I agree with you. But since he wants advise on secured investment, he can take advantage of rising interest rate in the FGN savings bond or in the treasury bills market.

emmanuelewumi:



Reason why I asked if he had a job. Since he is not looking for passive income according to you, the best bet is to do business with the money.

I hope you understand the meaning of passive income by the way.

Kindly share some of the secured Investments that can give good returns with us.

A lot of jobless people, get money from families and friends running into hundreds of thousands of Naira and are looking for a monthly return of 50k to 100k.

He is concerned about the security of his money, he should be made to also understand the expected return from the so called secured Investments..

That is why I always advise young people with limited capital to think of how they create active income with their capital and invest the returns in order to create long term passive income

TIMIJAT:
I agree with you. But since he wants advise on secured investment, he can take advantage of rising interest rate in the FGN savings bond or in the treasury bills market.

Which will give him between 60k to 65k per annum ie average of 5k per month

So much financial education and liberation all over the pages of this thread. With nothing in my bank account, where will man start from. It's well.

To the elderly here, HAPPY FATHER'S DAY.

emmanuelewumi:


Which will give him between 60k to 65k per annum ie average of 5k per month

Well done sir.

Someday, I'm optimistic of been trained towards that path of financial freedom. You'll make a great teacher and mentor.

Happy Father's day to you sir.

We celebrate all Fathers around world... our superheros!!

Ziing is wishing all fathers out there a Happy Father’s Day.

emmanuelewumi:



My parasite is not your parasite, in management 1+1=3 due to synergy.

In a parasitic association

1+1= half or zero.

I can't be the sole provider for her 8 sibblings.

Words on marble.


Bless

Be prepared, keep building

XshegzzyeeiX:
So much financial education and liberation all over the pages of this thread. With nothing in my bank account, where will man start from. It's well.

To the elderly here, HAPPY FATHER'S DAY.

You have started already for the fact that you are here.

Good day Guru's I have been having a sleepless night over this issue.
I once loved real estate investment, lately I have lost interest in it, I am thinking of selling of my house, invest the amount on long term bond for 20 to 30years.
My question here is bond interest rate fixed? Its slightly above 10% annually or does the interest rate change every year.
My plans is to reinvest 50% interest on stock and some mid risk investment.
I am tired of tenant, renovation, fixing damage things sometimes no tenant, losing money everyday.

Diyke4rich:
Good day Guru's I have been having a sleepless night over this issue.
I once loved real estate investment, lately I have lost interest in it, I am thinking of selling of my house, invest the amount on long term bond for 20 to 30years.
My question here is bond interest rate fixed? Its slightly above 10% annually or does the interest rate change every year.
My plans is to reinvest 50% interest on stock and some mid risk investment.
I am tired of tenant, renovation, fixing damage things sometimes no tenant, losing money everyday.

How many houses do you have? If you have just one house, I won't advise you to sell your house ooo.

Coupon from bonds will be the same throughout the duration of the bond ie 20 years to 30 years.

Whereas rental income can be adjusted.

A property of N100 million will give an average rental income of N5 million, which will increase over the years.

Whereas a bond of N100 million will give you a coupon of N13 million to N14 million for 20 years to 30 years. The only advantage is that, there is no story. You will be paid on the agreed date

emmanuelewumi:



How many houses do you have? If you have just one house, I won't advise you to sell your house ooo.

Coupon from bonds will be the same throughout the duration of the bond ie 20 years to 30 years.

Whereas rental income can be adjusted.

A property of N100 million will give an average rental income of N5 million, which will increase over the years.

Whereas a bond of N100 million will give you a coupon of N13 million to N14 million for 20 years to 30 years. The only advantage is that, there is no story. You will be paid on the agreed date

Plus the value of the property will never be 100m in 30 years. It will most likely increase with inflation while the value of the bond’s principal will be the same 100m in 30 years. With Naija inflation, that 100m principal could be worth nothing when you get it back in 30 years

Frenchkiss564:

Advice needed

I am a young man with a savings of 500k, I need a secure investment platform that can give me something at the end of each month while my capital still remains intact.


Legends in the house please help!!!

Cant you see how the marketers of the investment houses on this thread jump and pass? Your 500k cannot help their ministry. Write am again say you get 5m or 10m and see them all begging you to come and keep your money with them

On a serious note sha, just go your bank and do fixed deposit or buy secondary market t bills if your bank will let you do with that amount. Or try one of those investment houses wey dey guarantee capital if they will accept your 500k.

Lazyyouth4u:


Plus the value of the property will never be 100m in 30 years. It will most likely increase with inflation while the value of the bond’s principal will be the same 100m in 30 years. With Naija inflation, that 100m principal could be worth nothing when you get it back in 30 years

Fixed Income investors try to get their capital as soon as possible, at 15% he will get his capital in 5 years using the 72 rule. Fixed Income investors, reinvest, replicate and diversify.

emmanuelewumi:



Fixed Income investors try to get their capital as soon as possible, at 15% he will get his capital in 5 years using the 72 rule. Fixed Income investors, reinvest, replicate and diversify.

I don’t understand what this has got to do with the rule of 72

We are comparing two investments here. Both paying rentals and interest that the investors can choose to spend or reinvest. At the end of the 30 year investment period (after receiving rentals and interests from both investments), the investors have their original investment.

The bond holder has his principal whose value has dropped significantly while the house owner has the house whose value has appreciated with inflation.

Lazyyouth4u:


I don’t understand what this has got to do with the rule of 72

emmanuelewumi:



Fixed Income investors try to get their capital as soon as possible, at 15% he will get his capital in 5 years using the 72 rule. Fixed Income investors, reinvest, replicate and diversify.

My point was that it’s not easy to choose a winner when comparing the two investments.

