currentprice:


most of us learn that in hard way. one of my bad experience is one I have around one polytechnic with d intention to make cool cash from student. lol first year was good as payment came easy. the following payment was not coming atall excuses upon excuses delaying paying till they finish school to run away. lol student sublet sitting room, sublet corridor even kitchen to their fellow student. at d end when they left even their first payment not cover renovation money i spent.

Next time, get a property manager for the property

Locotrader:


It is very sweet if the company didn't go bankrupt

There is a correlation between a dividend paying stock, a company that increases its dividends and long term sustainability.


A company will not go bankrupt overnight, it must have given the signs 24 months earlier, when the fundamentals start to deteriorate

sonofElElyon:


Problem is that you sought to manage yourself. There are currently studio apartments (few units remaining) in a well managed hostel in akoka near unilag built by very reputable developers (one of their projects is in Eko Atlantic City) being sold per per apartment at N13m (few units remaining). They will manage for you and the expected yield is N850k per annum minimum. It's fully completed

That is at yield of 6.5%.

That same N13 million invested in FGN bond will pay a coupon of about N2.3 million.

Streetinvestor2:
So why are they selling it.why not keep it and be collecting the minimum rent of 850k if is that simple, lol

Developers are smart guys, they know that waiting for the rent will give a lousy return

emmanuelewumi:



That is at yield of 6.5%.

That same N13 million invested in FGN bond will pay a coupon of about N2.3 million.

You've forgotten capital appreciation though.. it was selling N11m just 2 months ago. Property appreciates. Now N13m. Also rent will be reviewed on a regular basis like biennially or so. Also you could opt for short let which offers far higher yield. The N850,000 is minimum and based on annual tenancy not short let / airbnb.

emmanuelewumi:



Developers are smart guys, they know that waiting for the rent will give a lousy return

They build to sell. Total of about 30 units. More than half already sold.. You've forgotten capital appreciation though.. it was selling N11m just 2 months ago. Property appreciates. Now N13m. Also rent will be reviewed on a regular basis like biennially or so. Also you could opt for short let which offers far higher yield. The N850,000 is minimum and based on annual tenancy not short let / airbnb.

Loco, Pa Emma, Currentprice,Mcy. Thank you guys for all that God have use you all to do in my life. Before I buy any stock I ask myself, is Pa Emma going to buy this stock? and answer myself. I moved into my house this year Easter. I'm 75%ds and 25%uba. God Bless us all.

sonofElElyon:


They build to sell. Total of about 30 units. More than half already sold.. You've forgotten capital appreciation though.. it was selling N11m just 2 months ago. Property appreciates. Now N13m. Also rent will be reviewed on a regular basis like biennially or so. Also you could opt for short let which offers far higher yield. The N850,000 is minimum and based on annual tenancy not short let / airbnb.

A studio apartment in a block of 30 housing unit does not have a certificate of occupancy, I can't use it as a collateral security for loan from a financial institution.

sonofElElyon:


They build to sell. Total of about 30 units. More than half already sold.. You've forgotten capital appreciation though.. it was selling N11m just 2 months ago. Property appreciates. Now N13m. Also rent will be reviewed on a regular basis like biennially or so. Also you could opt for short let which offers far higher yield. The N850,000 is minimum and based on annual tenancy not short let / airbnb.

I will rather be a developer.

Except if I can see cheap properties from highly motivated sellers

Just 2 weeks ago, someone who was japaing sold a property of 2 units of 3 bedroom apartments for N12 million. Although he would spend another N3 million on legal and change of ownership paper works at lands bureau

Rent from the property is N1.3million

emmanuelewumi:



A studio apartment in a block of 30 housing unit does not have a certificate of occupancy, I can't use it as a collateral security for loan from a financial institution.

