judondasylva:
To me I would advice you to use half of that money and buy land in any of the major cities in the east since you reside there you can see land of 1.5m in Awka in one year time it will double the price. Then use the rest money to start a block industry in the land I bet you will thank me later. For the land In Awka if you need i can give you some contacts that can help you

Share contact please.
phundrumz001@gmail.comm

JayPeeOham:


Set awon General Overseer!

I don't know the meaning of this statement, but it sure sounds good to me

Go for the plot and get into building. This is a life time investment and don't forget to come bk here later to appreciate the ..landers��

OP build a commercial building like lockup shops that will both fetch you revenue, continue your hustle in a rented apartment.
If you build y house to live in you only spent about 7m to save 500k/year but a commercial building will pay for your house rent and will increase your investment. Later you can build your personal living house.

covid2019:
I am in a dilemma worsened by this covid19.

I am a graduate male of 29 residing in the East. I still squat with a friend, not because I don't have money for house rent. But principally because I have been unable to figure out what I want to do with my life, hence renting a house feels like a commitment that might get me stuck.

I always feel I might move anytime soon-- to either another state or abroad for masters or just practice of my profession. Note that I didn't study a STEM course.

All these while squatting, I have been saving via my proceeds from hustles.

In the wake of this COVID19, I checked all my banks and found out that money I have in my account has lost so much value given the dollar rate.

I have 11.4 million, inclusive of my working capital, plus a rickety car valued at 350k. Each time, I need just 3-5m as working capital.

It seems that trying to save more is false economy and might be counter productive.

NOW, I AM CONSIDERING buying a plot of land and erecting a small house even if it's 3 rooms. This, I think will serve as investment that will keep appreciating and also serve as residence.

Or just open a domiciliary account to hedge against naira fall and continue saving.
What do you think please?

If truely you worked and saved that much, I bet you do not the counsel of anyone to take your next leap.

deenee:




First and foremost he is not year at 29. Tony Elumelu became bank MD at 33 years. Late Uncle T of GTB founded GTB alongside Fola Adeola and Segun Agbaje in their early 20s.

Secondly, it is very ok for him to know how to hustle and make money yet without any knowledge and direction about investments and wealth creation.

Finally, i agree with you, building now is not the best optimal investment but will not support purchase of land though at this point.

These people you mentioned took on risks so they can enjoy later, they could as well play safe by investing all in building houses but didn't.

But they took on risks and now they are living off their wealth. Eg Tony Elumelu with his foundation helping other young ones. that's the point I am making.

Now is the time to buy landed properties, some people are cash strapped and will do anything to raise money by laying off thier assets. I don't support building of house tho it's a tie down of limited cash . But like I said he should use a bit to buy land and watch it grow , while he invests the rest in his hustle.

Don't just disagree with me, drop your points why you think otherwise.

covid2019:
I am in a dilemma worsened by this covid19.

I am a graduate male of 29 residing in the East. I still squat with a friend, not because I don't have money for house rent. But principally because I have been unable to figure out what I want to do with my life, hence renting a house feels like a commitment that might get me stuck.

I always feel I might move anytime soon-- to either another state or abroad for masters or just practice of my profession. Note that I didn't study a STEM course.

All these while squatting, I have been saving via my proceeds from hustles.

In the wake of this COVID19, I checked all my banks and found out that money I have in my account has lost so much value given the dollar rate.

I have 11.4 million, inclusive of my working capital, plus a rickety car valued at 350k. Each time, I need just 3-5m as working capital.

It seems that trying to save more is false economy and might be counter productive.

NOW, I AM CONSIDERING buying a plot of land and erecting a small house even if it's 3 rooms. This, I think will serve as investment that will keep appreciating and also serve as residence.

Or just open a domiciliary account to hedge against naira fall and continue saving.
What do you think please?

Firstly, you're a wise man thinking of the future. Kudos to you.

On your question there is a rule to money, "Never tamper with your working capital"
Unless you're re-investing it to yield better funds.
As you stated earlier your working capital is 5M. That leaves you with 6M and some fractions.

Now with this 6M you can only put it to good use if you have land in a commercial area already. Then you can build 3 or 4 units of self contain strictly for renting and not a place you or your family will live in.

I understand people from the East always build houses in the village first which is a good thing but it's one of the dumbest financial decisions ever. That's also dependent on the size of your funds . Reason is it becomes a liability instead of an asset. A liability because it dosent yield any money, you still use money for fixing and maintenance, you barely live in your village.

Now i don't know where you live but to get a near decent land in the east. You'd be looking at 5M above for new developing places and not core of town. If you buy this land it's a good investment and you're left with 1M. Which you can re-invest in your working capital and grow it. Not that the land if it's a good buy serves as hedge against inflation and loss of value for Naira.

Another thing you can do is to think of land banks. Buy cheaper lands and wait for some years for the value to go up then you resell. This way your money is safe against inflation. If you're thinking in this line you could get 3 plots in different places with the 6M and continue hustling. That's a long term investment and you'd be needing it.

