Raider76:


CBN is also not helping matters. Don't know why they are holding the banks' H1 results, which will contain interim dividend declarations. Stanbic had to give an apology for an anticipated delay.

Access also did an apology

emmanuelewumi:
Someone said portfolio investors are one of the best tenants.

An investor uses his UBA dividends to pay his 2 children's annual school fees, uses Zenith bank dividends to pay his house rent.

You can imagine the disappointment he had when Tony cut UBA dividends?

I need to make myself clear about the first paragraph because I have been receiving calls and messages to debunk the statement about portfolio investors.

I was referring to cash flow or income investors.

Raider76:


This is scaring me. I have a tenement building that I am struggling to complete, and every body is warning me of the problems with tenents.

The only thing you may likely gain in having a tenement building is tying your money down for a long time and selling the building twice the money you spent building it after about 10 years. Beside that, be prepared to start receiving news of the well/borehole is not working, overhead tank is leaking, roof is leaking, tenants fighting each other, shower or toilet seat is no longer good, the gate needs to be repaired, thieves came into the house and they want you to raise the fence etc, all of these from the meagre amounts they are paying you.

Let me use one of the house I built for tenants as an example. The house is a block of 4 units of 3 bedroom flat. it was built in Ibadan in 2014 for around N32m (land inclusive). The annual rent is 350k for each flat; making N1.4 annually. But sincerely speaking, there is no year that you will get that N1.4m as a whole. Some tenants will not pay giving you stories, of which some are actually true. Infact, I have to engage the service of an agent (with 5% fee) to avoid all these head aches.

I would sell the house next year and put the money on a dividend paying stock from which I can benefit either from capital appreciation or dividend. However, this is not to say that building for tenancy is not good at all. There are some instances where you build on nice location where rents is juicy and high.

kolaish:
The only thing you may likely gain in having a tenement building is tying your money down for a long time and selling the building twice the money you spent building it after about 10 years. Beside that, be prepared to start receiving news of the well/borehole is not working, overhead tank is leaking, roof is leaking, tenants fighting each other, shower or toilet seat is no longer good, the gate needs to be repaired, thieves came into the house and they want you to raise the fence etc, all of these from the meagre amounts they are paying you.

Let me use one of the house I built for tenants as an example. The house is a block of 4 units of 3 bedroom flat. it was built in Ibadan in 2014 for around N32m (land inclusive). The annual rent is 350k for each flat; making N1.4 annually. But sincerely speaking, there is no year that you will get that N1.4m as a whole. Some tenants will not pay giving you stories, of which some are actually true. Infact, I have to engage the service of an agent (with 5% fee) to avoid all these head aches.

I would sell the house next year and put the money on a dividend paying stock from which I can benefit either from capital appreciation or dividend. However, this is not to say that building for tenancy is not good at all. There are some instances where you build on nice location where rents is juicy and high.

Currently building a house for someone and personally as a supervisor on this site, I don't envisage this things you mention. I have told the client not to cut cost on somethings and very standardized durable material/architecture was put to thought in the building(because I'm trying to avoid some of the things mentioned in real estate). We have about 5k+ litres of water (infact we pump water like once-twice in a week). Also a house keeper and a flat utility fee. Metering in ikeja has been quite challenging. The electrical connection was over standard with original breakers and Generator port . People say we have done too much even NEPA officials . We had a future outlook to ensure the facility will have a future minimal maintenance cost.
Maybe time will reveal more challenges and it will be an opportunity to learn. I'm looking forward to the challenges for a next building I will begin soonest.
For the tenants that will want to owe , we also have consideration that will be revealed. An estate management company does that

kolaish:
The only thing you may likely gain in having a tenement building is tying your money down for a long time and selling the building twice the money you spent building it after about 10 years. Beside that, be prepared to start receiving news of the well/borehole is not working, overhead tank is leaking, roof is leaking, tenants fighting each other, shower or toilet seat is no longer good, the gate needs to be repaired, thieves came into the house and they want you to raise the fence etc, all of these from the meagre amounts they are paying you.

Let me use one of the house I built for tenants as an example. The house is a block of 4 units of 3 bedroom flat. it was built in Ibadan in 2014 for around N32m (land inclusive). The annual rent is 350k for each flat; making N1.4 annually. But sincerely speaking, there is no year that you will get that N1.4m as a whole. Some tenants will not pay giving you stories, of which some are actually true. Infact, I have to engage the service of an agent (with 5% fee) to avoid all these head aches.

I would sell the house next year and put the money on a dividend paying stock from which I can benefit either from capital appreciation or dividend. However, this is not to say that building for tenancy is not good at all. There are some instances where you build on nice location where rents is juicy and high.