Let's not argue. You can register your deed of assignment for the flat at the land registry alausa and use as collateral.. I'm a lawyer. I know. You can ask your lawyer. He'll tell you same thing. If you don't find it an interesting investment I totally respect your choice.. one man's meat.. there are however other real estate opportunities that present great returns especially when you identify reliable developers and you buy in at construction stage. You could end up selling at up to 100% ROI or more upon completion (depending on how early you buy in and how long you wait to sell). I do real estate and I've seen this happen over and over again

emmanuelewumi:





I will rather be a developer.

Except if I can see cheap properties from highly motivated sellers

Just 2 weeks ago, someone who was japaing sold a property of 2 units of 3 bedroom apartments for N12 million. Although he would spend another N3 million on legal and change of ownership paper works at lands bureau

Rent from the property is N1.3million

Yes. Good rental yield there. there are however other real estate opportunities that present great returns especially when you identify reliable developers and you buy in at construction stage. You could end up selling at up to 100% ROI or more upon completion (depending on how early you buy in and how long you wait to sell). I do real estate and I've seen this happen over and over again

sonofElElyon:


Let's not argue. You can register your deed of assignment for the flat at the land registry alausa and use as collateral.. I'm a lawyer. I know. You can ask your lawyer. He'll tell you same thing. If you don't find it an interesting investment I totally respect your choice.. one man's meat.. there are however other real estate opportunities that present great returns especially when you identify reliable developers and you buy in at construction stage. You could end up selling at up to 100% ROI or more upon completion (depending on how early you buy in and how long you wait to sell). I do real estate and I've seen this happen over and over again

The paper works for the deed nko. I am still assisting the buyer of the property we sold to get his deed of conveyance registered almost 12 months after the purchase of the property

Oga sonofElElyon, there is no real value in rental property or tenancy except for passive income at old age or future sale. You make money from build and sell, or buy and sell.

I have a property build since 2011, I have not recovered the cost up till now. The one in my village the rent does not even make sense.

However, there is money in lease property for development, we lease the property build and sell some of the units and retain some units for cash flow. You can be profitable within two years, max is 3years. Compared that with buying land or buying units of flat.

I recently leased a property worth 26M for 15years. Premium is 2M. Estimated construction cost is 30M

Estimated minimum first year income is 25M. Sell 5units@4M each for 14years lease , rental income on remaining units is 5.7m.

sonofElElyon:


Let's not argue. You can register your deed of assignment for the flat at the land registry alausa and use as collateral.. I'm a lawyer. I know. You can ask your lawyer. He'll tell you same thing. If you don't find it an interesting investment I totally respect your choice.. one man's meat.. there are however other real estate opportunities that present great returns especially when you identify reliable developers and you buy in at construction stage. You could end up selling at up to 100% ROI or more upon completion (depending on how early you buy in and how long you wait to sell). I do real estate and I've seen this happen over and over again

igbosoro:
Oga sonofElElyon, there is no real value in rental property or tenancy except for passive income at old age or future sale. You make money from build and sell, or buy and sell.

I have a property build since 2011, I have not recovered the cost up till now. The one in my village the rent does not even make sense.

However, there is money in lease property for development, we lease the property build and sell some of the units and retain some units for cash flow. You can be profitable within two years, max is 3years. Compared that with buying land or buying units of flat.

I recently leased a property worth 26M for 15years. Premium is 2M. Estimated construction cost is 30M

Estimated minimum first year income is 25M. Sell 5units@4M each for 14years lease , rental income on remaining units is 5.7m.

Like i said it is better to be a developer, or go into commercial real estate like warehouse, car park, event centers, shopping complex or have corporate tenants like hospitals, eatery, schools etc.


Residential estate is the easiest and the best for the majority of the population

https://punchng.com/elumelus-wife-firm-acquire-23m-units-of-uba-shares/

What can we expect from UBA?

Can UBA get to 30 Naira?

Except in rare mispriced situations, I think it is more difficult to get deals in real estate than in stocks. The real estate market is much more efficient while cheap stocks abound.

The transaction costs are way higher in real estate compared to stocks (at least 10% agency and legal for both purchase and selling compared to 1.5% for stocks).

