Real estate business: Bungalows as good investment

Make Money Nigeria


Home | Anything | ( 2 ) | Subscribe

Posted by on Wednesday May 9, 2012 9:48:53:

Even if you don't have enough money to invest in real state, you can start investing small by acquiring land and building bungalows in developing cities like Lagos.

Nowadays, bungalows are not really a bad investment in cities like Lagos or Abuja as it is an easier way to consolidate your real estate investment after purchasing land. There have been unfortunate stories of people who buy lots of plots of land but end up losing the same land due to the fact that they did not develop it. If you have bought a piece of land for quite a while, the best way to ward of land speculators and people who may fraudulently sell your land to others is to simply construct a building on it, even it is just a bungalow. However for a bungalow, you don't have to spend that much on foundation if there is no plan to add more floors above it.

When I say bungalow, it doesn't have to be those small low quality buildings we already know, but I'm talking about high quality developed bungalows or ground floor buildings that have good foundation, high quality roofing, tiled compound, water system, marbled floods, tinted windows with 3 or 6 bedroom flats.

You would just have to fence your land first and then do a solid foundation. A good foundation can cost as much as N1m before you actually start doing the building.

How much will it cost to build a bungalow?
From a bit of research I've made, it should cost about N3m($18,500) to build one if you already have a piece of land. If you are looking for cheap land in places like Lagos, you can also get it for as low as N200,000 to N500,000 in places like Ikorodu and Badagry. You would get it higher in places like Surulere and Lekki.


Earning money with your bungalow
Once your building is done, you can rent it to one or two families and collect yearly or bi-annual house rent. It is a cool source of income and a good asset. You may even live there and save a lot of money you would have spent on house rent. You could even upgrade it to one or 2 storey buildings later on. You may not have to look at the yearly rent you receive from it but at the capital appreciation it would give you in 5 or ten years. Home prices keep increasing in Nigeria yearly and I'm yet to see it reduce. Take the opportunity today. I remember my father telling me that he once had the opportunity of buying a land in Amuwo Odofin for N5,000 but now the price has gone up to over N3m within a space of 20 years. So real estate investment, no matter how small, is always a good investment in Nigeria.



Comments:
Re: Real estate business: Bungalows as good investment Reply by Jumie on Sunday May 13, 2012 at 11:24:46:

Hi Felix,
I just came across this site today and I'm so pleased. I'm a Nigerian but live abroad. Im young and just started working as a UK pharmacist but I really want to invest in Nigeria. I have also read ur article about buying shares, what would u recommend?



Re: Real estate business: Bungalows as good investment Reply by Felix Okoli on Sunday May 13, 2012 at 11:24:46:

If you are outside Nigeira, my best advice is to buy shares rather than invest in real estate from abroad.
Nigerian stock prices are now at their cheapest levels for the past 5 years and they seem more likely to rise than fall after this. Look for cheap shares and buy them. All those bank shares worth about N0.50 to N2 are not a bad investment. You can invest in 10 banks rather than just putting all your money into one.


Re: Real estate business: Bungalows as good investment Reply by Samuel maduako on Friday June 1, 2012 at 24:7:21:

real estate business grow like a tree plant besides of a stream






Post a Comment

Required fields are Name and Comment.


Name:

Email: (Optional)

Comment: