@yomi007k

A Family friend bought a house for 35M...He hardly earn 2m Annually..I think real estate is over hype.Even to dispose real estate isn't easy . Diffrent tenant stories , pleading then finally they park.

yomi007k:

Real estate is not a bad idea but u need to consider a lot of factors.
1. Do u like omo onile stress?
2. Do u hav d finances to complete d structure.
3. If u finally complete d structure, will d returns be worth it?
I knw someone who used about 1.5M to build a room- and parlor. Only for dem to be asking 60k per year.
1.5M on T-bill @ 13 percent will give u abt 180k.
Different folks sha

Hello to all the gurus in the house!

I have been reading the thread from the very first page up till now.

I learnt alot through the pages but I was not able to get a particular information that I earnestly sought for:

Kindly let someone (assuming a zero level knowledge for me) explain and breakdown how to calculate what INTEREST amount is earnable on a particular amount at a particular tenor for Treasury Bill, to me assuming I am a primary 1 pupil.

This is majorly what made me read about the whole thread from page 1 without getting someone breaking it down to a layman's level.

FOR INSTANCE (Using the below as example for the explanation breakdown)

I have 10 million Naira and I intend to invest in a 180 days tenor TB at 13%, Kindly explain the calculation (on a step by step basis) of what my upfront GROSS INTEREST AMOUNT will come to and in conclusion, the likely NET AMOUNT (having deducted the applicable fees).

Thank you.

I bought a land in 2004 for two plot 75 by 50 sqm 720 k and 800 k In a undeveloped gra in kano fast forward 2015 I sold one for 7 million last year my neigbour sold his for 10 million in 2012 and my childhood friend bought several for 250 k from his inheritance in 1997 but we where lucky a singular act of government building a road change the prices the area was allocated In 1987 but only phase one that had some few road the was built so is a combination of luck and risk taking ,cos I als bought one around 2004 in another area for 620k after 2 year I diffcultly sold it for 650 k but now it will be like 3 million . hence study the area for prospect of future development this study is key in 10 year you can hit a 1000 percent which tb can never give


don't buy in already staturated area cos the land is at is peak value then expect u want to build for rent or accommodation
buy developing area with prospect the watch you investment multiple like mowa axise etc


treasury bill are also good they can return 150 percent in 10 year so best strategy buy land which good future prospect and invest in tb or bonds to maximum benefit

yomi007k:

Real estate is not a bad idea but u need to consider a lot of factors.
1. Do u like omo onile stress?
2. Do u hav d finances to complete d structure.

3. If u finally complete d structure, will d returns be worth it?
I knw someone who used about 1.5M to build a room- and parlor. Only for dem to be asking 60k per year.

1.5M on T-bill @ 13 percent will give u abt 180k.


Different folks sha

You have it totally wrong.

He is getting a 60k per year currently. I guarantee it will not be 60k in the next 3 years.

Secondly, the value of the property itself will have appreciated in 3 years as well.

Not comparable at all. Not even close.

coderXO:



You have it totally wrong.

He is getting a 60k per year currently. I guarantee it will not be 60k in the next 3 years.

Secondly, the value of the property itself will have appreciated in 3 years as well.

Not comparable at all. Not even close.

Assuming you buy a property for 10m and it appreciates hopefully with 10% every year, in 5 years that property will be worth 15m.

Now if you buy bond of 10m for 5yrs and you just put the interest in an account not touching it, in 5 years you will have 17.5m assuming the bond is 15% a year.

That means your bond pays you 1.5m a year. Now assuming your trading tbills with that 1.5m annually, you could have a total of 19-20m in 5yrs.

10m which is your initial investment and 9-10m from trading interest.

So while your 10m property is now 15m in 5yrs your 10m in bond has become 20m.

mekaboy:


Assuming you buy a property for 10m and it appreciates hopefully with 10% every year, in 5 years that property will be worth 15m.

Now if you buy bond of 10m for 5yrs and you just put the interest in an account not touching it, in 5 years you will have 17.5m assuming the bond is 15% a year.

That means your bond pays you 1.5m a year. Now assuming your trading tbills with that 1.5m annually, you could have a total of 19-20m in 5yrs.

10m which is your initial investment and 9-10m from trading interest.

So while your 10m property is now 15m in 5yrs your 10m in bond has become 20m.

Funny analysis. Still not correct.


Consider you start living in your built house, that is (minimum) N1m no longer goes to rent you were paying landlord. Over 5 years, that is N5m saved plus your property appreciation itself.


Let's assume that you already had a house; at the very least a N10m house should fetch you anywhere between N800k - N2m annually depending on location, by renting out. Then add that to your 10% appreciation.

And trust me, property does not appreciate linearly.

They don't compare.

coderXO:


Funny analysis. Still not correct.


Consider you start living in your built house, that is (minimum) N1m no longer goes to rent you were paying landlord. Over 5 years, that is N5m saved plus your property appreciation itself.


Let's assume that you already had a house; at the very least a N10m house should fetch you anywhere between N800k - N2m annually depending on location, by renting out. Then add that to your 10% appreciation.

And trust me, property does not appreciate linearly.

They don't compare.

Lol. 10m house in a reasonable place will fetch between 250-400k.

350k rental for 5yrs 1.750m plus 5m yearly appreciation =6.750m.


Now if u trade treasury bills with 1.5m annually from bonds. u will have up to 9m

Now after u sell that your house, deduct 15% agent fee and lawyer agreement.

mekaboy:


Lol. 10m house in a reasonable place will fetch between 250-400k.

350k rental for 5yrs 1.750m plus 5m yearly appreciation =6.750m.


Now if u trade treasury bills with 1.5m annually from bonds. u will have up to 9m

Now after u sell that your house, deduct 15% agent fee and lawyer agreement.

Fees in property are typically 5% or less when you enter high millions.

A 10m budget can build you (2), two-bedroom flats, and definitely will not rent at less than 400k each in a good area.


Bonds, Bills, Property: all good to invest granted that you do your due diligence. But none compares to Property.

If bills/bonds are so tasty, why aren't all the world's billionaires flocking to put money into them? $10m will fetch you a cool $1m per year won't it?

And lets not forget, governments do default on debt.

Give me your comeback on that one.

coderXO:

Fees in property are typically 5% or less when you enter high millions.
A 10m budget can build you (2), two-bedroom flats, and definitely will not rent at less than 400k each in a good area.
Bonds, Bills, Property: all good to invest granted that you do your due diligence. But none compares to Property.
If bills/bonds are so tasty, why aren't all the world's billionaires flocking to put money into them? $10m will fetch you a cool $1m per year won't it?
And lets not forget, governments do default on debt.
Give me your comeback on that one.

Most Wold Billionaire's all have Investment managers and Financial advisors which trade/invest behalf of them.But hardly do billionaire goes into Real Estate, Only people who flip houses Make the real cash from real estate.

TCann:
Hello to all the gurus in the house!

I have been reading the thread from the very first page up till now.

I learnt alot through the pages but I was not able to get a particular information that I earnestly sought for:

Kindly let someone (assuming a zero level knowledge for me) explain and breakdown how to calculate what INTEREST amount is earnable on a particular amount at a particular tenor for Treasury Bill, to me assuming I am a primary 1 pupil.

This is majorly what made me read about the whole thread from page 1 without getting someone breaking it down to a layman's level.

FOR INSTANCE (Using the below as example for the explanation breakdown)

I have 10 million Naira and I intend to invest in a 180 days tenor TB at 13%, Kindly explain the calculation (on a step by step basis) of what my upfront GROSS INTEREST AMOUNT will come to and in conclusion, the likely NET AMOUNT (having deducted the applicable fees).

Thank you.

Woww! Enlightening back and forth there.
Picked some stuffs outta it.
BUT it seem to have pushed my enquiry to the back burner.

STILL NEED HELP ON THE ABOVE QUOTED POST O!

coderXO:


Fees in property are typically 5% or less when you enter high millions.

A 10m budget can build you (2), two-bedroom flats, and definitely will not rent at less than 400k each in a good area.


Bonds, Bills, Property: all good to invest granted that you do your due diligence. But none compares to Property.

If bills/bonds are so tasty, why aren't all the world's billionaires flocking to put money into them? $10m will fetch you a cool $1m per year won't it?

And lets not forget, governments do default on debt.

Give me your comeback on that one.

Property investment is over-hyped. Most landlords make between 4-6% per year and that is if the house is always occupied. House maintenance, selling costs, bank loans if any...eat up all the profit. You will need to be very objective and punch in your numbers.

The ones that make money are agents, lawyers, banks, builders/developers and marketers.

coderXO:


Fees in property are typically 5% or less when you enter high millions.

A 10m budget can build you (2), two-bedroom flats, and definitely will not rent at less than 400k each in a good area.


Bonds, Bills, Property: all good to invest granted that you do your due diligence. But none compares to Property.

If bills/bonds are so tasty, why aren't all the world's billionaires flocking to put money into them? $10m will fetch you a cool $1m per year won't it?

And lets not forget, governments do default on debt.

Give me your comeback on that one.

I will really like to know that place where you will buy land and build (2) 2 bedroom flats and make 800k a year from it.

I will assume you bought the land for 2m. We know that 2m land will mostly be outside of town or community land. Who is going to pay 400k in that location a year?

It will suprise you to know that many Nigerian billionaires invest heavily in bonds and tbills. You dont expect them to go public about it. Even foriegn investors do buy Nigerian bonds.

Dont always assume you can always sell your property and raise cash during and emergency situation. Some people keep their property for sale and are not able to sell for years because nobody has cash to pay. They might eventually sell at a ridiculous price.

Ofcourse u know bank will not give u up to 80% of your property worth when giving a loan.

Sometimes property value also depreciate when there is a natural disaster like flood in the area or insurgency.

It is in very rare occasions that govt will not be consistent in payment. Remember that sometimes your tenants will not pay. And if you want to throw them out, you have to give them 6 months notice. which means you have lost a years rent or more.

Now lets say you own a property of 10m and you make 400k from it a year. If you depend on that 400k to survive, you will be living a miserable life. You cant start up any serious business with 400k and still feed from it.

But someone who buys tbills or bond with his 10m, can go into biz with the first 1.5m interest for the first year, and save the 1.5m of the subsequent years or trade tbills with it.

@mekaboy, @carpenter

Let's go ask Dangote if he has any Ghana or Nigeria bonds.

Ghana pays 23% on my last checking.

Nigeria pays 14%.

Or better yet, let's ask them which they hold more since they have financial experts managing their money.

If any of us NL know's Dangote, Otedola, Adenuga's people abeg make una ask them what they own more of.

Physical assets or paper investments (not including stock).


Don't even get me started.

This time last year $1 was N160. Today it is $1 to N220.

Mr Adenuga put in $1m at N160 = N160m , at 13% for a year October last year. He gets back N180m today

N180m today is currently $900,000.


I needn't say more.

coderXO:
@mekaboy, @carpenter

Let's go ask Dangote if he has any Ghana or Nigeria bonds.

Ghana pays 23% on my last checking.

Nigeria pays 14%.

Or better yet, let's ask them which they hold more since they have financial experts managing their money.

If any of us NL know's Dangote, Otedola, Adenuga's people abeg make una ask them what they own more of.

Physical assets or paper investments (not including stock).


Don't even get me started.

This time last year $1 was N160. Today it is $1 to N220.

Mr Adenuga put in $1m at N160 = N160m , at 13% for a year October last year. He gets back N180m today

N180m today is currently $900,000.


I needn't say more.

Boss, u have any idea how one can buy T-bills from Ghana?

coderXO:
@mekaboy, @carpenter

Let's go ask Dangote if he has any Ghana or Nigeria bonds.

Ghana pays 23% on my last checking.

Nigeria pays 14%.

Or better yet, let's ask them which they hold more since they have financial experts managing their money.

If any of us NL know's Dangote, Otedola, Adenuga's people abeg make una ask them what they own more of.

Physical assets or paper investments (not including stock).


Don't even get me started.

This time last year $1 was N160. Today it is $1 to N220.

Mr Adenuga put in $1m at N160 = N160m , at 13% for a year October last year. He gets back N180m today

N180m today is currently $900,000.


I needn't say more.

Nigeria pays 15% in bonds. So the house u invested 10m and sold 15m in 5yrs is not affected by the dollar? is 15m 5yrs ago the same today?

Ok lets assume dangote does not invest in bonds, does he invest in estate appart from factories he uses for production. Ok that brings me back to business. Dangote is a business man that needs capital.

Lets looks at this scenario.

Mr A has a property worth 10m and he makes 400k from it a year. He depends on that 400k to survive. In 5 yrs time his 10m house is now worth 15m.

Mr B sells his for 10m. Buys fg bond of 5 years at 15% he uses part his first year earning of 1.5m to go into business.

Now in the remaining four years, he saves 6m from his earnings. By the time the 5yrs is over, he has 16m plus a flourishing business.

Mr. A has his house worth 15m now and nothing else to show for it. While Mr.B has 16m cash and a business that could be worth 3-5m by now.

I assume mr B has not been trading tbills with his returns from bonds or putting it into business. But if he has been trading with the 6m, then the figures will be far above 16m.

Who is better off in 5 years?

mekaboy:


Nigeria pays 15% in bonds. So the house u invested 10m and sold 15m in 5yrs is not affected by the dollar? is 15m 5yrs ago the same today?

Ok lets assume dangote does not invest in bonds, does he invest in estate appart from factories he uses for production. Ok that brings me back to business. Dangote is a business man that needs capital.