Do not build a house you'd live in because of what people will say. Society dosent pay your bills. Be wise with your money. It's got wings.

Building a house especially for renting is the best investment you can make now,the money will continue flowing till the time of your children,I'm into Real Estate,you can contact me to get a plot of land at affordable price in any of our Estates at Awka,Enugu,Owerri etc, my number is 07035818210

valinno:
Building a house especially for renting is the best investment you can make now,the money will continue flowing till the time of your children,I'm into Real Estate,you can contact me to get a plot of land at affordable price in any of our Estates at Awka,Enugu,Owerri etc, my number is 07035818210

building a house under lockdown?

No one is building any house this month or next month

What should he do NOW , as in the next 4 weeks?

So u have N11m+ and u are still SQUATTING with someone? Kai na wa o!! I hope the person u are squatting with doesn't know how much u really have.
It's obvious u just posted this to seek validation cos deep downs inside of u, u know the right thing to do. If u really have N11m and u are still squatting with a rickety car of N350k u probably won't build a house even with N15m. Anyways its up to u what u decide. But just know that if all u posted is a true story then u are already paying evil for good to whoever u are squatting with.

The choice is yours

covid2019:









IT IS WAY CHEAPER TO STAY ALONE THAN STAY WITH THIS FRIEND.

Without sounding immodest, I am the one helping. And it's not upto 3 years I started staying there.


Maybe I should have said living not squatting, Its 4 rooms and parlour family house.

Only 2 siblings at home.
There is an empty room I use. In fact, I have access to everywhere.
.
.I spend money there too.

I foot many bills there. In fact the last small renovation cost me circa 200k. It's a family house . No rent is paid.
The friend is a post grad student and rarely stays at home.

.It would have been cheaper for me to stay alone. He drives my car. In fact, I taught him how to drive.

I buy gas, foodstuff etc.

Only if you knew how much I hate to beg, let alone letting people feed me

I started this hustle in school.

It took me 6 years.

I was able to save due to frugal nature. I don't show off, I don't brag. I even stated that my car is rickety valued at 350k.

If I was proud person, maybe I would have bought Camry to chase girls.

I suffered so much growing up. I left those details to reduce length of post.


You may not understand.

I feel like crying typing this.

No wahala. The money can earn you multiples or even make you a Billionaire if you invest it wisely and not gamble it (it is not only the about the gambling we all know, if one ventures into a business without requisite knowledge it is also gambling) because already I can sense you are modest and humble if this story is for real.

covid2019:


interesting analysis

What's per rule of 72 please?

I'm quoting: "The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself."

Let's say you're able to save 1million in treasury bills at 10%, it would take 7 years to become 2 million (72/10 is approximately 10).
Let's also say something costs 100k today and inflation is 14%; its cost will double in 5 years (72/14 is approximately 5).

Using the current treasury return and inflation, if you saved your money at 10%, but the cost of materials is increasing at 14%, the cost differential to you is about 4%. Which means that, at best, it will cost you more to wait to build your house, even for one year.

Investing in business is also an option, but you also have to account for the risk of the business vs. the sure thing of having a home.

Pls when you are working hard always try to spend on yourself and take good care of yourself. Make yourself happy. I checked this woman page now she was so hardworking with business chai. All for her to be found dead in her car this morning. Bro kindly get a build a house or rent a good apartment upgrade your car, think of a good and lucrative business after this pandemic and do. Remember YOLO peace out bro

Perfecttouchade:
Build and rent it out while u continue your hustle

gbam! You've Said it all

Richy4:


I am replying because u sound a bit sensible. If not, I would have ignored it just the way I ignored the other guy.

This is about money and investment. You don't just sort the advice of unqualified people to give you ideas on what to do just like that .

Any financial advisor u sort out online for free, check it carefully, he or she must have placed a disclaimer. Meaning that u can't sue him/her for misrepresentation because u did not request for information / advice directly from him..
he/she owe you no duty of care recognized by law, there's no reason for relying on the advice hence, They are not liable for whatever misfortune suffered as a result of relying on their advice. But freeloaders will never understand this..The Medical advise people takes online were at their own risk. go and figure it out..

I am surprised that most of you that types in good English nicely can't do/ make a proper comparisons.. u are equating financial matters with free software.. the other was even comparing an investment with studying English online.. hmm!!!

The Op came here to look for advice majorly from people who have had similar experiences. He wanted to hear stories of the choices people made when they were faced with something similar. Even paid financial advices doesn;t guarantee succcess. At times, one would just have to learn from experience than from someone who reads about it. Also, it would do no one harm if a professional offers free services every now and then. It is a noble cause and gets him the publicity ,hence, he can make money out of the publicity if he plays his card well. As they say, "all the best things in life are free".

Richy4:


I am replying because u sound a bit sensible. If not, I would have ignored it just the way I ignored the other guy.

This is about money and investment. You don't just sort the advice of unqualified people to give you ideas on what to do just like that .