It is a good way to store value. It is the only Investment for most people. Lest than 10 million Nigerians are into equity Investments which is less than 5% of our population.

handsomebolanle:

Currently building a house for someone and personally as a supervisor on this site, I don't envisage this things you mention. I have told the client not to cut cost on somethings and very standardized rugged material/architecture was put to thought in the building(because I'm trying to avoid some of the things mentioned in real estate). We have about 5k+ litres of water (infact we pump water like once-twice in a week). Also a house keeper and a flat utility fee. Metering in ikeja has been quite challenging. The electrical connection was over standard with original breakers and Generator port . People say we have done too much even NEPA officials . We had a future outlook to ensure the facility will have a future minimal maintenance cost.
Maybe time will reveal more challenges and it will be an opportunity to learn. I'm looking forward to the challenges for a next building I will begin soonest.

kolaish post=105191883:
The only thing you may likely gain in having a tenement building is tying your money down for a long time and selling the building twice the money you spent building it after about 10 years. Beside that, be prepared to start receiving news of the well/borehole is not working, overhead tank is leaking, roof is leaking, tenants fighting each other, shower or toilet seat is no longer good, the gate needs to be repaired, thieves came into the house and they want you to raise the fence etc, all of these from the meagre amounts they are paying you.

Let me use one of the house I built for tenants as an example. The house is a block of 4 units of 3 bedroom flat. it was built in Ibadan in 2014 for around N32m (land inclusive). The annual rent is 350k for each flat; making N1.4 annually. But sincerely speaking, there is no year that you will get that N1.4m as a whole. Some tenants will not pay giving you stories, of which some are actually true. Infact, I have to engage the service of an agent (with 5% fee) to avoid all these head aches.

I would sell the house next year and put the money on a dividend paying stock from which I can benefit either from capital appreciation or dividend. However, this is not to say that building for tenancy is not good at all. There are some instances where you build on nice location where rents is juicy and high.

For the tenants that will want to owe , we also have consideration that will be revealed. An estate management company does that

Thank you all for contributing your experiences. For me I think I have gone so far in the project, and made so many mistakes that I can't stop now. I hope all your views will guide me.

BWT, I wonder how many remember the NSE crush after 2008 following the global economic crisis. Unfortunately the crash followed a boom in the NSE during which many novices jumped into the market on hearing record gains by investors. I recall stories of people who lost their houses after selling them to invest in the market. Many vowed never to come back to the market again. I just thought we should recall this history of the market in our discussions here.

Raider76:


Thank you all for contributing your experiences. For me I think I have gone so far in the project, and made so many mistakes that I can't stop now. I hope all your views will guide me.

BWT, I wonder how many remember the NSE crush after 2008 following the global economic crisis. Unfortunately the crash followed a boom in the NSE during which many novices jumped into the market on hearing record gains by investors. I recall stories of people who lost their houses after selling them to invest in the market. Many vowed never to come back to the market again. I just thought we should recall this history of the market in our discussions here.

Crazy to buy speculative stocks, private placements and Initial public offers with funds from the proceeds of a property, if you don't have the mental ability to analyze and value a business.

Raider76:


Thank you all for contributing your experiences. For me I think[b] I have gone so far in the project[/b], and made so many mistakes that I can't stop now. I hope all your views will guide me.

BWT, I wonder how many remember the NSE crush after 2008 following the global economic crisis. Unfortunately the crash followed a boom in the NSE during which many novices jumped into the market on hearing record gains by investors. I recall stories of people who lost their houses after selling them to invest in the market. Many vowed never to come back to the market again. I just thought we should recall this history of the market in our discussions here.

Please go ahead and finish your project. It is never a mistake building for tenancy and of course diversifying your investment. It is not good to put all your basket in one egg or is it egg in one basket. We are only speaking from experience, you need to have the experience too in order to draw your conclusion.

The NSE crash of 2008 was largely expected then because the market has gone well above the peak. Mind you, the market crash did not stop banks from paying dividend, nor did the banking stock or any other stock go under because of market crash. For now, I don't expect any market crash, the worst that can happen is price depreciation, which would even afford me the opportunity to buy more.

I have been busy for sometime now, but 2 months ago, I just branch to read comments and come across OGG's assertion on veritas capital. I bought 12 million units at 20k/share (N2.4m). I bought simply because I have nothing to loose as the stock cannot go down below 20k. Alas, I sold just a month after at 25k (N3m). This is just an example of the advantages of NSE. Sometimes you are fortunate but then, if you are not fortunate, you will not loose but only turn the investment to a long time, so far you did not sell at a loss.

