NewStats: 3,259,774 , 8,170,883 topics. Date: Monday, 26 May 2025 at 12:12 AM 402750

#350k per year for 3 bedroom flats for where?

Oyelayor:
3 bedroom at 350k? How na

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

No brand new 3 bedroom apartment is currently 350k in Aba. He exaggerated grossly.

BoldBrainz:
This is basically why real estate investors now prefer to build hotels that bring in daily revenue, instead of apartments that recoup annual earnings.

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.

Well, it depends, there are many gains aside the ROI

The building itself is still an asset that appreciates over time, secondly your children will have something to inherit when you are no more

Well like you said, don't let your family or business suffer just because you are building a house, build with spare funds.

kelvyn7:


I have said this countless times.
Agree with you.

Very myopic
View to investment...
You build for rent purpose..
To diversify your streams of income....
Business can collapse in this volatile environ.....

Oyelayor:
3 bedroom at 350k? How na

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

, location is Aba

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 .

For me, I won't build 3 bedroom flats with 70m. I would rather invest like 80 to 100 m and build 2 bedroom flats in three storey building and charge 450k per year. Total number of flats in the building would be 30 flats. 30 times 450k will be 13.5 million per year. In 8 years you will break even.

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.

Buildings don't appreciate, only land does.

Exactly, i have a building that will give me break even in less than 10 years because I'm leaving there too so i don't have to pay rent which gives me savings on rent too

Atuero:
It all depends on the or

Break even shouldn't take more than 15 years

This is totally wrong, you can only loose to commercial rent in Nigeria not like abroad, imagine I own the same building for rent abroad whereby I earn monthly. You can compare that to Nigeria, cuz I’ll know my fate if I’m getting another tenant in a months time. Don’t give bad advice to other. And also some people even cash out from this commercial property’s etc lekki, Ajah, building materials is same price everywhere or even more outside Lagos. Your location matters a lot

Owning a house should only be for comfort. You'd be free from paying rents and swallowing rubbish from care-takers or landlords. I wonder why some build up to 10-15 houses when they live in 2 houses at a time. Forget all this land appreciation sh**t. If you worked legitly to earn that money, you can x10 in few more years with the methods of used to earn that more. I rather build Hotels, Event Centre, Shortlets, Filling Station, Store and many more than building multiple houses as investments. My opinion tho.

Having such house is like spreading the 70 million over the next few years for you to collect little by little and eventually sell off the land for bigger profit. Investors have other sources of income.

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.

House doesn't appreciate in value, only land does. Houses depreciate in value because modern houses keep springing up all the time.

What you consider house appreciating in value simply means naira losing its value. For instance, the #10k we spend in 2024 was worth #2,350 in 2019...just 5 years ago.

pocohantas:


No brand new 3 bedroom apartment is currently 350k in Aba. He exaggerated grossly.

Exaggeration or understatement? Just want to be sure of your point.

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 .

Your analysis is not totally correct...the rent will not remain at 350, 000 for 35 years...put that into consideration too

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.

Not every land appreciates o. In fact, some can depreciate and still later be acquired by government! I just want to correct the copy and paste rhetorics about real estate. Even to sell some real estate can be a tall order. So while it's good to build for you to reside, buying to rent out is a completely different kettle of fish

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 .

In 5 years' time, 100,000 will not build that house for you.

jmoore:


Exaggeration or understatement? Just want to be sure of your point.

Exaggeration. Can you get me a brand new 3 bedroom apartment in Aba this week? Target location is Ogbor Hill, Ekenna, Eziama...etc.

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.

Nah. Why should you own a property because you want to borrow. Instead, invest properly.

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.

Buildings don't appreciate, only land appreciate! New buildings designs emerge everyday & with time old ones become obsolete. You see people pricing a property at high amount, it is the location of the land they are pricing, not the building. Often times they will demolish the building to erect their desired structure. If u have built a house before, u will understand the op. I have done it & most times I do regret it. I ask myself if it was worth it. Not only the ROI is very slow, it comes with a lot of troubles from troublesome tenants. Building a house for rent shouldn't be anyone's first investment, it's best to buy land, fence it & find something else to invest in.

pocohantas:


Exaggeration. Can you get me a brand new 3 bedroom apartment in Aba this week? Target location is Ogbor Hill, Ekenna, Eziama...etc.

We owe a 2 story building 3 bedroom flats and we informed our tenants that next year rent will be 300,000 naira and its not even a new building. We live near Ariaria close to express. Rent inside town are higher than our location. 350K per year for 3 bedroom flat in Aba is not an exaggeration.

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.

The long term view that makes sense

Hmmmmm2024:


Your analysis is not totally correct...the rent will not remain at 350, 000 for 35 years...put that into consideration too

If you add inflation, it's almost the same.

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.

How will someone invest 100m in a project & won't care about return on investment?? Except the person is a politician looting funds! Is it everyone that is interested in taking loans? If u have built a house for rent with slow ROI & wahala coming from troublesome tenants, u will not make the bold statement.

jmoore:

We owe a 2 story building 3 bedroom flats and we informed our tenants that next year rent will be 300,000 naira and its not even a new building. We live near Ariaria close to express. Rent inside town are higher than our location. 350K per year for 3 bedroom flat in Aba is not an exaggeration.

- It is an old building.
- It is at express.
- You have once expressed your unwillingness to pump ordinary water for your tenants.
- 300k is just fine for that arrangement.

I was hoping you could get me a new house in the locations I mentioned for 350k.

If you want more for your building, renovate it and give your tenants water. I don't know why Aba landlords see water as luxury.

JetStar:


For me, I won't build 3 bedroom flats with 70m. I would rather invest like 80 to 100 m and build 2 bedroom flats in three storey building and charge 450k per year. Total number of flats in the building would be 30 flats. 30 times 450k will be 13.5 million per year. In 8 years you will break even.

100M to build 30 flats.
Be like na stolen cement and free labour you go use.

otipoju:


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

Everyday things.

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 .

Some of you 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... ?

BoldBrainz:


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.

i know ur mother n father didn't built one. So u have no right to campaign telling people not to invest in something that could last for a minimum of 100 years.. A century and its assured is never a waste

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 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

BoldBrainz:
This is basically why real estate investors now prefer to build hotels that bring in daily revenue, instead of apartments that recoup annual earnings.

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