Godbpraised:
hmm bros you make sense. But someone explained that renting for the purpose of event center.

Hope you go do jazz join so that they must use the event center or you have not heard of dispute of non payment. Some weekends are dry and some people organize events on the believe that money will be raised on that day but end up the other way. Business is good but the risks are not smiling either. My risk tolerance is almost zero.

Barrytone:


Hope you go do jazz join so that they must use the event center or you have not heard of dispute of non payment. Some weekends are dry and some people organize events on the believe that money will be raised on that day but end up the other way. Business is good but the risks are not smiling either. My risk tolerance is almost zero.

lol boss are you seriously serious. Bros please may I discuss with you offline, I need more info. I am based in Canada was seriously think to invest in this. Surely, I need more info. I will inbox you my email. Please

I'm hoping 02/10/2019 Tbill rate climbed to 14% amidst speculation of Naira devaluation. 2019 rates at a glance.

Barrytone:

My house is up for sale but nobody is asking, maybe am not shouting enough. House is worth 35m to 50m. I realized that if i invest that amount then i will use the interest to rent a duplex in the choicest estate in town and still have money remaining then i. 5 years my interests can buy or build a befitting home for.my family. A duplex is 1m to 1.5m in best estate in my town. 35m gives me 4.2m at 12%. Even i use 2m to pay rent, i have 2m to reinvest. I should be able to own my dream mansion in my dream area in next 5 years.

I got your point now, thanks.

Barrytone:
In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

Sir, I understand you completely. I once abandon a house after I realize the rentage there will Never yeild good returns for me.

But for the 53 flats, I feel u made a mistake, you should have done proper research abt the rentage and how many years it takes to recoup your investment. For me if it takes more than 10 - 11years, then something is wrong, I won't even bother buying the land to start with or negotiate it lower.

Anyway tbills open my eyes for more than 2 years silently following the thread, just got some properties here and there to have something to point to, but the hype is not worth it.

Barrytone:


Hope you go do jazz join so that they must use the event center or you have not heard of dispute of non payment. Some weekends are dry and some people organize events on the believe that money will be raised on that day but end up the other way. Business is good but the risks are not smiling either. My risk tolerance is almost zero.

[quote author=Barrytone post=82690776]


I have this investment. People pay "before" I give them the keys to the hall. I mean full payment. If you have your building at a good location with good road and car space your hall must be busy with occasions/ programmes.

DigitalMallam:
I'm hoping 02/10/2019 Tbill rate climbed to 14% amidst speculation of Naira devaluation. 2019 rates at a glance.

How come zenith gave me 9.5% 91 days for August 28

Barrytone:
In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

I normally tell people that a young man having in his mind to build a property to live in just to be called 'landlord' is archaic. You will hear some people say 'na rent i go die put'. I believe property is worth it when it is an estate with several flats.

I live in a 6 flats compound. Four of us that are the early occupants pay our rents constantly. The Landlord then saw that as a weakness and opportunity to exploit and started increasing rent anyhow. He was trying to increase our rent to catch up with the new tenants. One flat became vacant and it took 6 months to get a new tenant. The rent of the new tenant expired and has not been able to finish paying and now another rent is due. Another flat became vacant and it took 9 months to get an occupant. We were now surprised when the landlord gave us an increase for the next year rent and it was just between 8-10%. This is somebody that will wake up and do 40% and say 'anybody that does not want to pay should pack out'. Iam sure he was now starring at the prospects of 4 flats being vacant as we had already made up our minds that if he does his 30-40% again, we will pack out. A tenant is still owing part of a year with another year due. The new tenant is yet to complete agency and agreement fee.

The upfront interest from my TB pays my one year rent with some good change to flex whereas the capital would not have built me a bungalow in the same area. I no come Lagos come build house. Na money i come make for Lagos.

DigitalMallam:
I'm hoping 02/10/2019 Tbill rate climbed to 14% amidst speculation of Naira devaluation. 2019 rates at a glance.

I am hoping for better rates in Dec/Jan for 362 days.

Fingers crossed

Why building to live in or making profit from rent is the latest type of self-scamming in town.

I was discussing with a friend and we ran the simple analysis. Buying or building a house (duplex) costing you about 40 - 45m in a choice area including cost of land, building et all. That same 45m annually at a modest tbills rate of 10% will offer you about 4.5m which can still afford you a decent rent of 2m (assuming you have a moderate taste) with a balance of 2.5m that can adequately take care of school fees and some family upkeep.

Meanwhile the 45m duplex built will require some 22years before it starts to payoff or break even! This is not to consider the fact that a 20-year old house is already becoming old, maintenance ridden and of course boring. In a stricter sense when the kids are grown and someday leave the house you spent fortune to build, it no longer becomes welcoming as they move to boarding house or out of the country for further studies.

Whereas a rented property gives you the opportunity to move around from one part of town to another and still have a decent income to fall on, or utilize especially in this economy where there is no job security.

On the other hand in building to rent out. Statistically it goes to say that rents generate about 5-10% ROI and not profit to the owner annually.This translates to about 15 years before you start to make any profit from an investment of about 45m! Moreover, when a house is rented out the first rents are easy to get but subsequent rents suffers from what basic economics call diminishing marginal utility...lol

This is not to say building a house is bad or wrong but you can slowly use proceeds from your tbills and other sources to do this. Plan to build the house over a long period as a form of retirement home to present to yourself and spouse after a hardworking life or relocate out of the country as the case may be. This is obviously when the kids are already gone to college and the nest is becoming empty.

NL1960:


I normally tell people that a young man having in his mind to build a property to live in just to be called 'landlord' is archaic. You will hear some people say 'na rent i go die put'. I believe property is worth it when it is an estate with several flats.

I live in a 6 flats compound. Four of us that are the early occupants pay our rents constantly. The Landlord then saw that as a weakness and opportunity to exploit and started increasing rent anyhow. He was trying to increase our rent to catch up with the new tenants. One flat became vacant and it took 6 months to get a new tenant. The rent of the new tenant expired and has not been able to finish paying and now another rent is due. Another flat became vacant and it took 9 months to get an occupant. We were now surprised when the landlord gave us an increase for the next year rent and it was just between 8-10%. This is somebody that will wake up and do 40% and say 'anybody that does not want to pay should pack out'. Iam sure he was now starring at the prospects of 4 flats being vacant as we had already made up our minds that if he does his 30-40% again, we will pack out. A tenant is still owing part of a year with another year due. The new tenant is yet to complete agency and agreement fee.

The upfront interest from my TB pays my one year rent with some good change to flex whereas the capital would not have built me a bungalow in the same area. I no come Lagos come build house. Na money i come make for Lagos.

There is nothing archaic in a young man first building a property to live.....
It is the first law of investment ...... if you can afford it ....
You can save the rentage cash and use it in other investment vehicles over the years...
No one will ever tell you that TBills has its own bad days too...
We have seen the days of 2% -7%.... each invst class simply has its bad days and good days...

Willie2015:


There is nothing archaic in a young man first building a property to live.....
It is the first law of investment ...... if you can afford it ....
You can save the rentage cash and use it in other investment vehicles over the years...
No one will ever tell you that TBills has its own bad days too...
We have seen the days of 2% -7%.... each invst class simply has its bad days and good days...

Also realize that with tbills your liquidity is very high. You have the chance to via into some other business venture whenever the rates are not gelling.

In investment "cash is king"!

A home is beyond just structures ,we get connected to ours this value cannot be gotten from a rented place.....we connect with the neighbourhood for life ,kids make friends etc..... we integrate into that community ....i don't advice young investor to use up huge capital ,

Ijeoma660:
Why building to live in or making profit from rent is the latest type of self-scamming in town.

I was discussing with a friend and we ran the simple analysis. Buying or building a house (duplex) costing you about 40 - 45m in a choice area including cost of land, building et all. That same 45m annually at a modest tbills rate of 10% will offer you about 4.5m which can still afford you a decent rent of 2m (assuming you have a moderate taste) with a balance of 2.5m that can adequately take care of school fees and some family upkeep.

Meanwhile the 45m duplex built will require some 22years before it starts to payoff or break even! This is not to consider the fact that a 20-year old house is already becoming old, maintenance ridden and of course boring. In a stricter sense when the kids are grown and someday leave the house you spent fortune to build, it no longer becomes welcoming as they move to boarding house or out of the country for further studies.

Whereas a rented property gives you the opportunity to move around from one part of town to another and still have a decent income to fall on, or utilize especially in this economy where there is no job security.

On the other hand in building to rent out. Statistically it goes to say that rents generate about 5-10% ROI and not profit to the owner annually.This translates to about 15 years before you start to make any profit from an investment of about 45m! Moreover, when a house is rented out the first rents are easy to get but subsequent rents suffers from what basic economics call diminishing marginal utility...lol

This is not to say building a house is bad or wrong but you can slowly use proceeds from your tbills and other sources to do this. Plan to build the house over a long period as a form of retirement home to present to yourself and spouse after a hardworking life or relocate out of the country as the case may be. This is obviously when the kids are already gone to college and the nest is becoming empty.

