Grandlord:
Mastermindx how are you? Any problem?

Good afternoon sir.
I'm interested in learning all i can in data science and i will appreciate if u could guide me.

ornicus:
There is something unattural about real estate prices here. One day the bubble will burst. It happened in the us

We already know when the bubble will burst, just wait for the crude oil prices to crash. Nigeria's real estate properties are overvalued, we have no viable economic policy that will attract foreign investors. The economy that is robust is the one that is entering into the stage of industrialization, but Nigerian is far from that.

Cryomancer:
That's not true please... real estate can depreciate and turn into a bad investment overnight especially in a country like Nigeria that lacks development.

People can purchase a landed property with hope that the location will be developed, but at the end things might even get worse.

Example is Satellite Town that used to be a high brow area, but since an Oil Depot was situated there, it has suddenly become an eyesore due to the bad roads and tankers blocking every access for homeowners to enter their homes peacefully and the local government care less about it because of the money they collect from the fuel tankers. Now people are selling off their houses over there for a cheap price and house rents now have become so cheap with lots of vacant houses around, because everybody is moving out and nobody seems to be moving in.

Real estate is good but invest in it wisely, especially in this yeye country that lacks vision, projections and development.

I was going to say something similar. I wonder what will happen to those new planned communities around the Dangote refinery... people think it's going to be hot cake, but I'm cautious for the reasons you posted...

Another example that I'm familiar with is the area around the River Niger in Asaba. Used to be high-brow up till the 90s. But in the past 20 years most of the new development has been in the areas around a core area surrounding GRA (close to the Benin-Asaba Expressway leading to the Bridge). Houses around the Niger are getting old, roads are not as well maintained, so in the space of 20-30 years, anybody who owns in that side has seen their investment go down. Which is a real paradox because in most countries, riverside is prime property.

Mastermindx:


Good afternoon sir.
I'm interested in learning all i can in data science and i will appreciate if u could guide me.

I'd really love to but I'm just a newbie in data science myself. I'm just done learning python basics and now I'm learning its data science frameworks for projects. Still a long way to go.

jojothaiv:
On a lighter note, real estate depreciates faster when you site your properties closer to a mortuary or cemetery..

Or near power lines, prison, chicken farms, etc

koning:





You hit the nail right on the head. It's a horrible investment if you do not have lots of idle cash. If you put N5 million on a piece of property with the hope of recuperating the N5million in 6 to 10 years, that is a very bad investment move in my opinion. The worst are people who build block of flats to rent out.
The best investment in property is to build the very house you will live in. This way you don't have to waste money that you would otherwise put in your biz paying rent.

Thank you my brother.I already said it in the treasury bill thread that renting is probably the worst form of investment especially if you want to take low risks with at least reasonable income.How can someone purchase an old 6 block flat for 45 million and is collecting rent of 25K/month?? Hes not even making a profit of up to 10℅/annum. That's outright madness. At the end of day, maintenance has to be done,property tax is being paid and some tenants may decide not to pay.

Problem is the whole idea of being a landlord.So when avg people make that first money,they go and dump it all in building and then probably go broke or are collecting paltry amount all in the name of rent.If not for comfort or a person is really rich,living in your private house is a waste of money especially for a person that doesn't have that extra money.smh

[color=#990000][/color] any real estate investment that depreciation occurred to has lack what dey call feasibility and viability studies and poor mgt and maintenance culture. for does dat says vigin land depreciate I dis agree b/c of what we call land reclamention.

Nice one

DameB:
If you bought a property before 2016, even though it has appreciated nairawise, it may have depreciated dollarwise.

hmmmm really.

/
I believe it is a long-term investment that adjusts with inflation.

A property is only worth what buyers are willing to pay.

By the way, good luck collecting rent in Nigeria.

/

Basically it cannot 'ultimately' depreciate amd I say ultimately with a long term perspevtive in mind because of three fundamentals prevalent in Nigeria,

One is the run away population growth that has defied even the harshest economic onslaught.
Two is the urbanisation of populated areas which is growing faster that perhaps anywhere other than the gulf countries.
Three is the dire projections for development in Nigeria going forward meaning that education and technology are unlikely going to play their part in slowing down our population or optimising the production and use of spaces.

Ultimately the only spaces where real estate wil suffer in the mefium to long term are coastal communities where climate change will depress value and increase costs dramatically and locations such as Abuja central where property does not reflect the true state of the economy at any point in time. But this will ultimately be overtaken by strong fundamentals in the ultra long term.

In Nigeria the only factors that can ultimately degrade the value of real estate I believe are so called 'act of god'. Even locations subject to conflict will ultimately recover.

DameB:
If you bought a property before 2016, even though it has appreciated nairawise, it may have depreciated dollarwise.