Lets looks at this scenario.

Mr A has a property worth 10m and he makes 400k from it a year. He depends on that 400k to survive. In 5 yrs time his 10m house is now worth 15m.

Mr B sells his for 10m. Buys fg bond of 5 years at 15% he uses part his first year earning of 1.5m to go into business.

Now in the remaining four years, he saves 6m from his earnings. By the time the 5yrs is over, he has 16m plus a flourishing business.

Mr. A has his house worth 15m now and nothing else to show for it. While Mr.B has 16m cash and a business that could be worth 3-5m by now.

I assume mr B has not been trading tbills with his returns from bonds or putting it into business. But if he has been trading with the 6m, then the figures will be far above 16m.

Who is better off in 5 years?

MY brother u are so on point......selling properties....asking for ur rents .........is a hassle mehn.....not to talking of community tins .....when buying land.....or risk of loosing ur money outrightly...when buying ...i prefer bonds and tbills jare

Let's not be in a hurry to hoard paper assets. The above example I have made shows you exactly why.

Physical goods/assets will change price according to inflation and currency value.

Nuff said.


yomi007k, you need to go to Ghana and be a Ghanaian to buy them directly, but you can buy indirectly via funds.

You need to be careful because the example I made above also applies to them.


Any govt that pays high interest of loans do so because the know it is a high risk investment to the investor.

The interest is increased because of instability and low buying power of the currency as well as inflation.

$1, 5 years ago is still pretty much $1 today.

You cannot say the same for N1 or 1 Ghanaian cedi.

Pls oo, House does anyone have any idea how I can buy T-bills from Ghana?

coderXO:
Let's not be in a hurry to hoard paper assets. The above example I have made shows you exactly why.

Physical goods/assets will change price according to inflation and currency value.

Nuff said.


yomi007k, you need to go to Ghana and be a Ghanaian to buy them directly, but you can buy indirectly via funds.

You need to be careful because the example I made above also applies to them.


Any govt that pays high interest of loans do so because the know it is a high risk investment to the investor.

The interest is increased because of instability and low buying power of the currency as well as inflation.

$1, 5 years ago is still pretty much $1 today.

You cannot say the same for N1 or 1 Ghanaian cedi.

Thanx 4 d insight.

How does one purchase indirectly thru funds?

@yomi007k

Sowi whats treasury bill i dont stay in nigeria can u pls explain to me

mekaboy:


Nigeria pays 15% in bonds. So the house u invested 10m and sold 15m in 5yrs is not affected by the dollar? is 15m 5yrs ago the same today?

Ok lets assume dangote does not invest in bonds, does he invest in estate appart from factories he uses for production. Ok that brings me back to business. Dangote is a business man that needs capital.

Lets looks at this scenario.

Mr A has a property worth 10m and he makes 400k from it a year. He depends on that 400k to survive. In 5 yrs time his 10m house is now worth 15m.

Mr B sells his for 10m. Buys fg bond of 5 years at 15% he uses part his first year earning of 1.5m to go into business.

Now in the remaining four years, he saves 6m from his earnings. By the time the 5yrs is over, he has 16m plus a flourishing business.

Mr. A has his house worth 15m now and nothing else to show for it. While Mr.B has 16m cash and a business that could be worth 3-5m by now.

I assume mr B has not been trading tbills with his returns from bonds or putting it into business. But if he has been trading with the 6m, then the figures will be far above 16m.

Who is better off in 5 years?

my close friend built 6 (a room and parlour) apartments in one of the south estern states at cost of 8million naira....he bought the land (100 by 100)at 1million naira 2 years ago.

He built the 6 apartments in half of the plot(100 by 50) last year...rented each apartment@150k per annum(I.e#900,000 in a year).
The tenants are gladly paying for their rents yearly and praying for the landlord because the apartments are built with a TASTE.


He pays 30,000 to his Lawyer annually and Axxa Mansard insurance coverage 25,000 annually.

The 6 apartments values currently @12million naira.
The remaining half (100 by 50) values at 1.5 million naira today.
He plans to build 10 similar apartments (5 up and 5 down) in a storey building in the remaining half plot....calculate the annual income he will be getting ....for life

He still have other undeveloped plots of land that are appreciating in values.

He is still very active in FGBONDS and NTB and other investment, but he makes mega money in his real estates.
Good real estate investment is not comparable to FGNBond and NTB...

IF YOU'RE NOT GOOD IN REAL ESTATE, DON'T CONDEM OR BELITTLLE IT.

ukay2:



my close friend built 6 (a room and parlour) apartments in one of the south estern states at cost of 8million naira....he bought the land (100 by 100)at 1million naira 2 years ago.

