I have a great interest in real estate as well as in the stock market. However I have decided to seek for sincere counsels from fellow Nairalanders in order to guide me in my investments.

Thank you for dropping your own advice.

Why not eat your cake and have it? I beleive mortgages are the next big money earner in Nigeria. How many Nigerians do you think, would jump at the chance of owning their own homes via a mortgage?

This market is an untapped goldmine!!!!!!!

Back to your question, why not invest in real estate via the Stock Exchange. Right now there is only one listed mortgage firm on the NSE, namely, Union Homes. Effectively, if you buy shares in Union Homes you are killing two birds with a stone, investing in real estate and shares in one fell swoop.

LBIC recently did a PP, I suspect their shares will head for the moon whenever they are listed. A few other mortgage firms are rumoured to be close to a PP or full listing on the NSE.

Thanks for your reply.
More responses please.

Father ab,

We're in the same boat. But what I'm doing right now is to invest heavily in the stock market, since it gives the highest return in Nigeria at the moment. However, whenever I make a good harvest, I head straight to the real estate market.

My Formula is: Short-term = Stock Market, Long-term = Real estate.

Try this formula and you'll reap from both worlds!

Please tell ♏e more about stock pls

real estate make sense pass shares ... simple truth

It all depends on you. The risk attached to real estate is high but with high return.

whichever you're better at or you understand more is better



& please don't listen to people that have never bought a bag of cement or don't know what a stockbroker is, a lot of them would pour into this thread soon, giving you advice, and even proposing "juicier investments" for you

It depends...are you investing in real estate to profit from cash flow, risk mitigation and price appreciation? If so, the returns can be greater than stock market. If you're only thinking price appreciation, then i will invest in the stock market.

I have not invest in any of dis,so i dont have any idea...So let me read comments to acquire more knowledqe on dis

father ab: I have a great interest in real estate as well as in the stock market. However I have decided to seek for sincere counsels from fellow Nairalanders in order to guide me in my investments.

Thank you for dropping your own advice.

It depends on what you mean by investing in Real Estate. Are you going to invest in Real Estate per se, or buy land and build, rent, sell properties, etc? It has its risk and rewards. Now stocks on the contrary do not have as much management headaches to contend with. It's up to you the investor whether you want to own "bricks and mortar" or paper (as in stocks). Whichever tickles your fancy? They both carry risks, and both may from time to time give you sleepless nights.

What we have in Nigeria is not a stock market but Scam market.

When my friends were buying properties in 2008 I went to stock worth about 15M, as am talking to you some of them are gone just like that,to cut long story short the stock are worth about 200k now, and the house my friend bought same year with same amount is worth 50M.

My brother I will never invest in anything invincible again please go for your real estate

Crownvilla: Why not eat your cake and have it? I beleive mortgages are the next big money earner in Nigeria. How many Nigerians do you think, would jump at the chance of owning their own homes via a mortgage?

This market is an untapped goldmine!!!!!!!

Back to your question, why not invest in real estate via the Stock Exchange. Right now there is only one listed mortgage firm on the NSE, namely, Union Homes. Effectively, if you buy shares in Union Homes you are killing two birds with a stone, investing in real estate and shares in one fell swoop.

LBIC recently did a PP, I suspect their shares will head for the moon whenever they are listed. A few other mortgage firms are rumoured to be close to a PP or full listing on the NSE.

Very wrong information and advise on all counts.

First, union homes is not the only listed mortgage bank. There are many. Aso savings is there, Abbey buildings society is there. Etc

Second, not only that most of the listed mortgage firms are unprofitable, they are having dwindling capital base hence the directive of CBN that all mortgage banks should recapitalized to between N2.5b and N5billion latest by April 2013

Most if not all listed mortgage banks are trading at par of 50 kobo each so no capital appreciation.

What you should have advised him on is may be to invest in listed Real Estate Investment Trust Scheme (REITS). You may read up more on that.

Real estate and stocks are two popular investment vehicles. It is always important to have a balanced portfolio, therefore it is worthwhile to invest in both. However, if you are trying to decide between the two, you might find that real estate provides the better returns more consistently.

I believe that real estate serves as a better investment than the stock market for a number of reasons. Most importantly, real estate generally is not as volatile as the stock market. Stocks can plummet for any reason at any time, leaving investors at the mercy of things beyond their control. Global events, such as terrorist attacks, natural disasters, corporate bankruptcy, and high-profile white-collar crimes, can all negatively affect the value of stocks. The reality is that many things can determine the daily value of stocks, far beyond the fundamentals of a company’s financials.
Here are the top 3 reasons I believe real estate is a better investment than stocks:

1.) Real Estate is a Tangible Asset. It is a physical investment that you can see and touch. Shares in a company are nothing more than a piece of paper giving you an interest in the underlying company. Although a company’s shares can be valuable, because real estate is tangible it generally provides more value because people can use it in everyday life, and more importantly it is essential!
People must have homes to live in and businesses must have places to operate from. You can live in a house or an apartment, but you cannot live in a share of stock from Google. You can operate a business in a retail shopping center or an office building, but you cannot open and operate your business just because you own stock in Wal-Mart (unless of course you bought the stock way back when and your capital has increased 20X!).

2.) Real Estate allows for Leverage. Now leverage can be a double-edged sword, and over-leveraging a property can cause your asset to become a “money pit” faster than you can say “Bubble”. The over-leveraging of properties coupled with greed is the primary reason why we are experiencing the effects of the recent real estate market crash.