Good luck inyour project. It is worth the while.

kolaish:
The only thing you may likely gain in having a tenement building is tying your money down for a long time and selling the building twice the money you spent building it after about 10 years. Beside that, be prepared to start receiving news of the well/borehole is not working, overhead tank is leaking, roof is leaking, tenants fighting each other, shower or toilet seat is no longer good, the gate needs to be repaired, thieves came into the house and they want you to raise the fence etc, all of these from the meagre amounts they are paying you.

Let me use one of the house I built for tenants as an example. The house is a block of 4 units of 3 bedroom flat. it was built in Ibadan in 2014 for around N32m (land inclusive). The annual rent is 350k for each flat; making N1.4 annually. But sincerely speaking, there is no year that you will get that N1.4m as a whole. Some tenants will not pay giving you stories, of which some are actually true. Infact, I have to engage the service of an agent (with 5% fee) to avoid all these head aches.

I would sell the house next year and put the money on a dividend paying stock from which I can benefit either from capital appreciation or dividend. However, this is not to say that building for tenancy is not good at all. There are some instances where you build on nice location where rents is juicy and high.

I share your narratives complete.

Investing in real estate by building house(s) for tenants is pretty much a bad idea.

No matter how you spend to ensure minimal maintenance, some tenants are naturally carefree about your house. In fact, they see you as some sort of elite who doesn't deserve anything else. The moment they become your tenant, you're their enemy of some kind. They misuse everything in your house as a punishment to you and jump to the next house when they are done.

Okay, let's say that part goes fine, you'd still have to deal with getting rents when due and the gap between a vacant apartment and a rented one. Plus inevitable maintenance, complaints by fellow tenants, etc. Zero peace of mind.

Still, Pa Emma is right. Almost everyone else is into building houses for rent. That's the only investment they know and trust. The part that actually benefits, they don't trust. Like buying of estate lands or lands in fast developing areas and selling some years down the line.

I see some folks build exotic houses in remote places for rent, I pity them. Only if they knew about dividend investment or even Money Market securities.

IYGEAL:
Investing in real estate by building house(s) for tenants is pretty much a bad idea.

[/b]I see some folks build exotic houses in remote places for rent, I pity them. Only if they knew about dividend investment or even Money Market securities.[b]

And some buy luxury in tenants house.

emmanuelewumi:


What is heavy? House rent should be like 600k. 250k units of Zenith shares should be able to do that na, 1 million units of United Capital shares will pay the school fees. I guy testified on another platform about 2 hours ago on how he has held on to United Capital shares from the days of 90k and he kept on buying the shares each time the price fell


To do this you need to have a target, immediately you start working or earning income.

Eg 5 years after I start working, my dividend should should be equivalent to 10% of my annual salary, 10 years when I start working my passive income should be equivalent to 50% of my salary.

To achieve this, I recommend Naira cost averaging , dividend reinvestment and a long term focus on wonderful businesses listed on the exchange These will make it easier and faster to achieve the goal.

I won't call out some people on this platform whose dividends and other passive income are more than their salaries. It involves having a plan , discipline and strategy towards achieving their goals

Thank you Sir Emma for the elaborate reply, we learn everyday


I am building my portfolios gradually

Mehn!!!! 600k is verrrry heavy for my present level, I live in an apartment less than 25% of the amount.

guys is the SFS REIT stock worth picking up now ..or i should wait till january

goody234:
guys is the SFS REIT stock worth picking up now ..or i should wait till january

Why are you buying? Is it for capital appreciation or income.

Income increased by just 60% in the last 10 years, which is not good enough

Meaning an investor who got a dividend of 100k in 2011 got just 160k in 2021

emmanuelewumi:



Why are you buying? Is it for capital appreciation or income.

Income increased by just 60% in the last 10 years, which is not good enough

Meaning an investor who got a dividend of 100k in 2011 got just 160k in 2021

What in your opinion is the prospects for UPDCREIT, especially now that the fund management has been taken over by stanbic assets managers. Is there any chance of appreciation in price and dividend in the nearest future?

A close friend of mine is currently bleeding, he emptied his retirement war chest of about #200 million in a hotel at port harcourt about 4 years ago....

The hotel generates a paltry #4million naira monthly of which expenses gulp 96% of revenue....

The hotel has been a source of employment for his son that recently came back from Europe for his masters and also his close kinsmen......

My friend frowns at the idea of running the hotel " Ndokwa" style as he is a devout Christian.... The hotel is out of bounds to his daughters and all female family folks to avoid corruption in his own words.....

My friend also believes in never selling property, he has lands he bought for 400k back then In Lagos that now goes for #30million a plot......

My friend complains bitterly that if this investment had been the source of his daily bread he is finished as the hotel can't even generate enough to rebuild itself in 100 years......