The capital outlay per investment is higher in real estate while in stocks you can invest small small (like with 140k as mentioned here).

In real estate you face a concentration risk because of the high capital outlay.

How about liquidity? Stocks can be easily liquidated compared to real estate and ploughed into a better stock investment as soon as you deem fit.

However, if chose stocks as your preferred, beware of the fact that you have chosen to be a LIFETIME STUDENT (I don't mind that personally). Adult education may not be easy at times.

You have to be watching and re-allocating your eggs in different baskets. That is the only way to convert 140k to 50m in 19 years, despite so many drawdowns, as has been mentioned here. ( i.e at least a 37% annualised return over such a long duration!).

Overall real estate, stocks and holding dollars are the best inflation/devaluation hedges in this country.

currentprice:


Lol what do u expect na. where u want see grave rubber profit if not in stock mkt.

UBA for example... okay u are not lucky enough to enter at below 7 but u enter @ 10 with 15m

interim dividend alone u must have received about 675k and nothing less than 3m is awaiting by April, if nothing bad happen to the bank o.

house rent built for 50m cant even dash u that profit nor load on Trucks

I share your opinion. The stock market is about the only legitimate means to make over 500% profit on one's capital within 12 months. Ever since understanding the stock market and also how cheap Nigerian stocks are, discussions about the profitability of other businesses hardly interest me.

emmanuelewumi:




Real Estate is the easiest and best route for most people, but for those who understand the financial market real estate might give lousy return.


When my mom died last year. As the eldest grandchild, I convinced my cousins to sell my grandma's house.

The property was old , rental income was less than N2.5 million per annum. Lawyer would take 10% of the rent, maintenance about 500k. Architect said we needed about N50 million to restructure and renovate the property in order to get a rental income of about N6 million


Property was sold in January 2023. My share was a little over N10 million, I added money to it and I have grown the fund over 200% in less than a year.

My cousin bought 4 plots of land he had to sell a plot below his purchase price in order to do paperworks.

Another bought an uncompleted building and would still need money to make the property habitable.


Meanwhile I have gotten dividends from Dangote Sugar, Nahco, and Access Bank

I can imagine at what price your grandma got the land, then the income it generated over the years from generation to generation and upon the 'old house' being sold by the beneficiaries, you as one of them was still able to pocket over 10m free money (not loan) which you invested with over 200%. Now can you imagine the % of profit made so far on the land since it was bought by your grandma?
Just asking for some here before they take some decision.

sophy17:




I can imagine at what price your grandma got the land, then the income it generated over the years from generation to generation and upon the 'old house' being sold by the beneficiaries, you as one of them was still able to pocket over 10m free money (not loan) which you invested with over 200%. Now can you imagine the % of profit made so far on the land since it was bought by your grandma?
Just asking for some here before they take some decision.

I have been the one managing the property for the past 5 years,the lawyer reports to me.


In a situation whereby you have 8 grandchildren scattered all over the country, property is old, rental income is low, about N50 million would be needed to make the property to be economically viable and nobody is willing to provide funds, I suggested allocating additional shares for those who will provide the fund, that did not fly.

So I took the best decision by selling the property. Two months after selling the property, Lagos State government sealed a similar property over structural integrity issues.


By the way, I sold 50% of the stock bought with the fund after getting over 200% return and invested in FGN bond the coupon is higher than the total rental income we generated from the property

I maintain this on my account to remind me of what I have learnt in stock exchange investment/trading...

I believe you misunderstood the 140k mentioned by Loco, he said he started with 140k that does not mean that he put that amount in the market and the thing grew up to become 50M.
Between then and now he must have added a lot more and probably also lost some. It is important to get the perspective before someone decides to put some money and go and sleep only to wake up 19 years later to ask where is his own 50M naira.

austinkenneth:
Except in rare mispriced situations...

The capital outlay per investment is higher in real estate while in stocks you can invest small small (like with 140k as mentioned here).

