ahiboilandgas:
me know this na since 1999 ,I bought my first land at 23 years 720k built in 2004 100 by 100 , I didn't have enough money the next was up for sale for 800k didn't have money but I was sure it will blow ....it was sold for 15 m in 2016 it pain me , I also build a house on my own in 2006 ...my Neigbour are house of rep members ,commissioner ,above average people ....i never regret that move my dad praised me my bq was built for 3m in 2006 is now on rent for 500k , I made the 3 m back since .....it not for all areas sha and must not be Lagos

Finelinks:


Suffering from DK effect?
I asked you a simple question.

Why did linda buy a house?

Why didn't she invest it in Tbills to get 145m per annum, then use 100m to rent choice house and keep 45m?


Or she didn't need extra money?


You were busy citing names i used in context, out of context.

Is that how you read? You cherry pick?

Gosh!

NL1960:


Linda now bought when she had built up her funds and not before. If her ROI in TBs is lower than her other investments, she will not invest in TBs. Do you know if she has investments in stocks?.

You have also refused to answer my own question which is "why did Linda not go to build or buy her personal house when she made 5m or you thought she made the 850m for her house at once"?.

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.

NL1960:


This is what we are saying. You bought land as a young man and not built a personal house at that age with your first capital. You could have gone to build your personal house in one remote place at that age in order to be called landlord but you refused and instead opted to build up the funds and iam sure you were on rentage then.

This is what iam trying to tell @Finelinks.

Bought your first land in 1999 and built your personal house 8 years later in 2007. That is planning and building up of funds. You could easily have built the personal house in 1999 but you did not.

emmanuelewumi:
It is good to be diversified, have a business or a marketable skill, invest in real estate, Treasury bills, Eurobonds and the stock market.
The most important thing is to invest in things that generate residual income, they keep on generating money whether we are there or not, whether we are sick or no more. We also need to consider inflation.

A 3 bedroom flat around airport road Lagos was about 60k per annum in 1994, but you will need a minimum of 600k to rent that same apartment in 2019.


A time will come when we will not be strong to hustle and struggle for jobs and businesses, when we will not be able to pay rent again, that is why it is important to have a plan B on how to own our modest house, so that we will not saddle our children with the responsibility of paying our rent when we get old and frail.


We have a housing deficit of about 18 million housing units in Nigeria, anyhow we see there will always be a demand for decent accommodation for the teeming population of Nigerians.
It is very important for something urgent to be done about the overpriced properties in Nigeria.

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

vacanci:


Living in a 2 bedroom duplex in Abuja for 5 years now. House was sold to landlord for 23 million Naira.

Rented for 800k annually.

House was put up for sale recently and @ 15 Million naira, buyers were requesting to buy and pay in installments. Landlord refused to sell.

This is practical example that property cannot always appreciate. It's mere speculation and elements of luck and opportunities

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

Finelinks:

Thanks jare.

They are just busy shouting tbills tbills. One the other day said he doesn't entertain visitors and doesn't visit too because of tbills.

He doesn't go out too. Nothing at all.

He sees everything as liability.
Grim.

Bbbwings:

I took the time to do the math.
Let's say he bought the house just as you were occupying your flat.
Let's say he invested the 23 million instead in Tb compounded at 10% Base rate for 5 years
The money would have grown to using
A=P (1+r/n)^t
Aprox 37million

For, 5 year rent on the duplex, he got 800k×5= 4 million

Let's say he eventually got the 15 million on the duplex sale.
Total money he got on the duplex after the five yer period = 4million+ 15million
=19 million

So he theoretically lost
37 million - 19 million

18 million in five years. To bad investment decision.
Essentially, he could buy the house from himself out of thin air, with some change 3million left.

Fu...ck

Finelinks:


See why people fail comprehension in high schools.

He built on same land you called remote village. SAME LAND SIR. And now has commissioners as neighbours.

And hey, don't turn a volte face. Why applaud him? Or you no longer know your stance? Why approbate and reprobate?

You would deem it a liability even in 2004 that he built or did he tell you he had 1 billion in 2004?

Going by your argument, he would have invested it in Tbills and use the interest to rent.


As per my question, you have tried to evade it or wriggle out of it.

At any rate, it seems engaging in tergiversation is your forte. I may make no further rejoinder to this.

NL1960:


You are a very funny man. I do not have strength for round and round arguments. You like round and round arguments sha. Not surprising as you are mostly active in the Romance section. Na that place and politics section dem dey do round and round arguments.

He built on the same land after 8 years and not immediately he bought it. Note the key points in the post and in mine. He also used funds built up over an 8 year period to build. Simple and straight forward.

My advise to any young person is that he/she should build up his/her funds and use the proceeds to build that personal house. It is an advise and is not compulsory that the advise is taken. If you come into 2m-3m suddenly as a young person and decided to go and use it to build a personal house especially when you are still single, na your decision be that. Wetin concern vulture with plaiting of hair?.

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

emmanuelewumi:


Hope you read where I talked about the need to be diversified?

zohan101:
You could have passed this same message without sounding insultive to Mr Emmanuel.He did mention about diversification which includes other forms of investments..

Please lets learn to read the entire commnts and comprehend before responding.This thead has helped educate alot pf people , lets try to keep our debate and conversations healthy..Thank you @all

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

NL1960:


You are a very funny man. I do not have strength for round and round arguments. You like round and round arguments sha. Not surprising as you are mostly active in the Romance section. Na that place and politics section dem dey do round and round arguments.

He built on the same land after 8 years and not immediately he bought it. Note the key points in the post and in mine. He also used funds built up over an 8 year period to build. Simple and straight forward.

My advise to any young person is that he/she should build up his/her funds and use the proceeds to build that personal house. It is an advise and is not compulsory that the advise is taken. If you come into 2m-3m suddenly as a young person and decided to go and use it to build a personal house especially when you are still single, na your decision be that. Wetin concern vulture with plaiting of hair?.

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

Just2endowed2:
I beg this property talk should die down a bit and let's focus on why this thread is here. No doubt, I learnt many things from you guys.

So let's talk tb and what affect it...

Barrytone:

Building that house with your basic capital is wrong. Grow the capital before using the proceed of your business to build a house. Dont take your first 50m to build a house, after the house what else? Grow the money in a risk free portfolio and get a stand alone duplex and still keep change. In few years you can use your profits to buy or build a house with your capital intact. I own houses and a regret owning them too early, they bring little or nothing to the table and as a speak what they bring is still the money i invested, no sight of interest in many years to come. I have one tenant that is due out by 31st of October, i pray he leaves in peace but am sure he wouldn't. I will pay a lawyer and lawyer has advise we get a "bailiff". Front the outside of the house i can see damages to the building already. Meanwhile, my tbills interest and maturity drops unannounce even to me most times. I am a kind of person that dont have time, always too busy so any day i spend dealing with a tenant other than getting rent is a big minus to my life.

Pojomojo:
I am very much interested in the bolded.

Barrytone:


He meant we get quit notice from the court