Hello guys,

Whats a preferable investment option between buying of First bank shares and a plot of land. Either of the two is for long time investment . All advices will be appreciated. A close friend of mine with 300k naira savings was requesting for an advice.

Please assist.

300K is much for long term investment.
I would advice both. 1st bank is the foremost bank in nigeria investment there for long term is almost a sure bet considering niaja factors. Land is certainly a sure investment especially i nigeria with alot NRN abroad looking to get something in nigeria by all means after 'hitting' abroad! For example i got a plot of land at the outshirts of owerri for 50k in 1996,recently(Feb.07) i put word out thats its for sale, response is 1MILLION upwards. Now this is land that is fallow ok my uncle farms on it as care taker.
I would go for land for long term always remeber thats 10years. How much would be 50k of 1996 be now and the difference is what is your gain THE ROI is well yet to calculate that,
Also depends on how long is you term.
Shares u can trade if you need money urgently becos niaja is an emerging market now so things are just starting to pick up,
But if its disposable money then both i would suggest but ore on land,

Bank shares are just too volatile, so the plot of land is a much better investment, especially if it's at a good location:
It may or may not appreciate in value, but it cannot depreciate unless there's a major earthquake in that area!

My friend,

Hurry and secure a plot of land PREFERABLY from a trusted source like the Federal Government, so that you don't lose both money and Land. Landed Property remain the hottest in Nigeria. Guaranteed multiple returns in as little as 2 or 3 years depending on the rate of development of such.

The same plot of Land that went for 80k in Mowe Ibafo in 2001 is now being sold for 1.2 million, you can imagine if you were to sell 10 now.

i bought a plot of land in sangotedo (after ajah) late 2004 for 700k, my neighbour that just sold his recently sold it for =N=3.8m which comes to more than 500% appreciation in less than3 years.

to that extent, ill vote for real estate any day especially for long term investment. the only comma would be getting the land from a genuine source. land palaver in naijais a different story (omo onile and stuffs like that)

@all
awolumate see landed props is it,
@eko4show
that was my props with lagos, omo nile alone can give you head ache. guess from federal govt is even better but
@christino wont that mean you need connections to get one.
would appreciate infor if any
cheers

A piece of land is the best option. Its one of the few commodities that never depreciate in value. Its always there no matter what. But be careful you dont buy a land in dispute or get conned. Deal only with authentic and verified sources and get a good lawyer to back you up. Property business is a very good retirement option.

One:

A piece of land is the best option. Its one of the few commodities that never depreciate in value. Its always there no matter what. But be careful you don't buy a land in dispute or get conned. Deal only with authentic and verified sources and get a good lawyer to back you up. Property business is a very good retirement option.

The comments of Óne'are just my sentiments exactly. I only wish to add that you should advise your friend to immediately take possession of the landed property if he goes ahead to buy it and not think for an instance that having title documents (e.g CSCS Statement in case of share/stocks) is enough.
Cheers!

Go for land and don't mind any fictitious things.

I really don't understand why the price for land in Nigeria continues to go up, I will definitely recommend investing in Land, however I will advice that you buy from a reliable seller.

Nigeria Stock Market is making alot of buzz, but stock are very complicated to understand, even in the U.S where there is alot of regulations to protect investors, we still have people manipulating the stock market, through insider trading. For a place like Nigeria I don't think buying stocks is a better risk.

Meanwhile I'll still advice that you still buy a plot of land and reserve some change for some risky business if you can.

The guy asked for First Bank shares and not just any bank or company's share. First Bank is one of the best banks in Nigeria and they are doing very well in all parameters. I have First Bank shares and my investments in it has doubled greatly. For instance, i bought First bank shares at N18.00 in 2002 and today it is around N40.00, with yearly bonus shares and dividend and believe me, it'll still get to around N55.00 after their PO. Calculate the returns based on the units purchased.
For Landed property, the risk is very high if you dont get it from a good source. I had been duped before and it took me like 3 years before i could get my money back from the seller(who was a friend of mine). But if you get it from a good source, it's a good investment too.
Moreover, it's very easy to dispose shares but not landed property.

Thanks

I think real estate would be the best one to go for but you can get a plot of land-as you said -for less than 300K.but if you know how to play your cards right, you could invest in both. you can spent 3/4 on the plot of land ( i guess people use different measurement) and spend the other 1/4 on buying stocks ( i mean stocks of a correct company) honnestly if i was the one , this is what I'll do.
@ fammie, I know what u trying to say here but to be honest it better to invest into assets thats you can keep for long and you know you are the one controlling your investment statement than invest in first bank as you said

Zenith Bank shares are also doing pretty well, but. . . . like every investment, there is a risk involved,

you can also try mutual fund like ibtc's(they grantee you 50% yearly return on your investment). the good thing about this is that you don't av to worry your head about which shares to buy and when to sell, they do that for you

Hello all,

While my heart goes for land, the reality of the day in this country for an up-comming investor is that shares is the way to go. The reason is just cos of the HUGE capital required for land/real estate properties. awolumate said his friend has N300K. Can anyone in the house tell me where to get a plot of land for that amount in a resonable location and from genuine source (e.g government)? With shares (expecially like that of first bank with almost guaranteed average yearly bonus of about 1:4), you can build your wealth gradually, and when it grows to a certainn level, one can conviently divert to real estate.

with the way things are going,it is safer to invest in stocks

either way your friend goes, it's still wise to invest.

1st Bank is over 100years old and so there's no folding up of the bank. like it's name implies, it is the 1st amongst all banks in naija. being a 1st Bank shareholder wouldn't be a bad idea as your friend will reap his fortunes after many many years to come. so that is a good option.

buying a land on the other hand is equally good. 1st of all, the location of the land will be the major issue. getting a land in lagos for 300k might seem impossible. he should be looking at the rural areas (like Akute, Alakuko, Sango Ota in Ogun state). i haven't gotten this week's edition of Castles Weekly (a classifieds nigerian magazine). however, you can advise him to check www.castlesweekly.com or just pick up the magazine for N100 if he's around Lagos/Ibadan. my major fear for a person who will be getting a land in lagos and not building on it immediately is the omo nile issue. fencing the land round might be a positive move, but not protective.

whatever his decision is, please let us know so we can feel good that we helped.

i'd do the shares. shares are a good investment. besides you can diversify to reduce risk. as for land once you buy from the wrong source, you don finish be that.
try first bank shares. you wont regret it.

@spiolt,
i want to believe u can still get land for real, from the right source. I am weary of lagos though!!!

I would still prefer u split your investment with shares and if possible land; there are land u can get for 150k outside lagos!!!

@all
I appreciate every imput and advices you guys have been giving. It seems that both are good investment, hence my advice to him. I called him today and informed him to split the saving into two ,Fortunately he got an offer for 250k plot of land in Ogun State . I adviced him to go ahead and buy the plot of land of course through the right channel. He is from that town so he should know how to go about it. Then invest the remaining 50k in First bank shares. Both are for long term Investment anyway.
You guys have been great with all ur inputs. Once again Thanks .

thank you for thanking us

Could someone please tell me why Guinea Assurance is still .72kobo if it is true that it met the requirements of the recapitalisation exercise. Am I missing something?

anytime, awolumate!

please let me where i can get secured land free from omo onile, outside and inside lagos ,cheap one too,i just won start some fisheries stuff on it while i do my extra year in school, please advice,thanks for this forum

i'm a new entrant into the shares biz.bought a few shares last december when i went home 4 xmas,including dangote(a substantial amt!).
i read recently that the offer was oversubscribed so aliko plans to refund people's moneys with interest.anybody out there knows how i can find out whether my purchase/subscription went thru,especially now that the price is nearly 3 times the IPO.i'l appreciate any replies.

@ marco

You'l have a refund if you bought over 50,000 units. Call 01-2708930 Zenith registrars.
They'l give you the info you need. You can confirm your holding and find out if any money was sent back to you.
good luck

Back to the topic,
based on my records, my initial stock market investment of 600k in Dec of 04 is now worth >N7m. If you know of any land deal that appreciated 1100% in 3.5 yrs, please let me know! The key is to learn how to find relatively undervalued stocks and buy them before other people realize it.

You should get the book "Investment for Dummies" by Eric Tyson (pls don't take offense by the name). He compares both forms of investment (property vs Stocks) and shows that stocks beat real estate in the long run. It's also a good reference book.

Either way, careful & legal investment in either will give you good returns.

if u must buy land,buy one in the choice part of town,but buy one that has an abandoned property on it,why,people sell with emotions.one with no money to complete his house project will sell it for less,u buy it for less and renovate it for less,then sell it for much.land never depreciates but, if shares buy shares from start up companies.their shares are cheaper.buy from those that have good marketing abilities.if mtn should sell shares i'll buy their's.remember big companies were small once,sell ur shares in a year.help others to invest their money.if u want more money,help those who have money to increase or mutiply their money by doing these things i've stated,help them find prospects.and u will be rich.call me to give u 7 areas u can invest for free,no charges for my services.08037667755 is my number.

landed property is better but needs more money to invest than shares buying

It depends on what the guy has in mind to do.If he is interested in longterm investment, then a piece of land is appropriate .Though nowadays you might not get a prime location for that amount,if u are thinking of short term. Buying bank shares, not just 1st bank now, with a bit of luck will yield more than double that amount invested by next year cos we will see even penny stocks (priced lower than the 10naira mark) growing to above N10.So the decision is up to you.

you are right, he should think of how much he has before venturing into an investment.