In real estate you face a concentration risk because of the high capital outlay.

... That is the only way to convert 140k to 50m in 19 years, despite so many drawdowns, as has been mentioned here. ( i.e at least a[b] 37% annualised [/b]return over such a long duration!).

...

emmanuelewumi:


The paper works for the deed nko. I am still assisting the buyer of the property we sold to get his deed of conveyance registered almost 12 months after the purchase of the property

You should've gone through a lawyer and done all due diligence before parting with money.. to be sure there won't be any hitch after payment. Also not all buyers actually bother to perfect their title at the land registry. If you are buying to resell you simply let the one who buys from you foot perfection costs since it's better to let him register in his name as he will be holding long term. If you buy a property under construction by reputable developers with the aim of selling at almost completion or upon completion for capital gains why pay for title perfection? In fact you may not even fully pay for the property before selling. You can just pay like 60% to tie it down. Then when it's at advanced stage of construction you can sell to someone who intends to live there and make some profit on your 60% deposit and move on.
Lastly I represent a real estate company in UK (for those who want to earn 10% net p.a minimum rental yield). Tenant already in occupation. Zero maintenance cost. Currently about to sign a referral contract with them so I can connect them directly with prospects. They'll of course pre qualify you to see if you'll be entitled to mortgage. Otherwise you can pay sale price upfront and earn your 10% minimum per annum. You can also sell at anytime. Prospects will deal directly with the UK real estate company. I will only do the connection. Real estate is wonderful.. and so are shares !

Pls, don't derail this thread...there is a right thread for property discussion....thank you..

ojesymsym:
I believe you misunderstood the 140k mentioned by Loco, he said he started with 140k that does not mean that he put that amount in the market and the thing grew up to become 50M.
Between then and now he must have added a lot more and probably also lost some. It is important to get the perspective before someone decides to put some money and go and sleep only to wake up 19 years later to ask where is his own 50M naira.

Abeg no kill me with laughter.'whr is my own 50m'

The game may be about to start with the big players

https://www.vanguardngr.com/2023/11/just-in-fg-revokes-licences-of-1633-mining-companies/

Boshins:
Pls, don't derail this thread...there is a right thread for property discussion....thank you..

Not possible to detail the thread.


You can start a discussion on stock market investment.

Correct investors are versatile and open to different investment opportunities

emmanuelewumi:



I have been the one managing the property for the past 5 years,the lawyer reports to me.


In a situation whereby you have 8 grandchildren scattered all over the country, property is old, rental income is low, about N50 million would be needed to make the property to be economically viable and nobody is willing to provide funds, I suggested allocating additional shares for those who will provide the fund, that did not fly.

So I took the best decision by selling the property. Two months after selling the property, Lagos State government sealed a similar property over structural integrity issues.


By the way, I sold 50% of the stock bought with the fund after getting over 200% return and invested in FGN bond the coupon is higher than the total rental income we generated from the property

I should have invested in bonds years ago, distractions is not good. You are the one that made interested in bonds,I have always been a dividend investor.

Bizibi:
I should have invested in bonds years ago, distractions is not good. You are the one that made interested in bonds,I have always been a dividend investor.

Invest in what you understand

emmanuelewumi:



Invest in what you understand

yeah but it is good to get into something new and profitable for me.

emmanuelewumi:



Invest in what you understand

Number rule of investment... In a layman's language invest in what you understand that works for you

Boshins:
Pls, don't derail this thread...there is a right thread for property discussion....thank you..

Well the info is somehow stocks related if you reason it well because they tell us where else to channel stocks money to

Please house, especially veterans who are dividend investors, how do you calculate dividend yield? Which price do you use for the calculation?
Example: For 2022 Financial Year, GTCO paid N.03 and N2.8, as interim and final dividend respectively.
On September 30th 2022 when interim dividend was paid, GTCO was N19.00. When final dividend was paid on May 11 2023, it was N24.00.

How can one calculate the annual dividend yield given the example above.
I be JJC, I need help.