However, responsible leveraging can allow an investor to put up 20-30% of the purchase price of a property and borrow the remaining 70-80% of the purchase price. This leverage will generally allow the investor to realize gains much higher than that of the stock market. For example if you haveN50 Million Naira to invest in real estate, you can generally leverage that into a N250 Million Naira property. So your N50 Million Naira will serve as a 20% down payment on a N250 Million Naira property and you will get a mortgage for the remaining N200 Million Naira.
If the property appreciates at 5% (N12.5 Million) over the course of a year, that is an unrealized gain of 25% on your invested capital of N50 Million Naira. In addition, if the property was generating a positive income, which is always advisable, then your returns would be greater.

Now just to be straight forward, this is the broad view of the investment. It doesn’t take into account closing costs, loan costs, illiquidity of the investment, etc. So there are more costs that would be associated with this investment that would take away from that 25% return and you would still have to sell or refinance the property to realize that 25% return, however, over the course of a few years with responsible leverage, real estate returns far outpace stock market returns.

Stocks can generally only be leverage at a 50% – 100% ratio if you are trading on margin. So if you have N50 Million Naira to invest, you can generally purchase N100 to N150 Million Naira -worth of stock.

Ok let’s use dollar calculation, assuming you purchased $200,000 worth of stock and it appreciated 5% ($10,000) over the course of a year that is an unrealized gain of only 10% on your invested capital of $100,000. And similar with the real estate investment you still have additional fees that will take away from this gain, primarily brokerage fees and interest on the borrowed capital in your margin account.

3.) Real Estate allows for more Control. When you invest in real estate, you generally have control in how that investment is to perform. You can implement strategies to operate the investment more efficiently in order to maximize returns. Unfortunately, with stocks you really don’t have any control in how the company operates in order to maximize your returns on your investment. At best you can submit suggestions to the board of directors, and maybe they will implement some of your suggestions….MAYBE!

Real Estate also provides other advantages for the risk averse, and in terms of how gains are realized and in terms of the overall volatility and manipulation of the markets, which I just don’t have enough time to delve into with great detail in this post, but we can always carry the conversation over into the comments below so please let me know your thoughts and comment below.

Invest in the stock market as prices go up. The other way round, it is better to keep your money in the bank.

[b]NO to SHARES in Nigerian and the UK! I have tried both, a complete waste of money and time.
I was working in Ijeshatedo, Ajah, Lagos in 1999, starting up a construction company with my old man, and our first project was an estate in Ijeshatedo owned by the famous Fuji Musician Manager Percy Olumokun. I felt Percy was insane to have ever bought a land there....and I also felt he was duped. I used to see all different types of snakes then, and it was always two or three huge snakes per day, and the bus stops was always empty. No buses or passengers....Ajah back then was like a stupid idea, and that is why today I believe in Eko Atlantic...As long as one buyer goes there, many more will follow....I remember as clear as ever then the Omo-onile telling us then that their land is getting costlier everyday, and that a plot within Ijesha-tedo is selling for 30k, and the one at the road side is selling for 35k. My old man bought two acres back then, fenced it over the year, and since I was the project manager, I can confirm with evidence that the entire cost of land and fencing was totally 848,950.00 Naira. He sold an acre out of it last year for 40 Million Naira. He still has 1 more acre. Compare that with any share and I will go and buy right away!
I have seen many people make a life changing property investment, and with the way Lagos and Ogun states are headed, it will be an upward spiral till the foreseeable future.
The few properties I purchased some years back during the time of Gbenga Daniel within Ogun State though felt like big mistakes back then, but right now with the sky-rocketing prices of lands and scarcity on daily basis, I regret not buying as much as 10 acres back then.
You just need to know the experts, and buy properties with vertical integration features, and your on your way (i.e. properties infront of an express, or one infront of a road that links with an express...such properties have many uses: can be used for shops, warehouses, and can be sold with ease....and many more benefits).....
With great professionals, you can make an investment in real estate that could change your life forever....but this is a long-term business....and not a get quick-rich venture like the ones Nigerians are obsessed about. So if you want MAGIC, real estate isnt the way.
[/b]

Real estate of course. Call 08093399270 for an experts advice

You just can't compare the appreciation rate of real estate to that of stocks. The difference is just too much.

Op
Since u re in 9ja go 4 real estate(visible investment), shares no get value again

Real Estate doesnt depreciate unlike like shares/stocks. The risk of losing a fortune is higher in buying of shares. Am into real estate.

For cheap plots/acres in Abeokuta,and ur property need in Lagos or Mowe,call lekmak properties 08026165288

Real estates re wayy better than shares. Real estates re gold mine especially here in Nigeria that rent are on the high side and re not checkmate.

All-in-all, I'll advise you to invest in real estate

HAH: What we have in Nigeria is not a stock market but Scam market.

When my friends were buying properties in 2008 I went to stock worth about 15M, as am talking to you some of them are gone just like that,to cut long story short the stock are worth about 200k now, and the house my friend bought same year with same amount is worth 50M.

My brother I will never invest in anything invincible again please go for your real estate

.... blunt truth!

Pls how do I claim my dividends. I have shares in Zenith bank and Oando since 2005, was receiving my dividends till 2008 and from then till this moment I have not receive any dividends or correspondents. How do I claim my dividend, I have relocated and have written to them to that effect last year but till date no response. I need advice on what to do to get my dividend from 2008.

heed101: It all depends on you. The risk attached to real estate is high but with high return.

do u kno wat ure sayin atall, wat s d risk attached to real estate , kindly enlighten me abeg cuse 4rm my books dats d safe way of investin, or u prefer shares which u dont kno wen it wil rise or fall, guy shares ve nt dealt wit u b4 , 4rm my own xperience i wil advise u to 4get shares now xcept u want to buy it n leave it 4 a long period of time if not its neva wort it atall

Real Estate of course

Jeez! It took this thread about 5yrs to make the nairaland frontpage if only am not mistaken, is it this hard to make the front page? Hmm smh