Property investment advice

[CohenLenstra]

Details:
Land/house near SLIIT
Price 27 million
From hand 13.5 mill
Loan 13.5 million at 14.5% per annum

Alterations and add upstair (slab already done): 5.0 million

Total investment: 18.5 million

Expected income (rent): 180,000 per month

Loan period. EMI. Monthly P/L
120 months. 0.214 mill -0.034 mill
180 months. 0.184 mill. -0.004 mill
240 months. 0.173 mill. +0.007 mill

Is this a worthy investment? The investment is entirely based on property appreciation, no profit till loan is repaid. No idea about the rate of property appreciation.

My doubt is that I personally feel that the investment is a longterm venture. My purpose of any investment is to generate wealth for me to enjoy, not anything about inheritance etc. On the otherhand feel like it's a solid future security, and method of diversification.

Any thoughts, opnions, facts, anything on this?

 

[Emios]

Rent 180? To whom a family?

 

[SK29]

https://www.cbsl.gov.lk/en/news/land-valuation-indicator-first-half-of-2025

Land prices in outskirts soar as city growth stabilises: LPI 2025 | Daily FT https://www.ft.lk/front-page/Land-p...-as-city-growth-stabilises-LPI-2025/44-787425

Hope this link will give you some idea about property prices

Good luck

 

[CohenLenstra]

Rent 180? To whom a family?

Students. Rooms. 8 rooms 25k per room.

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https://www.cbsl.gov.lk/en/news/land-valuation-indicator-first-half-of-2025

Land prices in outskirts soar as city growth stabilises: LPI 2025 | Daily FT https://www.ft.lk/front-page/Land-p...-as-city-growth-stabilises-LPI-2025/44-787425

Hope this link will give you some idea about property prices

Good luck

Thank you.
------ Post added on Jul 1, 2026 at 3:49 PM

 

[Inigo Montoya]

ඔවු වටිනවා නේ. ඔය 180,000 දැනටත් ලැබෙන ගණනක්ද? ප්‍රොපර්ටි වලට එක සැරේ ආදායම් උපයන්න බෑ. සාමාන්‍යයෙන් ස්ථාවර වත්කම් විදියට ගන්නේ. වඩාත් හොඳ දැනට තියෙන අතිරික්ත මුදලක් ආයෝජනය කරනවා නම් තමයි, හැබැයි සල්ලි උපයන්න බලාගෙන ඔය ආයෝජනය එතරම් සාර්ථක නැහැ. එහෙම වෙන්න නම් ප්‍රධාන පාරක් අයිනේ තියෙන දෙපොළක් වගේ දෙයක් වෙන්න ඕන.

 

[Emios]

Students. Rooms. 8 rooms 25k per room.

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Thank you.
------ Post added on Jul 1, 2026 at 3:49 PM

Its not that steady ban,25k is high end most go for 15 near sliit,better renting to a family

 

[supun_sg]

බම්ප් තමයි

 

[CohenLenstra]

Its not that steady ban,25k is high end most go for 15 near sliit,better renting to a family

Expected rental from a family? 2 storeys?

 

[SpinXO]

තේරුමක් නෑ. වගාවක් දාන්න පුලුවන් අක්කර කීපයක ඉඩමක් ගනින්. පොල් වගේ දීර්ඝකාලීන බෝගයක් දාළා, යටි රෝපණ වලට අන්නාසි, ගම්මිරිස් වගේ සුදුසු දෙයක් හිටවපන්. ආදායම් හොඳයි.

ගෙවල් අරගත්තා වගේ නෙමෙයි අවුරුදු 5 න් හෝ 10 න් නඩත්තු කරන්න වෙනවා. තීන්ත ගානවා කියලා හිතපන්. කීයක් යනවද... දැන් තියෙන Material cost & Labour charges එක්ක ගෙවල් නඩත්තුව කරන්න අමාරුයි සහ පාඩුයි. යට කරන සල්ලියක්නෙ. ආදායමක් නැහැ. රෙන්ට් ඉන්කම් එක කියන්නෙ සොච්චමක්. ඉස්සරහට තවත් කේස්. එහෙම බැලුවහම පට්ට පාඩුයි ලොකු ගෙවල් එක්ක ඉඩම් අරගෙන දාන එක.

