you ever seen house rent reduce in price? Never. Even if naira drop to 5000 per dollar, rent will increase to meet up too. Just as it is now rent have doubled between last two years and now. So building must appreciate

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 .

100% correct. Developers build with Bank loan money. Not personal savings.
That 33 years to break even is a conservative estimate. Tenants in Nigeria are notorious rent defaulters. I know some landlords in Lagos borrowing money to eat and pay school fees.

Oyelayor:
3 bedroom at 350k? How na

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

Don't mind him,, you can't even get standard selfcon with 350k

Here in pH 2bed is from 1.5 and above.

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 .

1. Land and building do appreciate as well, especially If it at good location. The land/house you build with 50m today might worth 200m in next 15 years.

2. Rent at good location is now too expensive in Niegria, so when the family responsibilities and other life expenses show up in future, you might unable to pay your rent again.

3. Building houses for business is one sure business that hardly fail. You can lose all your furtunes in a business but income from real estate is guarantee.

4. Real Estate is good for retirement package. There will be a time you won't have strength to pursue business, the rent from your houses will surely take care of you as an old man.

5. Lastly, if everyone think like you, where will you be living? If everyone focus on business and refuse to build houses, will you be living on the tree?

I know a few old men who has lost everything but sold some properties to live best for the rest of their lives. Real Estate investment is superb, don't ever underestimate it to avoid future regret. I know how which I have lost so far doing businesses, if I had wise enough to builtt 5 set of room and perlor self con, I should be making nothing less 2 millions naira as side income annually by now.

What is service apartment?

Arutan:


Building to rent is a form of investment called real estate milking till you are ready to sell. It’s the only business that doesn’t depreciate. It continuously appreciate. Hotels etc are riddled with a lot of management risks and running cost against a dynamic inflationary environment. Best is serviced apartment long lease when it comes to rentals.

IamANigerianMan:


Some of you that are poor are the one advising the rich, so how much you want have in a year?

Oga, you don't know me before, so I assume that you speak from a place of ignorance. The Op is right, in a way. Considering the short term, putting all that money away in building a house for rent is a waste of funds, especially where this would affect the builder's business . I'm a landlord, and I clearly understand him. The funds should be reinvested into the same business that brought the #70m in the first place in order to make more money. Personally speaking, the least I can do with that money in a year is to double it if I put it back in business.

In conclusion, being a landlord of a multiple-storey building with apartments to rent out is very cool, but considering the short-term ROI,then it's not a very nice investment.

What is Air BnB?

bmasz:


The principle behind your post is solid but the maths you used is misleading.

Typically you want to invest in something that 10x in value within 10years.

Housing for rentals without any other value added to it doesn't cut it for a young man looking to quickly break even.

But, there are areas in Lagos and Abuja in which this logic doesn't hold true. Because of the cost of rentals in such choice locations you can easily recover the cost of investment within 7years.

But a more viable option would be using your property for a service apartment or as Air BnB.

Like I said, earlier your logic is sound. Just that the math you did, doesn't reflect the current reality in the country

So most of the hotels am seeing, are on lease? Pls explain this lease?

MrGerald:
Depends on the location, most of the hotel you see are on lease or for sale

What do you mean by value in this situation?

Lifemanage:

It's mainly about retaining value. Real estate helps u return value overtime

What do you mean by "landed property"?

MrDoGood:


I get your point sir.

I've weigh this topic years ago. Using my father as an example.

It still won't take 30 yrs to get your capital back because you need to spend some funds in renovation.


Building a hotel or guest house is good ROI than house for rent. I rather flip the money on landed property and maybe buy property renovate and sell

Arutan:

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.

.
Daddy run me 100k make abeg

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 .

💯 facts

This your advice doesn't apply to Abuja especially AMAC.

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 .

We know these things and will take decisions according to our goals
No one is building a rental house in Nigeria to recover the cost via rent payments
You guys should rest on this trending building rental house issue

Hinta:
This is Your Best Chance To Monitor and keep an eye on your Properties; House, Office, Hospital, Shop/Restaurant, etc. and keep a proper record of activities that occurred in your absence.

This Solar Camera is Equipped with powerful LED bulbs bright enough to enable the camera to operate in full-color spectrum capturing clear pictures at night. It has an infrared vision that s up to 10 to 30 meters at night.

The Solar Camera is equipped with a microphone and a loudspeaker. This ensures that you can hear what is said around the camera and likewise speak back and be heard.

What's the current price per one?

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.

and if you invested the money in federal government bond with 20% average interest without reinvesting the income, your total at the end of 35 years plus your principal will be N560 Million.

Now if you are able to compound this every year, you land at N41 Billion Naira.

and in about 3 yrs and 10 months, your capital should double.

How about that?

sufficientfoods:
why would s allow such post make the front page. This is how they wrongly advice or discourage intending investors not to go into Building for rent . I must say that real estate still remain money bags for many wealthy people out there. Once you do your diligent job before investing which include , Location, rate of capital appreciate and accessibility , just sit back and watch those ROI trickle into your bank . Lets not go into the business opportunity(Equity release) that building will bring in for you

It is good that the post was push to front-page. The response generated from the topic has help to shed more light about real estate business. What he's is saying is true but subjective. We need more of these topics on Nairaland.