The bond investment may make more in coupons but the principal’s value will be worth little at the end of the investment period while the rental investment may be yielding less in rents but the value of the house should appreciate significantly at the end of the investment period.

Lazyyouth4u:


My point was that it’s not easy to choose a winner when comparing the two investments.

The bond investment may make more in coupons but the principal’s value will be worth little at the end of the investment period while the rental investment may be yielding less in rents but the value of the house should appreciate significantly at the end of the investment period.

The difference between the coupon and rent is N9 million per annum.

Calculate the reinvestment of the N9 million every year for the next 30 years, if you won't have hundreds of millions of Naira which you will add to your N100 million payout.

Core fixed income investors understand all these


The relationship with rule 72, @15% the investor must have gotten back his N100 million in 5 years.

The remaining 25 years is jara

They are not telling the cost of refurbishing or maintenance of that house to keep the value at same price less a decayed house will decrease in value.

They are yet to tell you that some tenants can get you a jail term and if you use professional property manager then you will be losing money.

Man know thyself and do thyself no harm

emmanuelewumi:



The difference between the coupon and rent is N9 million per annum.

Calculate the reinvestment of the N9 million every year for the next 30 years, if you won't have hundreds of millions of Naira which you will add to your N100 million payout.

Core fixed income investors understand all these


The relationship with rule 72, @15% the investor must have gotten back his N100 million in 5 years.

The remaining 25 years is jara

Can someone help the the value of N9 million invested every year for the next 30 years at 15%?

emmanuelewumi:



The difference between the coupon and rent is N9 million per annum.

Calculate the reinvestment of the N9 million every year for the next 30 years, if you won't have hundreds of millions of Naira which you will add to your N100 million payout.

Core fixed income investors understand all these


The relationship with rule 72, @15% the investor must have gotten back his N100 million in 5 years.

The remaining 25 years is jara

Are you assuming that I’m not an investor in both asset classes? You should not underestimate people o

I’m not arguing that one is better than the other. I am just saying that it is difficult to pick a winner between both. There are advantages and disadvantages and luck plays a huge part especially with the real estate investment.

There are real estate investors that get their capital back in a few years. This is not what the rule of 72 is used for.

emmanuelewumi:



How many houses do you have? If you have just one house, I won't advise you to sell your house ooo.

Coupon from bonds will be the same throughout the duration of the bond ie 20 years to 30 years.

Whereas rental income can be adjusted.

A property of N100 million will give an average rental income of N5 million, which will increase over the years.

Whereas a bond of N100 million will give you a coupon of N13 million to N14 million for 20 years to 30 years. The only advantage is that, there is no story. You will be paid on the agreed date

From my advice, I never said real estate or bond was better. I gave advantages of both, the investor will determine what suits his situation

RayRay06677:
They are not telling the cost of refurbishing or maintenance of that house to keep the value at same price less a decayed house will decrease in value.

They are yet to tell you that some tenants can get you a jail term and if you use professional property manager then you will be losing money.

Man know thyself and do thyself no harm

I agree. My assumption is that the rental income is a net amount after deducting maintenance costs and other operating costs.

Even a house that is not well maintained and sits on a piece of land in a decent area will still sell for much more than the purchase cost after 30 years.

In many cases, it is the land that is the key driver of real estate prices that is why location is key. Not many people will buy a 30 year old house and not knock it down to rebuild or spend significantly on renovating the house.

emmanuelewumi:



From my advice, I never said real estate or bond was better. I gave advantages of both, the investor will determine what suits his situation

And I was actually agreeing with you when I included a point I thought you hadn’t included which is the value of both assets after 30 years.

emmanuelewumi:




Can someone help the the value of N9 million invested every year for the next 30 years at 15%?

From my calculation, N9 million every year for the next 20 years @15% grew to N1 billion.

I stopped calculating, the initial plan was to get the value in 30 years, but had to stop at 20 years.

I want the results from others if they will tally with mine

Lazyyouth4u:


And I was actually agreeing with you when I included a point I thought you hadn’t included which is the value of both assets after 30 years.

Core fixed income investors understand the game and the so called inflation risk we are all worried about

Lazyyouth4u:


My point was that it’s not easy to choose a winner when comparing the two investments.

The bond investment may make more in coupons but the principal’s value will be worth little at the end of the investment period while the rental investment may be yielding less in rents but the value of the house should appreciate significantly at the end of the investment period.

There is no guarantee in this as the place can suddenly become abandoned and prices of houses will drop. Government might even come in and acquire the area and demolish all the houses in the area.

I thought people who buy 30 years bonds were fools, until a guru in the field explained some of these tricks to me ie reinvest, replicate and diversify with the steady coupons

NL1960:


There is no guarantee in this as the place can suddenly become abandoned and prices of houses will drop. Government might even come in and acquire the area and demolish all the houses in the area.

This is true. You will notice I used the word ‘should’.

Same way with your bond investment, you don’t know what will happen tomorrow. War, new government laws, hyper inflation are factors no one can predict. Luck plays a big role.

emmanuelewumi:
I thought people who buy 30 years bonds were fools, until a guru in the field explained some of these tricks to me ie reinvest, replicate and diversify with the steady coupons

But this applies to every asset class na

NL1960:


There is no guarantee in this as the place can suddenly become abandoned and prices of houses will drop. Government might even come in and acquire the area and demolish all the houses in the area.

Look at what Lagos State government did to the owner of Mobile filling Station at Maryland Lagos.


That used to be the station that generated the highest sale for Mobile Oil in Nigeria.


Govt just turned the property to a motor park. Doubt if they will give the owner of the property more than N100 million.

emmanuelewumi:


Can someone help the the value of N9 million invested every year for the next 30 years at 15%?

Future investment value: N1,069,291,080.11

Total interest earned: N880,291,080.11