WHY BUILDING AND SELLING IS BETTER THAN BUILDING AND RENTING
My guy who lives abroad invested over 100 million naira building a rental property in Anambra.
After collecting the first year rent, he did a little hood maths and realised it would take him over 20 years to realise his capital and not to talk about profits.
The funny thing is that about 30 percent of that money will go into maintenance and 20 go to court case because some tenants will surely drag you to court or you drag them to court.
So you end up losing 50 percent of your ROI in miscellaneous.
In the other hand, one of my bosses built 6 units 3 bedroom terrace apartment in Abuja. It cost him 200 million.
He sold each units 65 million each unit. So the 6 units gave him N390,000,000.
He made a profit of 190,000,000 within a year after selling the 6 units.
If I can invest and make my Profit within a year why wait for 20 years to make same profit?
Unfortunately the building will be outdated and start losing value after lasting for many years.
Case study is 4 storey buildings built in Onitsha 20 years ago by Igbo billionaires. Can you live in such buildings today? How much is their rent today?
If you build a tenant house, it is good. But you're storing money you might not be alive or healthy to enjoy. You become rich at old age when you're struggling with diabetes or stroke.
It only pays you at old age or your children enjoys it. This is not business. It is investment.
That doesn't sound like a good idea to me.
Business is cashflow and cashflow is King.
Again, business is cashflow and cashflow is king.
I would rather build and sell and make money immediately with profit than wait for 20 years before making only my capital.
Remember, Cashflow is King. What did you learn from this?
Do you want to start investing in real estate through land banking? WhatsApp or call me +2348164381237
Nelson Nwamara
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