A man purchases a 4- bedroom duplex that cost #240million Naira in Lekki

Then he rents it out at #6million Naira a Year.

At that rate, it means it will take him 40years to make the money back.

The First person to explain the reason why a Sane person will do this gets a FREE GIFT from me.

Take your time to think and give a reply.

Why will a 4bedroom duplex cost 240m?

Please that's not the point here, perhaps Lekki is a place where houses are very expensive, you can browse from the internet

The value of the property will appreciate over a period of time. That is the case with real estate, it generates residual income.

You tried but not really
Thanks for attempting, that was a nice one

Okay I think it time to answer the question
The first reason why someone will buy a Real Estate is because this is someone who has tons of idle cash sitting in the bank doing nothing
So, he is not buying the property to make any form of immediate profit
When people buy real Estate like this, the number one major reason why they do this is to KEEP and PROTECT their money for INFLATION.

The tiny tent fee is not their focus. As a matter of fact, the rent fee can even go towards house maintenance

What am I saying here is that the man paying 240million for a house is NOT someone who has 240million to 500million in the bank

This is someone who has a lot of money he does not have need for at the moment
So instead of him to leave it at the bank where INFLATION will eat it up,
He simply puts the money in another form of real money - Real Estate for protection against INFLATION .

The second reason - investing the money in such high value real estate gives him the leverage to use the house as collateral to get a huge loan from the bank fro business that qualify

That way he doesn't have to sell the house anytime he is in need of money

While the common man is waiting for years to make their money back or sell the house he has made huge returns over and over again

However the main idea here is

This type of action is all about KEEPING and PROTECTING money instead of leaving it in the bank

I hope you learnt something here