He built the 6 apartments in half of the plot(100 by 50) last year...rented each apartment@150k per annum(I.e#900,000 in a year).
The tenants are gladly paying for their rents yearly and praying for the landlord because the apartments are built with a TASTE.


He pays 30,000 to his Lawyer annually and Axxa Mansard insurance coverage 25,000 annually.

The 6 apartments values currently @12million naira.
The remaining half (100 by 50) values at 1.5 million naira today.
He plans to build 10 similar apartments (5 up and 5 down) in a storey building in the remaining half plot....calculate the annual income he will be getting ....for life

He still have other undeveloped plots of land that are appreciating in values.

He is still very active in FGBONDS and NTB and other investment, but he makes mega money in his real estates.
Good real estate investment is not comparable to FGNBond and NTB...

IF YOU'RE NOT GOOD IN REAL ESTATE, DON'T CONDEM OR BELITTLLE IT.

I would have bought your story if you told me your the person that has the experience. For now, this is what your friend told you.

I dont know which part of the east, you are talking about because i will like more details.

Trust me, where u will buy land of 1m in Enugu, will not be motorable. There wont be motorable road. There.

As for the building 6 appartment on half plot etc, i cant tell.

For your information, Nobody makes mega money from rent. It will take atleast 10 yrs to recover the cost of building.

Someone bought land for 7m in the east. Put up 3 self contain rooms in the compound to secure the land and is asking for 100k a room. And people are pricing 60k.

Land cost 7m building this 3 rooms cost 3m . He has spent total of 10m and has not been able to make 300k a year.

He even put overhead tank and and pumping machine to get water into the houses. its been close to 1 year he finished, he does not know how to collect 60k a room after investing 10m. He has not built the main structure yet.

Mind you, this land cost 7m in and estate called sunrise in Enugu industrial area.

So i can imagine where 1m bought that land that is attracting 150k rent a year.

From the analysis my friend made above about $1 in 5yrs.

Lets say you buy property of 10m today at 220 naira to $1. thats about $45k

In 5 yrs you sell the property for 15m at 250 naira t
o $1 that is $60,000.

$60k -$45k = $15k profit.

Now u invest 10m in bond at %15 for 5 years. You have 17.5m in 5yrs

so u invested $45k at 220 naira and have 17.5m in five years at 250 naira that is $70k

$70k -#45k =$25k profit

timothy001:
@yomi007k
A Family friend bought a house for 35M...He hardly earn 2m Annually..I think real estate is over hype.Even to dispose real estate isn't easy . Diffrent tenant stories , pleading then finally they park.

It seems everyone is overlooking the capital growth of real estate which is absent for T-bills.

Lol Just Incase We Forgot, This Is Not A Real Estate Thread ooo biko, it's Treasury bills ooo...enough of this real estate stuffs.

seguno2:

It seems everyone is overlooking the capital growth of real estate which is absent for T-bills.

Capital appreciation is good. Cashflow is better

seguno2:



It seems everyone is overlooking the capital growth of real estate which is absent for T-bills.

i tire.

@yomi007k, google nthc ghana

seguno2:



It seems everyone is overlooking the capital growth of real estate which is absent for T-bills.

That capital growth i believe is tour interest in tbills.

Moses247:
Lol Just Incase We Forgot, This Is Not A Real Estate Thread ooo biko, it's Treasury bills ooo...enough of this real estate stuffs.

It is worthwhile to know the pros and cons.

Some are sounding as though TBills are these fool and error-proof investment.

Trust me, in some cases and a weak economy, you are just offsetting price inflation at the end of your bill/bond term.

Moses247:
Lol Just Incase We Forgot, This Is Not A Real Estate Thread ooo biko, it's Treasury bills ooo...enough of this real estate stuffs.

gbam!

coderXO:

It is worthwhile to know the pros and cons.

Some are sounding as though TBills are these fool and error-proof investment.

Trust me, in some cases and a weak economy, you are just offsetting price inflation at the end of your bill/bond term.

You are right, but inflation affects both tbills and property. It affects peoples ability to buy property as well. Sometimes value of property appreciates but people dont have cash to buy.

Property is a good way to save money of you have another source. But if all you have is 10m, ill advice tbills or bond and use the proceeds for business rather than investing 10 m in property hoping to survive on rent.

What are the requirements to invest in treasury bills

coderXO:


i tire.

@yomi007k, google nthc ghana

Tnx boss.

Have u ever worked with dem?