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Would You Build A House With 40m Or Invest It In Bonds? - Investment - Nairaland

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Would You Build A House With 40m Or Invest It In Bonds? by Partnerbiz3: 4:15pm On Aug 26, 2017
I have been thinking about this.
Assuming you build a house worth 40m to generate 4 m per annum. Is it not better to invest it in bonds at 13% and above?
Note that 4m per annum is equivalent to 10% of 40m.



Again, why do people invest in bonds with lesser percentage instead of in Tbills with higher percentage?
Re: Would You Build A House With 40m Or Invest It In Bonds? by Fxmanager(m): 4:41pm On Aug 27, 2017
Partnerbiz3:
I have been thinking about this.
Assuming you build a house worth 40m to generate 4 m per annum. Is it not better to invest it in bonds at 13% and above?
Note that 4m per annum is equivalent to 10% of 40m.



Again, why do people invest in bonds with lesser percentage instead of in Tbills with higher percentage?


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Re: Would You Build A House With 40m Or Invest It In Bonds? by yemmit90: 9:15pm On Aug 27, 2017
Partnerbiz3:
I have been thinking about this.
Assuming you build a house worth 40m to generate 4 m per annum. Is it not better to invest it in bonds at 13% and above?
Note that 4m per annum is equivalent to 10% of 40m.



Again, why do people invest in bonds with lesser percentage instead of in Tbills with higher percentage?

It all depends on where you built the 40m house. A 40m worth of building today at very fast developing area could cost 200m naira in few years. On the other hand, the value of the same 40m house could deminished if the area is not that developed.

As for the bond and TB, The difference is long and short time investment. unlike bond, you can invest in TB for a certain period of time as low as 91 days.

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Re: Would You Build A House With 40m Or Invest It In Bonds? by Nobody: 9:32pm On Aug 27, 2017
Heed to Solomon's wisdom.

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