Lazyyouth4u:


But this applies to every asset class na

Referring to the usually excuse of inflation for bonds, people who understand would have used the coupons to replicate 10 more tranches of N100 million bond Investments from the coupons within 20 years

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

At the end of the day, luck plays a key role.

Do you know that there are people in this Naija that do not have tenant wahala and get steady rentals from their properties that they reinvest in other properties? We are talking about tenants that will even use their own money to keep your house in the best possible shape.

emmanuelewumi:


Referring to the usually excuse of inflation for bonds, people who understand would have used the coupons to replicate 10 more tranches of N100 million bond Investments from the coupons within 20 years

I am quite confused. The other day, you were talking about how people can use their coupons to pay rent, school fees and other recurring expenses

NL1960:


Future investment value: N1,069,291,080.11

Total interest earned: N880,291,080.11

Thank you

Lazyyouth4u:


I am quite confused. The other day, you were talking about how people can use their coupons to pay rent, school fees and other recurrent expenses

The coupon paid N14 million, rent will pay N5 million.

The bond investor used the difference of N9 million to hedge inflation in 30 years by reinvesting the difference between his coupon Investment and his friend who invested the same fund in real estate

Lazyyouth4u:


At the end of the day, luck plays a key role.

Do you know that there are people in this Naija that do not have tenant wahala and get steady rentals from their properties that they reinvest in other properties? We are talking about tenants that will even use their own money to keep your house in the best possible shape.

Very few landlords, they should be about 5%.

They should also be charging 10% below the going rates and must invest in verification and investigation of new tenants, in the cause of doing this the property might not generate income for months or years

emmanuelewumi:




Very few landlords, they should be about 5%.

They should also be charging 10% below the going rates and must invest in verification and investigation of new tenants, in the cause of doing this the property might not generate income for months or years

Not every one goes into real estate as their sole investment asset class. Some do it to diversify their portfolio and do not necessarily have to make returns at par with their other investments.

I’d rather get below market annual returns with good tenants in one house in a nice location than have high returns with 20 houses in low cost areas where it is a ‘hit and miss’ when it comes to finding decent tenants.

Man know thyself

Lazyyouth4u:


Not every one goes into real estate as their sole investment asset class. Some do it to diversify their portfolio and do not necessarily have to make returns at par with their other investments.

I’d rather get below market annual returns with good tenants in one house in a nice location than have high returns with 20 houses in low cost areas where it is a ‘hit and miss’ when it comes to finding decent tenants.

Man know thyself

Exactly, what I told my cousin when he wanted to increase his rent to what was obtainable in his area.

Better to have good tenants that are prompt with payments and also manage the property well and earn 10% below the going rate

Nigerians are generally not disciplined, paying your bills and debts promptly is a sign of a serious and disciplined person

emmanuelewumi:
Nigerians are generally not disciplined, paying your bills and debts promptly is a sign of a serious and disciplined person

I have a tenant, he is a Pastor the man can owe for Africa be expects everything to be done for him at no cost.

Always telling my agent, how God blessed his former landlord who didn't collect rent from him for 4 years.

Don't you think we may have an asset bubble in this country given rising inflation and poverty rates?

This is one of the reasons why I find it difficult investing in rental income assets like houses in Nigeria. The way tenants will owe you and make it seem like they are doing you a favour when you remind them of their due rent.

The exposure too is terrible. I have relatives that started building houses and within the first week of starting up the foundation, the whole community started disturbing them for alms meanwhile the bigger boys are doing something different with no eye wey see exposure

emmanuelewumi:



I have a tenant, he is a Pastor the man can owe for Africa be expects everything to be done for him at no cost.

Always telling my agent, how God blessed his former landlord who didn't collect rent from him for 4 years.

afroxyz:
Don't you think we may have an asset bubble in this country given rising inflation and poverty rates?

Which of the assets are you looking at? You can only have a bubble after a prolonged bull.

emmanuelewumi:



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.

So many properties have been destroyed at mba street in Olodi-Apapa, Demurin road Ketu, Bariga for construction of a double lane road.

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

9m every year for 30years @15% will result in N4,499,612,265. (i.e. 4.5B).

The joy of compounding becomes very very pronounced from year 20 to 30.

emmanuelewumi:


Which of the assets are you looking at? You can only have a bubble after a prolonged bull.

Real estate. Rental apartments to be precise . Going by the increasing number of houses which are empty (Abj an ezample), and the fact that many people's income may not keep up with rising rental costs

emmasoft:


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

Is there no treasurybill auction this week? I got to stanbic this morning but was told that there is no auction until next week

NL1960:


Future investment value: N1,069,291,080.11

Total interest earned: N880,291,080.11

oga please show the workings, thanks

Emndy:


9m every year for 30years @15% will result in N4,499,612,265. (i.e. 4.5B).

The joy of compounding becomes very very pronounced from year 20 to 30.

Bros you they do magic...what

Emndy:


9m every year for 30years @15% will result in N4,499,612,265. (i.e. 4.5B).

The joy of compounding becomes very very pronounced from year 20 to 30.

That was why I stopped at year 20.

But someone got about N1 billion

Biafran4life:
Bros you they do magic...what

Bros, "compounding" they say is the 8th wonder of the world. Those who understand it, use it.

9m investment every year @ 15%

Year 1: 10.35m
year 5: 69.78m
year10: 210.14m
year15: 492.46m
year20: 1.06B
year25: 2.20B
year30: 4.5B

Biafran4life:
oga please show the workings, thanks

I did not do the workings. I just put the figures in the formula provided. Follow this link and try it out.

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Biafran4life:
Bros you they do magic...what

No be magic o.

Using this link:

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

I got this:

Future investment value: N4,508,612,265.02

Total interest earned: N4,229,612,265.02

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

He doesn't do much thinking. He already assumed the investor would blow all coupons

NL1960:


No be magic o.

Using this link:

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

I got this:

Future investment value: N4,508,612,265.02

Total interest earned: N4,229,612,265.02

Don’t forget to also project inflation and Naira devaluation over thirty years

And you cannot assume that you will continue to reinvest at 15% for 30 years.

OgogoroFreak:
He doesn't do much thinking. He already assumed the investor would blow all coupons

I agree with you

OgogoroFreak:
He doesn't do much thinking. He already assumed the investor would blow all coupons

Says the audio bitc0ins millionaire investor. If you don’t understand a point, just jump and pass. What on earth has my point got to do with blowing or reinvesting coupons?

Better go park for ashawo thread to continue your research on ashawo business. That’s about all your brain fit carry.

emmanuelewumi:



I agree with you

You agree that I don’t do much thinking?

Lazyyouth4u:


You agree that I don’t do much thinking?

Haba, not at all ooo

Lazyyouth4u:


You agree that I don’t do much thinking?

It actually took me a very long time, before I could understand the rationale behind some core fixed income investors who buy 30 years bonds.

They are so liquid, that they deploys their cash to buying real estates when are are sure of a minimum rental income yield of 10%

Confirmed below (compounded) but 15% is a tall ask to then be the average return on the N9m annually received for the next 29 years though one has stopped at 20 years in the table below.

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

Lazyyouth4u:


Says the audio bitc0ins millionaire investor. If you don’t understand a point, just jump and pass. What on earth has my point got to do with blowing or reinvesting coupons?

Better go park for ashawo thread to continue your research on ashawo business. That’s about all your brain fit carry.

I am very sorry, I apologise on his behalf.