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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4608664 Views)
Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by TIMIJAT: 10:17am On Jun 20, 2021 |
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: |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 10:53am On Jun 20, 2021 |
TIMIJAT: Which will give him between 60k to 65k per annum ie average of 5k per month 6 Likes |
Re: Treasury Bills In Nigeria by XshegzzyeeiX: 2:57pm On Jun 20, 2021 |
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. |
Re: Treasury Bills In Nigeria by XshegzzyeeiX: 3:03pm On Jun 20, 2021 |
emmanuelewumi: 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. 5 Likes |
Re: Treasury Bills In Nigeria by Dsticks47(m): 3:33pm On Jun 20, 2021 |
We celebrate all Fathers around world... our superheros!! Ziing is wishing all fathers out there a Happy Father’s Day. 1 Like
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Re: Treasury Bills In Nigeria by Coolabbie: 5:42pm On Jun 20, 2021 |
emmanuelewumi:Words on marble. Bless 1 Like |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 6:34pm On Jun 20, 2021 |
Be prepared, keep building 10 Likes
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Re: Treasury Bills In Nigeria by emmasoft(m): 12:01am On Jun 21, 2021 |
XshegzzyeeiX: You have started already for the fact that you are here. 3 Likes |
Re: Treasury Bills In Nigeria by Diyke4rich: 12:36am On Jun 21, 2021 |
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. 2 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 6:34am On Jun 21, 2021 |
Diyke4rich: 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 6 Likes |
Re: Treasury Bills In Nigeria by Nobody: 7:33am On Jun 21, 2021 |
emmanuelewumi: 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 ![]() 12 Likes |
Re: Treasury Bills In Nigeria by Nobody: 7:44am On Jun 21, 2021 |
Frenchkiss564: 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. 5 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:55am On Jun 21, 2021 |
Lazyyouth4u: 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.
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Re: Treasury Bills In Nigeria by Nobody: 8:29am On Jun 21, 2021 |
emmanuelewumi: 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. 9 Likes |
Re: Treasury Bills In Nigeria by Tobex4realTobex234(m): 8:31am On Jun 21, 2021 |
1 Like |
Re: Treasury Bills In Nigeria by Nobody: 8:38am On Jun 21, 2021 |
emmanuelewumi: 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. 5 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:08am On Jun 21, 2021 |
Lazyyouth4u: 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 7 Likes |
Re: Treasury Bills In Nigeria by RayRay06677(m): 9:17am On Jun 21, 2021 |
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 13 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:27am On Jun 21, 2021 |
emmanuelewumi: Can someone help the the value of N9 million invested every year for the next 30 years at 15%? |
Re: Treasury Bills In Nigeria by Nobody: 9:30am On Jun 21, 2021 |
emmanuelewumi: 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. 2 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:31am On Jun 21, 2021 |
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 3 Likes |
Re: Treasury Bills In Nigeria by Nobody: 9:35am On Jun 21, 2021 |
RayRay06677: 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. 6 Likes |
Re: Treasury Bills In Nigeria by Nobody: 9:39am On Jun 21, 2021 |
emmanuelewumi: 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. 3 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:43am On Jun 21, 2021 |
emmanuelewumi: 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 4 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:46am On Jun 21, 2021 |
Lazyyouth4u: Core fixed income investors understand the game and the so called inflation risk we are all worried about |
Re: Treasury Bills In Nigeria by NL1960: 9:49am On Jun 21, 2021 |
Lazyyouth4u: 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. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:50am On Jun 21, 2021 |
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 11 Likes 1 Share |
Re: Treasury Bills In Nigeria by Nobody: 9:55am On Jun 21, 2021 |
NL1960: 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. 5 Likes |
Re: Treasury Bills In Nigeria by Nobody: 9:57am On Jun 21, 2021 |
emmanuelewumi: But this applies to every asset class na ![]() 2 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:58am On Jun 21, 2021 |
NL1960: 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. 5 Likes |
Re: Treasury Bills In Nigeria by NL1960: 9:59am On Jun 21, 2021 |
emmanuelewumi: Future investment value: N1,069,291,080.11 Total interest earned: N880,291,080.11 |
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