Good point on the bold. Iam already considering moving from my rented 3-bedroom flat to 2-bedroom flat. All my kids are in boarding house which effectively means that their rooms are only occupied by them for just 3 months in a year. It will become worse if i decide to move them abroad for higher education. There is somebody on my street who was recently ejected by a bank for owing loans he took to build his massive duplex. All his daughters are married and the son does not stay there. So he is just in the massive duplex with his wife and he is owing banks. Now that he has been ejected and the house taken over, he will now go and rent an accommodation.

ahiboilandgas:
A home is beyond just structures ,we get connected to ours this value cannot be gotten from a rented place.....we connect with the neighbourhood for life ,kids make friends etc..... we integrate into that community ....i don't advice young investor to use up huge capital ,

Agreed but this was when we still had closely knit communities and neighborhoods not this age and time where cars are wound up, window blinds close up and houses are fenced up! People rather belong to a digital community or whatsapp groups than live in a real world...lol!

This is NOT going to change anytime ever

I live in an apartment where we have had times when as neighbors we stayed for months without seeing each other though we have a whatsapp group to address common issues of interests.. #fact

Willie2015:


There is nothing archaic in a young man first building a property to live.....
It is the first law of investment ...... if you can afford it ....
You can save the rentage cash and use it in other investment vehicles over the years...
No one will ever tell you that TBills has its own bad days too...
We have seen the days of 2% -7%.... each invst class simply has its bad days and good days...

I don't see anything wrong in a young man building a house to live if he can comfortably afford it. To be honest with you, he is right, it is just that we all like the prestige that comes with being called a landlord or attending landlords meeting. My younger brother completed his house in Abuja two years ago, as I am typing now he has not moved in. I spoke with his wife to know why they are still in a rented apartment, she responded that if they had known what they know now, they would not have built that house. They are still in Wuse 2, while the house is in Dutse Alhaji. They are looking for a responsible tenant to rent the bungalow.

Willie2015:


There is nothing archaic in a young man first building a property to live.....
It is the first law of investment ...... if you can afford it ....
You can save the rentage cash and use it in other investment vehicles over the years...
No one will ever tell you that TBills has its own bad days too...
We have seen the days of 2% -7%.... each invst class simply has its bad days and good days...

That is the thinking which i said is archaic. If for instance, a young man has N5m, that cannot build him a property in a choice area. He can only build in the outskirt for which he will need to pay heavily on transport to get to work on the island or mainland. But if that N5m is on TBs or Bonds at 10% for 1 year, he gets about 500k which comfortably rent a decent accommodation for him while steadily increasing his investment. If for instance, after building the property, he looses his job, will he chop the property?. He might now need to sell the property in order to have some cash.

Today stanbic secondary NTB rate are
66 days.......11.4 perc

143days......12 perc

332 days.....12.9 perc

Ijeoma660:


Agreed but this was when we still had closely knit communities and neighborhoods not this age and time where cars are wound up, window blinds close up and houses are fenced up! People rather belong to a digital community or whatsapp groups than live in a real world...lol!

This is NOT going to change anytime ever

I live in an apartment where we have had times when as neighbors we stayed for months without seeing each other though we have a whatsapp group to address common issues of interests.. #fact

I really don't how to explain it may be when u start approaching 50 years u will understand .....it beyond just having money in the bank in tb ....i have a personal resident of like 30m and above average investment in tb ,and bond ....my home can generate 1.5 m if I choose to rent out or generate 3.5m if I put in t.b but there is an inert happiness the home bring ...no tenancy agreement , so stupid letter from landlord no quit notice, I can't renovate any time ,I can add improvement

NL1960:


That is the thinking which i said is archaic. If for instance, a young man has N5m, that cannot build him a property in a choice area. He can only build in the outskirt for which he will need to pay heavily on transport to get to work on the island or mainland. But if that N5m is on TBs or Bonds at 10% for 1 year, he gets about 500k which comfortably rent a decent accommodation for him while steadily increasing his investment. If for instance, after building the property, he looses his job, will he chop the property?. He might now need to sell the property in order to have some cash.

if rate fall to 6 percent? 0r your bank loose bid and landlord increase the rent how will u do ?

