Sometimes, we ought to challenge the popular beliefs in diverse areas of our lives, investment inclusive. Better results only come when we get tired of the old ones. The popular belief of making enough money and build houses for rent is safe and convenient. Safe enough to stop us from thinking further. Carefully analyze my eight reasons why investment in rental property may not be the best.
1) It Makes Capital Dormant:
Nothing ties capital down like real estate property. It looks safe but fund are not to be tied down. They are meant to be active and generating more funds. Investment in rental property will ensure that your money is visible but it may not guarantee immediate profits. There are other real estate options that yield far more than rental property

Please debate my points, there are more where this came from

Yes...but it is better, as it is low-risk investment. Then it's good for busy people

Still on my first point,

Except you are using your property as a collateral for other business, the building is just a bit better than a flower.

Later I will talk on its POOR RECOVERY FROM DIMINISHING RETURNS

your right, it shouldnt be the first line of investment.
it is secure but it can tie invest-able capital down

@OP, The reason u posted this is because u are a novince about real estate business. Real estate business is not a business anybody can jump into. If u know much about real estate u can make much profit comfortably within 2-3 months of investment. There are those that their business is nothing but property investment. In real estate business, u can buy a land @ 1.2m and resell @ 2m in less than 3months. There are secrets in d business, consult good estate manager, before posting ignorantly. Engr Gordon

chynergy1:
your right, it shouldnt be the first line of investment.
it is secure but it can tie invest-able capital down

Chynergy1
Sure it does but I wish that we get something straight.

Land appreciates in value but there are better ways of putting land to use aside rental properties which will yield amazing returns.

engrgordon:
@OP, The reason u posted this is because u are a novince about real estate business. Real estate business is not a business anybody can jump into. If u know much about real estate u can make much profit comfortably within 2-3 months of investment. There are those that their business is nothing but property investment. In real estate business, u can buy a land @ 1.2m and resell @ 2m in less than 3months. There are secrets in d business, consult good estate manager, before posting ignorantly. Engr Gordon

engrgordon sir,
Well you are right by saying real estate is wide but what I'm not sure of is your wide knowledge of it.
Since we are all here to learn, kindly throw more lights into your claims.I'm so eager to learn
My initial claim wasn't for those looking for quick profits which may not last but for those interested in buying and securing the future.
We need to think outside the box in this fast growing world and we must be able to study trends.
As a real estate expert that you may be, you know that it is the land that appreciates not the building. So instead of buying land and selling it in 2 or 3 month which I believe is myopic or building a rental property which is more out of fear, there are mindblowing real estate ventures that same amount of money will be invested with a guaranteed better return for a very long time.

Here is another reason why investing in rental properties may not be the best:

3) Extremely low income yield
Let’s take any state apart from Lagos, PH and Abuja where you can get a decent bungalow for 4,500,000naira for instance. The rent on such property cannot be more than 300,000naira annually. This means, it will take up to 15years before the invested capital is gotten back. For me this too long considering the availability of viable options.

Even if you get an apartment in Lagos for 11million and your rent is around 900k per year,it will still take almost 12 years before you break even.

Buying land for other options will deliver far better than this.

hotmas911:
Here is another reason why investing in rental properties may not be the best:

3) Extremely low income yield
Let’s take any state apart from Lagos, PH and Abuja where you can get a decent bungalow for 4,500,000naira for instance. The rent on such property cannot be more than 300,000naira annually. This means, it will take up to 15years before the invested capital is gotten back. For me this too long considering the availability of viable options.

Even if you get an apartment in Lagos for 11million and your rent is around 900k per year,it will still take almost 12 years before you break even.

Buying land for other options will deliver far better than this.

then you don't understand the power of real estate. That property bought for 11m can be used to secure a loan from a bank to do other businesses while d rent still runs. And the day u decide to sell it gives capital appreciation

millhouse:
then you don't understand the power of real estate. That property bought for 11m can be used to secure a loan from a bank to do other businesses while d rent still runs. And the day u decide to sell it gives capital appreciation

Oga millhouse, don't get me wrong ooo. The reason why am making this point against rental property is because of my knowledge of another version of real estate.
Have you thought of how real estate can be boosted through agriculture?

Cc : millhouse engrgordon chynergy1 angryNigerian

I feel since I raised an opinion not supporting investment in rental property, I should also share the option I have considered that is working.
I mentioned earlier that land property can be used more profitably in agriculture.
For instance, last season I experimented potatoes on my growing cashew plantation( my experimental plot was just about an acre). It was interesting to note that in 3months it delivered a profit margin of approx 80k. Now imagine if I had done it all my entire farm. This I got with little or no stress.

I will share more...

Good day house,

Imagine if one has a cash crop plantation ( e.g cashew) which can be intercropped at the earlier stages with other crops. The short term crops will bring income atleast twice a year while I wait for my cashew to fruit in just 3years.

Maintaining your investment in farmland especially cashew plantation is ridiculously cheap.With 20k to 30k, you can maintain an acre for a year.
I won't stop repeating this; INTER-CROPPING cashew with potato or soya can make all the difference for you.

Follow me.

Following!!!!

hotmas911:
Maintaining your investment in farmland especially cashew plantation is ridiculously cheap.With 20k to 30k, you can maintain an acre for a year.
I won't stop repeating this; INTER-CROPPING cashew with potato or soya can make all the difference for you.

Follow me.

Have you also consider this?
****Thinking/ Innovative Redundancy
People always seem to have a feel of accomplishment because they have built one house or more. So they reduced their engagement in creative financial thinking. They felt that at least they have a roof on their head and little income is coming in, so why should they bother?

I will never shy away from the fact that cashew cultivation yield better

Call me to know details

Yes, but some people like to play safe.

hotmas911:


engrgordon sir,
Well you are right by saying real estate is wide but what I'm not sure of is your wide knowledge of it.
Since we are all here to learn, kindly throw more lights into your claims.I'm so eager to learn
My initial claim wasn't for those looking for quick profits which may not last but for those interested in buying and securing the future.
We need to think outside the box in this fast growing world and we must be able to study trends.
As a real estate expert that you may be, you know that it is the land that appreciates not the building. So instead of buying land and selling it in 2 or 3 month which I believe is myopic or building a rental property which is more out of fear, there are mindblowing real estate ventures that same amount of money will be invested with a guaranteed better return for a very long time.

Mature response

When the chips are down is the best time to invest aggressively..... a reflection from Warren Buffet.

Farmland are available

Those with investment in agriculture most especially farmland for lease, sales or cultivation should be busy now laying another bed for the future.
#smartpeople

Controversy-free farmlands are available at discounted price in Ogbomosho.

Invest in farmland today.
A lot of people have doubts or fear as to the genuity of most lands but hotmas911 has been in this trade for a long time.
Make a plan to visit Ogbomosho and then decide if you are buying or not.
#farmland.

Invest in Farmland. Call me

Invest in Farmland, set up a profitable farming venture Call me