God bless you. Inflation is crazy in Nigeria. Real estate doesn't hedge value as fast as inflation sets in

You know building components has different life span. Depreciation occurs when there is wear and tear in building.
We have functional, economic, physical, social obsolescence which affects buildings.
If not because of govt acquisition and lack of maintenance that affects building in one way or the other. Real estate appreciates in value. If u buy a land today keep if for two years it will definitely appreciate in value but the fear is how govt intervention affects real estate properties. They vested power in the states military gvt to acquire for the overiding public interest.
If u go with proper maintenance culture real estate appreciates in value.
The best the to do is when you buy land or landed property acquire the neccessary documents from gvt then go ahead in any frm of use you want to use the land for,. If gvt acquires such land Sec 29 of Land use act 1978 made it mandatory for compensation to be made on any property compulsorily acquired by govt.
If u need land documents in ogun state environs be it survey plan, c of o, consent, allocation, accomodation contact me on 08161375559

pacespot:


We already know when the bubble will burst, just wait for the crude oil prices to crash. Nigeria's real estate properties are overvalued, we have no viable economic policy that will attract foreign investors. The economy that is robust is the one that is entering into the stage of industrialization, but Nigerian is far from that.

I've been saying it for a long while now. Once those oil prices crash, Nigeria would enter emergency state and a war would be looming.

No country without sufficient money can adequately survive

haryomikun:

God bless you. Inflation is crazy in Nigeria. Real estate doesn't hedge value as fast as inflation sets in

True. I hope the naira doesn't get devalued further with this constant borrowing

pacespot:


We already know when the bubble will burst, just wait for the crude oil prices to crash. Nigeria's real estate properties are overvalued, we have no viable economic policy that will attract foreign investors. The economy that is robust is the one that is entering into the stage of industrialization, but Nigerian is far from that.

No. Oil prices have fluctuated since oil became a staple in the 70's. It hasn't affected the long term trajectory of house prices. As a matter of fact house prices is apparently the only investment index that has realistically kept pace with inflation. And this is in an economy that has felt like one in perpetual recession.

The best thing to do to make money in property is to buy at a well discounted price or buy well undervalued property.

DameB:


True. I hope the naira doesn't get devalued further with this constant borrowing

Doesn't mean much. Inflation will always be with us. My first salary was N212.56k. My dad built his first house, a 6 bed detached dupkex for about N500,000 in the 80's. Today it is probably worth some N250 million. This is not inflation and devaluation alone and certainly not due to any 'wonderful' economic development in Nigeria over that time. Our cities have just grown, period.

.

My brother I dey suspect you, something that was designed to last 30 to 50 years, after few months you dey repair

lilwetdick:
nice topic Mecoy, question for you and onegig

example if 1 buy 2 properties, 1 worth 9 million and the other 15 million both on mortgage for 30 years

i already paid full payment for property worth 9 million, then i rented it out and then use the money gotten from rent to pay the yearly mortgage payment for the 15 million property, do you guys think this is a good idea

after reading this thread, it seems, i made a great mistake, for example i make no money from rent because i am using one property rentals to pay for mortgage for another property.

from present calculations in the long run , it will take me 25 years to pay off the mortgage and infact make a personal profit from both properties since i am using one rental to pay for another

i dont know if i calculated this stuff well but what do you guys think, did i make a mistake or was this a good long time investment plan because from what i understand it seems like a very bad real estate investment, anyway i am presently thinking that i would just have carry my money and put in treasury bills)

what do you guys think?

At what interest rate was mortgage for each ?

What was the initial deposit for both properties?

Also mortgages are amortized in a way that front loads the interest owed and mortgages are actually not given with an interest for profit making so i honestly don't think it's a wise investment getting a one to build a property just to rent out and make profit.

I would need all the numbers to be able to calculate if it would be profitable. I honestly think you should speak to your financial analyst.

lazeal:
I have a land in Benin. The area no gree appreciate cos of bad road...

Next year I will just fence it, put gate and leave it there. Not interested in staying in Benin for now.

Where in Benin I’m thinking of buying a land in Benin..... Sapele Road axis most preferably.

airminem:
What next?

You can either register an NGO and solicit for donations or start it with your personal savings. Nobody will give you money for a charity cause when he/she isn't sure of getting it back.

BarrSly:



Where in Benin I’m thinking of buying a land in Benin..... Sapele Road axis most preferably.

Mine is not at Sapele road o and I can't sell that land no matter what . Sapele Road is cool too. If I am to get a land in Benin after this, it should be around Sapele, Ugbor axis.

Go build inside swamp or on top drainage before you go know say house dey depreciate...

Mecoy:
The past two phases of my Civil Engineering career has found me working with two of Nigeria's top Real Estate companies.

I have planned, designed and also supervised projects. By virtue of working with the big boys of Real Estate in Nigeria, I have met and interacted with a lot of Real Estate agents and other upcoming Real Estate companies in Nigeria.

An Ongoing Real Estate Development

It is a common saying here, that Real Estate never depreciates, and I used to believe it was true, until the question was asked by one of my twitter followers, and I had to do a lot of critical analysis before answering his question.

Real Estate remains a very reliable investment, but like all other investments, there is a risk of depreciation associated with Real Estate.

Considering the first component of Real Estate: buildings, In Civil Engineering, all buildings have a design life. They are designed to last a certain number of years, usually between thirty and fifty years, depending on the budget of the owner. Consequently, as every cubic meter of concrete is poured, as every Kilogram of reinforcement is placed, the design life starts counting. Over a few months, several components starts losing value, some begin to call for repair, depreciation sets in.

