- February 16, 2019
- Posted by: Laura
- Category: Investment
Just last week, I interviewed a client and his wife who just returned from the UK and wanted to own a house for rental purposes in Nigeria. Now, that isn’t a big deal, yeah? However, they didn’t want to buy a house, they wanted to build one. He talked about the style of the exterior, to its fittings and even parking space style. What was the big deal was that his lofty ideals of a semi-detached house (for rent) with all that panache, was going to cost close to NGN 200 million. He didn’t mind, actually, but I had some caveats for him.
In developing a building – especially residential – a few notes have to be taken in order to get full ROI on your property.
Do not try to design it TO YOUR PERSONAL TASTE. It’s one thing to have lived in a house previously and moving out but you want to rent/sell it. It’s another to desire to build an entirely new house, furnish it to your personal – and probably quite expensive – taste only to rent it out. The truth is that, the common tenant is not interested in expensive fittings. If, after spending such an astronomical amount of money on developing and no one is willing to pay NGN 18 – 20 million in rent, your house is just going to sit long in the market like a princess locked up in the highest room of the tallest tower till all you want to do is get money from it nonetheless because its value will begin to reduce.
Some of the major things you should pay consideration to instead, are:
The exterior of the house should be stylish and attractive. It has to call out to a potential buyer or tenant like, “hey there! You’d be missing out if you can’t call me yours!”
Steel doors for the entrance are great for withstanding the harsh elements and rectangular windows offer a touch of class. Water tanks should be strategically placed. If within the roof of the house, there should be a man-hole in the ceiling for accessibility. Septic tanks should also be well-channeled and sealed.
The last thing any tenant would want to do is drag parking spots with neighbors or be rudely interrupted from their sleep because, “come and move your car, I’m going out.” People (read: wives & girlfriends) also REQUIRE ample space for their kitchen and bathrooms.
Once these are sorted out, interior fittings should aim to be distinctive and timeless yet, affordable. From the light fixtures, kitchen appliances, sanitary wares and other electrical fittings, it shouldn’t all be pricey. If the tenant decides to revamp the interior to their personal taste, that is acceptable but most importantly, you’re getting proceeds on your investment.
Always consult a real estate firm, especially one that is into consultancy services, for nuances like these before delving into certain areas of real estate so you don’t make errors or wrong investments. Bricks & Tierra will always have your back.
“Real estate just got realer with Bricks & Tierra.”