 

[Emios]

Expected rental from a family? 2 storeys?

120k at most,but at least its guaranteed for a year or two.students come and go and 8 separate students means your home is done

 

[Peace for All]

Loan period. EMI. Monthly P/L
120 months. 0.214 mill -0.034 mill
180 months. 0.184 mill. -0.004 mill
240 months. 0.173 mill. +0.007 mill

That's a lengthy 10 (2036 year) to 20 (2046 year) years loan repayment schedule, without any profit but the property valuation..

You are sacrificing the FD interest for the "From hand 13.5 mill.." which I think is a lot..

Can you buy a more straightforward real estate/ resort/ backpacker hostel/ plantation etc., that generates the same Rs 180,000 PM..? That is only about $ 534 USD BTW.. - if you Airbnb a suitable property for $ 30 bucks per day, that's $ 900 USD PM..!

Check why the seller is disposing the property, in the first place as there could be floods/ land acquisitions/ thuggish neighbours etc.,

 

[CohenLenstra]

120k at most,but at least its guaranteed for a year or two.students come and go and 8 separate students means your home is done

I thought of renting to female students, they usually pay more plus more likely to be careful with the property.

 

[Emios]

I thought of renting to female students, they usually pay more plus more likely to be careful with the property.

Then you have better chance in nsbm area,sliit not so good ban,lot of ganja fellows etc.female also kinda same vibe

 

[CohenLenstra]

Can you buy a more straightforward real estate/ resort/ backpacker hostel/ plantation etc., that generates the same Rs 180,000 PM..? That is only about $ 534 USD BTW.. - if you Airbnb a suitable property for $ 30 bucks per day, that's $ 900 USD PM..!

This was my initial plan. But most such ventures are outside of Colombo. Managing them is not easy since I live in Colombo and is busy with my job.

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Then you have better chance in nsbm area,sliit not so good ban,lot of ganja fellows etc.female also kinda same vibe

Oh, okay... Good idea, should research on the student demographics and culture too..
------ Post added on Jul 1, 2026 at 4:24 PM

 

[Emios]

Renting to students is not that easy,consider buying a prime apartment very easy to find rent and rent out on airbnb.

 

[Peace for All]

This was my initial plan. But most such ventures are outside of Colombo. Managing them is not easy since I live in Colombo and is busy with my job.

---

Oh, okay... Good idea, should research on the student demographics and culture too..
------ Post added on Jul 1, 2026 at 4:24 PM

BTW do you find that property is valuable for 27 million LKR just by looking at market sources like Ikman etc.,?

 

[CohenLenstra]

BTW do you find that property is valuable for 27 million LKR just by looking at market sources like Ikman etc.,?

Yes, just looked up on Ikman, I felt this particular property is undervalued.

 

[Emios]

Yes, just looked up on Ikman, I felt this particular property is undervalued.

Area get flooded if near paddy area,my cousin has one.so check that too

 

[tharakaf]

Details:
Land/house near SLIIT
Price 27 million
From hand 13.5 mill
Loan 13.5 million at 14.5% per annum

Alterations and add upstair (slab already done): 5.0 million

Total investment: 18.5 million

Expected income (rent): 180,000 per month

Loan period. EMI. Monthly P/L
120 months. 0.214 mill -0.034 mill
180 months. 0.184 mill. -0.004 mill
240 months. 0.173 mill. +0.007 mill

Is this a worthy investment? The investment is entirely based on property appreciation, no profit till loan is repaid. No idea about the rate of property appreciation.

My doubt is that I personally feel that the investment is a longterm venture. My purpose of any investment is to generate wealth for me to enjoy, not anything about inheritance etc. On the otherhand feel like it's a solid future security, and method of diversification.

Any thoughts, opnions, facts, anything on this?

The problem is you have forgotten about the cost of maintaining the property through out that periods. Also can you get 180 per month? sounds like a steep price

 

[Peace for All]

Yes, just looked up on Ikman, I felt this particular property is undervalued.

"Colombo Suburbs (Nugegoda / Thalawathugoda): More budget-friendly options. Compact 1-bedroom units go for LKR 35 million, while 2-bedroom apartments cost about LKR 49 million" - AI

Hmmmm..

Did you check about Airbnb rates around that area..? It's not near the Airport or in Colombo BTW..