Asumming one wants to buy a land and build his choice house or just to buy a preferred building, which is better? FOr example, in Area X, land value is 2million Naira (survey, fees, documentation not inclusive) and a structure of 3 bedroom flats (2 storey) is to be built on the land or just to buy a 45million naira building property in a choice area, which is better?

I had this conversation with a friend who argued that it is better to buy than to build. But when we did the mathematics, we realised that 3 bedroom flat in our chosen area under review is 300,000 Naira p.a, that is, it would take him 10 years to recoup his investment, not to talk of making gains on the investment. He asked, what if the builder isn't around to monitor the building project or get a good foreman/family member (you have heard stories of how many family members, even parents have squandered money sent to them for building from their children abroad), what if building materials cost more now (even when he is aware building appreciates), what if the house is sold cheaply buy a landlord who had other pressing issue to attend to, and so on.

I also pointed out to him that it is better to build from scratch (buy a land, document it and start building), the amount, say 40,000,000 million naira one could pay for the property we argued about can be built for less, say around 20million, how is one sure of the quality of building materials used, that sometimes, houses on sale are overpriced, increased agency fee which can be saved by building (you know, agency fee of 5% on a N2million naira landed property is not the same as 5% on a N40,million house), and so on.

What do you think? Professionals come here pls

Source: https://www.operanewsapp.com/ng/en/share/detail?news_id=83f121ffec85d8a8068a372802c4eba2&news_entry_id=s2da9a697200415en_ng&open_type=tanscoded&request_id=e316f8ec309ce3f080e052b709557166e51a3806&from=publisher

Inheriting the house is the cheapest.

It depends on your ability. Buying afresh will give you opportunity to build your taste.
Buying a new house is also ok, but you may be overcharged or the taste of the house may not totally suit you.

For personal use, I will build from the scratch.


For investment purposes, I can buy already built houses, carry out some renovation project and sell/rent it out.

Some of the houses built by some developers are actually below required standard but the prices placed on them are outrageous.

uboma:
For personal use, I will build from the scratch.


For investment purposes, I can buy already built houses, carry out some renovation project and sell/rent it out.

Some of the houses built by some developers are actually below required standard but the prices placed on them are outrageous.

This is true. They always want to maximize profit.

NaijadrivaCars:
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This is true. They always want to maximize profit.

Maximising profit isn't the issue here.

They aim to maximize profit at the expense of safety. This is the main issue....