Dear Landlords and Landladys,

How long did it take you to get back all the money you spent in building your house from your tenants?

Like how much did you invest in the building and how many years did it take to get the money back?

Depends on the location. Between 10 years to 100 years

As we know asides the value of land, the cost of building same house across the country is almost the same.

Recouping the cost of building from rent will depend on the location of such house.

A house built at Banana Island, Lekki Phase 1, VGC, Omole Estate for example, may bring back cost of building from rent in few years..

Whereas, same house built at some areas in Ibadan for example, won't bring back cost of building from rent in the owners lifetime

Asmmi:
Depends on the location. Between 10 years to 100 years

100 years!!

I go don die by then

I get the point. Thank you

This is a wrong approach to real estate business. And it's one of the reasons house rents have become UNBEARABLE.

You don't invest in real estate because you are eager to recoup your investment. You invest in real estate because of 2 reasons:

1. Cashflow.

2. Capital Gains.

The first one gives you a STEADY stream of income. The second one comes into play when you decide to sell the property.

If you are eager to recoup your initial outlay, foregt about rent and sell the property. You can build and sell at a markup.

But if the objective is to rent, then FORGET about recouping your investment.

If you choose to let the property, you'll have cashflow and asset to use as collateral.

Fearjah:



100 years!!

I go don die by then

I get the point. Thank you

Die, no o. God forbid.
You'll be 100+ naa

Asmmi:


Die, no o. God forbid.
You'll be 100+ naa

My brother,

As you see me so, I no dey too pray for long life,

Na health and prosperity and to please God before I die be my prayer oo

All this long life wey person go come de sick and be burden to others, me no want.

adioolayi:


Whereas, same house built at some areas in Ibadan for example, won't bring back cost of building from rent in the owners lifetime

Na to reason well before anything.


You do well

Namaster:
You invest in real estate because of 2 reasons:

1. Cashflow.

2. Capital Gains.

Great input!

Thank you
Nlfpmod Educative and Enlightening

Fearjah:


My brother,

As you see me so, I no dey too pray for long life,

Na health and prosperity and to please God before I die be my prayer oo

All this long life wey person go come de sick and be burden to others, me no want.

No bel lie. Once man don hit 70 plus. Body go don tire man already sef. Some people dey tire for the life that time sef