Any investment in real estate that cannot generate the cost of investment in 12 to 15years is a bad investment.
Now before you go into investing that huge amount of money in developing a property with all the wonderful finishing, take a time out to ask of the going rate of rent around that location.
More often I listen to clients talk about the wonderful finishing of their property, how they did this and that therefore they must fix the rent to make good returns on their investment, as much as I want to agree with them but one must not take away the factor of location from it, again I say rental values are controlled by neighborhood and not necessarily the finishing of the building.
I know old houses in GRA that commands better rent than well finished houses in Rukpokwu. My advice would be don’t overdo in the name of making good rent but just do the basics, get good materials that can last long and competent workmen.
I have been in property business for long and am yet to see a tenant that bend down to check if the floor tiles in an apartment he/she is renting is Italian tiles or Spanish, do not over shoot your expenses. Remember I mentioned 15yrs as your benchmark to make back the money invested, let this be your guard in terms of how much you invest.
Estate Surveyor & Valuer.
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