If you purchase a piece of land and you have been asked to expect a certain Return on Investment, could anything possibly go wrong and reduce your ROI? Yes, a lot could go wrong!

Flooding could be an issue, as it takes a little increase in the level of adjoining land areas or an increase in the road level to get your land flooded. A bad drainage in the neighbourhood or the rechanneling of a river or some unfavourable incident at a nearby dam could get your property flooded. If you were to sell that property, no one will be willing to pay good money for it, and will definitely bargain lesser for the land. No one will even want to buy a flooded piece of land in the first, except there are no other available options.

Bad roads could also cause the value of a piece of land to depreciate. If the road(s) leading to your piece of land becomes bad, investors and prospective home owners will be discouraged and the demand for land in that neighbourhood will reduce. It is basic Economics that whenever there is low demand for any commodity, the price drops in an attempt to encourage demand.

Security could also be a major factor. If any expensive neighbourhood becomes notorious, either because of armed robbery, kidnapping, bombing or any other crime, the value of that neighbourhood will drop, and your piece of land will definitely lose its value.

Natural disasters or environmental disasters could also deal a fatal blow on your piece of land. Oil spillage, erosion, collapsed bridges, collapsed power supply structures can all lead to a fall in the value of your piece of land.

When next you intend to purchase a property, please consider the above factors, and if you are spending a lot on the piece of land, I will strongly advise that a Soil investigation and topographical investigation be carried out. It is better to be safe than to be sorry.

http://michaelakinpelu..com/2019/06/real-estate-never-depreciates-how-true.html?m=1

Mecoy:
The past two phases of my Civil Engineering career has found me working with two of Nigeria's top Real Estate companies.

I have planned, designed and also supervised projects. By virtue of working with the big boys of Real Estate in Nigeria, I have met and interacted with a lot of Real Estate agents and other upcoming Real Estate companies in Nigeria.

An Ongoing Real Estate Development

It is a common saying here, that Real Estate never depreciates, and I used to believe it was true, until the question was asked by one of my twitter followers, and I had to do a lot of critical analysis before answering his question.

Real Estate remains a very reliable investment, but like all other investments, there is a risk of depreciation associated with Real Estate.

Considering the first component of Real Estate: buildings, In Civil Engineering, all buildings have a design life. They are designed to last a certain number of years, usually between thirty and fifty years, depending on the budget of the owner. Consequently, as every cubic meter of concrete is poured, as every Kilogram of reinforcement is placed, the design life starts counting. Over a few months, several components starts losing value, some begin to call for repair, depreciation sets in.

If you purchase a piece of land and you have been asked to expect a certain Return on Investment, could anything possibly go wrong and reduce your ROI? Yes, a lot could go wrong!

Flooding could be an issue, as it takes a little increase in the level of adjoining land areas or an increase in the road level to get your land flooded. A bad drainage in the neighbourhood or the rechanneling of a river or some unfavourable incident at a nearby dam could get your property flooded. If you were to sell that property, no one will be willing to pay good money for it, and will definitely bargain lesser for the land. No one will even want to buy a flooded piece of land in the first, except there are no other available options.

Bad roads could also cause the value of a piece of land to depreciate. If the road(s) leading to your piece of land becomes bad, investors and prospective home owners will be discouraged and the demand for land in that neighbourhood will reduce. It is basic Economics that whenever there is low demand for any commodity, the price drops in an attempt to encourage demand.

Security could also be a major factor. If any expensive neighbourhood becomes notorious, either because of armed robbery, kidnapping, bombing or any other crime, the value of that neighbourhood will drop, and your piece of land will definitely lose its value.

Natural disasters or environmental disasters could also deal a fatal blow on your piece of land. Oil spillage, erosion, collapsed bridges, collapsed power supply structures can all lead to a fall in the value of your piece of land.

When next you intend to purchase a property, please consider the above factors, and if you are spending a lot on the piece of land, I will strongly advise that a Soil investigation and topographical investigation be carried out. It is better to be safe than to be sorry.

http://michaelakinpelu..com/2019/06/real-estate-never-depreciates-how-true.html?m=1

so where does one carry out the soil investigation and topography?

Hmmm

airminem:
How do i get loan to fund a charity

Fund yourself first.

DameB:


True. I hope the naira doesn't get devalued further with this constant borrowing

It would... The CBN is our saving grace. Otherwise the exchange rate for don fall brakata like old mama breast. The CBN keeps the exchange rate fixed at 360/$.

If people can't import anymore because of the high exchange rate, foreign businesses go leave the country and everything go begin burst.

onegig:


At what interest rate was mortgage for each ?

What was the initial deposit for both properties?

Also mortgages are amortized in a way that front loads the interest owed and mortgages are actually not given with an interest for profit making so i honestly don't think it's a wise investment getting a one to build a property just to rent out and make profit.

I would need all the numbers to be able to calculate if it would be profitable. I honestly think you should speak to your financial analyst.

thanks, i am not with the proper info but i noticed i could use an online mortgage calculator to get my figures

thanks for your help

..

[quote author=onegig post=]