NL1960:


Good point on the bold. Iam already considering moving from my rented 3-bedroom flat to 2-bedroom flat. All my kids are in boarding house which effectively means that their rooms are only occupied by them for just 3 months in a year. It will become worse if i decide to move them abroad for higher education. There is somebody on my street who was recently ejected by a bank for owing loans he took to build his massive duplex. All his daughters are married and the son does not stay there. So he is just in the massive duplex with his wife and he is owing banks. Now that he has been ejected and the house taken over, he will now go and rent an accommodation.

he should sell the house and pay the bank the house wasn't really his ....he didn't cut his coat according to his size

ahiboilandgas:
I really don't how to explain it may be when u start approaching 50 years u will understand .....it beyond just having money in the bank in tb ....i have a personal resident of like 30m and above average investment in tb ,and bond ....my home can generate 1.5 m if I choose to rent out or generate 3.5m if I put in t.b but there is an inert happiness the home bring ...no tenancy agreement , so stupid letter from landlord no quit notice, I can't renovate any time ,I can add improvement

Very valid point sir.

Like i said, building should not be at the expense of investing as the later is guaranteed (low risk), pays more and flexible. In your case you must have paid your dues and you deserve a home built from profit/proceeds not loans. Though this takes longer.

Young investors have nothing to gain from being called "landlord" early in life while they run the risk of loosing their sources of livelihood and are caught in the middle of no where owning a big house with no income to run their families.

IamR:

I don't see anything wrong in a young man building a house to live if he can comfortably afford it. To be honest with you, he is right, it is just that we all like the prestige that comes with being called a landlord or attending landlords meeting. My younger brother completed his house in Abuja two years ago, as I am typing now he has not moved in. I spoke with his wife to know why they are still in a rented apartment, she responded that if they had known what they know now, they would not have built that house. They are still in Wuse 2, while the house is in Dutse Alhaji. They are looking for a responsible tenant to rent the bungalow.

Most times these houses built by young investors are far away from the city center where social amenities are scarcely available and are not where you like to raise kids! if they are rental apartments, the rents are not usually what you envisage or planned it would be. My in-law built a 2 storey building of 9 nos of 2 bedroom flat. To rent out the building was tough. He built a personal house off town which he could not stay in owing to security and proximity reasons but still living in the city center in a rented apartment.

ahiboilandgas:
if rate fall to 6 percent? 0r your bank loose bid and landlord increase the rent how will u do ?

That is the element of risk that is in every investment. I will prefer that risk to going to build a property in an outskirt for N5m. If i want to sell, there is no guarantee that somebody will buy. If bank loose bid, you go for secondary market. I did not wait for October 2 primary auction when my two TBs matured. I simply did 339 days secondary market. That one don cover my one year rent already with landlord increase and i still get change left.

ahiboilandgas:
he should sell the house and pay the bank the house wasn't really his ....he didn't cut his coat according to his size

Sell ke?. Do Nigerians sell their house even if they are dying of hunger?. You want that feeling and extra bounce when called Landlord to disappear?. Anyway, the man went to court. He got a judgement against him. He went to appeal and lost. Before he could say jack robinson, court bailiffs just came one evening and booted him out.

Ijeoma660:


Most times these houses built by young investors are far away from the city center where social amenities are scarcely available and are not where you like to raise kids! if they are rental apartments, the rents are not usually what you envisage or planned it would be. My in-law built a 2 storey building of 9 nos of 2 bedroom flat. To rent out the building was tough. He built a personal house off town which he could not stay in owing to security and proximity reasons but still living in the city center in a rented apartment.

You just stated what the wife told me. She said, she can't raise her kids in that kind of place, coupled with the distance to the city center.

Real estate is a long-term investment, T-Bills is not. Let's not forget this.

No one buys a land or builds a house and expect a return on investment in 91 days, 1 year, or 5 years. It could take 20 years or more.

However, there is no guarantee that a liquid investment like TBills will remain after 5 years. Just a little liability, and everything is gone. The easier it is to sell/liquidate, the more difficult it is to sustain over a long period.

https://www.dailytrust.com.ng/inside-abujas-empty-luxurious-estates.html

Just saw it.

IamR:
https://www.dailytrust.com.ng/inside-abujas-empty-luxurious-estates.html

Just saw it.

Some developers just fail in the area of research and forecast.

Access Bank rates today 45 days -----9% 80days ------10% 150days-----10.75% 325days------12%

Can we have other banks today's rate house?

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