What business model can be used to run this hotel to generate at least #10 million naira monthly as that represents the break even point for me


CAVEAT: I know this is the wrong thread , pls pardon my indulgence

Mpeace:
What in your opinion is the prospects for UPDCREIT, especially now that the fund management has been taken over by stanbic assets managers. Is there any chance of appreciation in price and dividend in the nearest future?

When dividends increase stock price will appreciate. Dividend increase will be determined by rent increase and development of more commercial real estate Investments.

maishai:
A close friend of mine is currently bleeding, he emptied his retirement war chest of about #200 million in a hotel at port harcourt about 4 years ago....

The hotel generates a paltry #4million naira monthly of which expenses gulp 96% of revenue....

The hotel has been a source of employment for his son that recently came back from Europe for his masters and also his close kinsmen......

My friend frowns at the idea of running the hotel " Ndokwa" style as he is a devout Christian.... The hotel is out of bounds to his daughters and all female family folks to avoid corruption in his own words.....

My friend also believes in never selling property, he has lands he bought for 400k back then In Lagos that now goes for #30million a plot......

My friend complains bitterly that if this investment had been the source of his daily bread he is finished as the hotel can't even generate enough to rebuild itself in 100 years......

What business model can be used to run this hotel to generate at least #10 million naira monthly as that represents the break even point for me


CAVEAT: I know this is the wrong thread , pls pardon my indulgence

Good luck to him.

You don't invest in a business you don't understand.

4 years ago FGN bond was paying 16%. That would have fetched him N32 million per annum or N16 million every 6 months

What happened to diversification. Invest N50 million in the hotel, N50 million in equities, N50 million in Fixed income eg FG bonds and Treasury Bills and equivalent of N50 million in Eurobond funds

The best time to learn about investment and business is while working .


Planning to invest or start a business after getting your retirement benefits will end in premium tears, you will lose money to scammers, spiritual fathers, Ponzi schemes, digital agricultural platforms, risky ventures and unsustainable high yield investment schemes

Imagine someone got a total severance package of about N40 million and had to ask his Pastor to pray over the sum and reveal the business he should invest in.

By the time he regained his sense after 18 months, he had sown seeds and given offering worth over N25 million into the kingdom's business.

Assuming he had been Investing before he was retired he would have known what to do with the money

He was lucky to have regained his sense. In some cases, he would sell his properties and give as special thanksgiving offering.

emmanuelewumi:
Imagine someone got a total severance package of about N40 million and had to ask his Pastor to pray over the sum and reveal the business he should invest in.

By the time he regained his sense after 18 months, he had sown seeds and given offering worth over N25 million into the kingdom's business.

Assuming he had been Investing before he was retired he would have known what to do with the money

Seunn11:
He was lucky to have regained his sense. In some cases, he would sell his properties and give as special thanksgiving offering.

lol

Bought more Lafarge Wapco shares today, what is the long term profitability prospect of the business

emmanuelewumi:
Bought more Lafarge Wapco shares today, what is the long term profitability prospect of the business

Lafarge is among the stocks I categorized as "Can Only Go Up Stock" alongside Presco and others. These stocks can give you 35% capital appreciation in the next 7 months. All one need to do is to exercise patience.

kolaish:
Lafarge is among the stocks I categorized as "Can Only Go Up Stock" alongside Presco and others. These stocks can give you 35% capital appreciation in the next 7 months. All one need to do is to exercise patience.

It is the cheapest in the sector, followed by Dangote cement then BUA cement

https://doclib.ngxgroup.com/Financial_NewsDocs/34025_GUINNESS_NIG_PLC%20_AUDITED_FINANCIAL_STATEMENT_FOR_2021.pdf

Good result from Guinness Nigeria PLC.

Dividend payment has also resumed.

MTN just landed... This is juicy

megawealth01:
MTN just landed... This is juicy

oya come pay your tithe

i go dm my akant numba to you

emmanuelewumi:




It is a good way to store value. It is the only Investment for most people. Lest than 10 million Nigerians are into equity Investments which is less than 5% of our population.

It might actually be less than 1 million considering that only 3 million Nigerians have 500k and above in their bank accounts irrespective of number of accounts based on bvn

kolaish:
Lafarge is among the stocks I categorized as "Can Only Go Up Stock" alongside Presco and others. These stocks can give you 35% capital appreciation in the next 7 months. All one need to do is to exercise patience.

Bought lafarge at 10.2 during lockdown. Since then price has gone up to 22 and refuses to move higher. The last time i bought lafarge was 59 sold at above 100 b4 it fell massive and remained so. I hope it gets to 100 again