Any financial advisor u sort out online for free, check it carefully, he or she must have placed a disclaimer. Meaning that u can't sue him/her for misrepresentation because u did not request for information / advice directly from him..
he/she owe you no duty of care recognized by law, there's no reason for relying on the advice hence, They are not liable for whatever misfortune suffered as a result of relying on their advice. But freeloaders will never understand this..The Medical advise people takes online were at their own risk. go and figure it out..

I am surprised that most of you that types in good English nicely can't do/ make a proper comparisons.. u are equating financial matters with free software.. the other was even comparing an investment with studying English online.. hmm!!!

So did the Op tell you that he would just take the advice here without a pinch of salt ?
So he would just take all or one of the pieces of advice and apply it just like hook line and sinker?

Seems your smattering of misrepresentation as seen in Wagon's cases in Tort is confusing you.

In practice, how many people have sued for getting bad financial advice?

Even if the op goes to a renowned economist or investment pundit and he advises him on say stocks to pick, will he sue if he loses his money or the stocks fall or even the coy goes under?


How many people have sued and succeeded even in clear cases of medical negligence?


The cases you cited are at best utopian, quixotic and unrealisable.
.You strike me like a stripling, still very wet behind the ears.

Quick one. If the house you currently live in was not built, would you have been there as a landlord or tenant?

adanny01:


Do you know how much it cost to build a house. A moderate 3 bedroom in an average city will cost you at least 10m.

If you had a business in the same amount, I assure you that it will earn you far more than your annual rent.

If you built the house with 10m, even if you are paid rent on it annually, a good business would have generated twice the amount.

Rent is not a waste, only stingy people think it is. Those who have good business dont think of building houses. Unless the building itself is a business as in real estate.

luluosas:
Quick one. If the house you currently live in was not built, would you have been there as a landlord or tenant?

If every man who has sperm must continue to give birth, we will be in trouble.

At his current status, he doesn't need to build. That money is not much.

He can take 7million and build a house and become broke thereafter or take 1 million and pay rent for 3 years and do business with 10million. With a good investment, he should have at least 20million in the 3 years. Only then will he withdraw 7 million for a house and still have 13million.

Its easy to make a million but its not easy to stay a millionaire.

A millionaire who has 11million with no responsibility will not build a house if he wants to stay a millionaire.

Call me on 08111979781

EndiaSami:

Share contact please.
phundrumz001@gmail.comm

pls I would advise you to build, if possible build your flat and a semi flat for rent. you won't regret it. the remaining money should be used for biz.

Congratulations. When you have the means of building your own house, please don't build. Take care

adanny01:


If every man who has sperm must continue to give birth, we will be in trouble.

At his current status, he doesn't need to build. That money is not much.

He can take 7million and build a house and become broke thereafter or take 1 million and pay rent for 3 years and do business with 10million. With a good investment, he should have at least 20million in the 3 years. Only then will he withdraw 7 million for a house and still have 13million.

Its easy to make a million but its not easy to stay a millionaire.

A millionaire who has 11million with no responsibility will not build a house if he wants to stay a millionaire.

luluosas:
Congratulations. When you have the means of building your own house, please don't build. Take care

And what if he loss all his money on the investment

luluosas:
Congratulations. When you have the means of building your own house, please don't build. Take care

When i have a steady large enough income or have 100% more than the cost of the building in savings, then I will build.

I know a man who refused to pay his children fees, lived in a slum, had not electricity when neighbors had. They were practically in the 60's when actually they are in the 21st century.

He made a choice because he was building a befitting retirement home. He finished building his house (beautiful i must confess), but his children are either drop outs or are socially backward. They are limited to getting pregnant and giving birth at home.

tot:


Interest rates unfortunately have crashed, last time I heard it was below 3%per annum. You can check with your bank.

A better alternative for now would be savings accounts, GT for example is about 4% pa.
4% on 1m = 40k per annum, divided by 12 is ~3k every month.

Hi Miss tot, are you saying Treasury bills interest rates has crashed from 10% to 4%?

If yes, then what other means is there to invest now, cause me I'm tired.

He is not thinking along that line. That's the problem of some people.

Ballotelle:

And what if he loss all his money on the investment

tot:


properties went into negative equity during the 2009 crisis

I will have to make research on this.

truthsayer009:


Hi Miss tot, are you saying Treasury bills interest rates has crashed from 10% to 4%?

If yes, then what other means is there to invest now, cause me I'm tired.

Was lower than 4% last time I know. You can get the current rates from the bank directly.

I don't know ooo.

Donald3d:
Build you would be glad you did 5 years from now.
Use about 6-7 Million to build, invest half of the rest.
You would have change to invest in a business
11 Million is a lot of money

Follow me on Twitter : www.twitter.com/NaijaSteveJobs

Try mushroom cultivation business
and thank me later.

pocohantas:


That guy is definitely an engineer or something related. I can bet my phone charger on it.

Definition of fixed asset:-assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.

That said any fixed asset that is not generating income to match its depreciation through wear and tear or its been obsolete is a liability.

Please we shouldn't allow class room accounting to confuse us. Even land that is said to appreciate in theory can be a liability in retrospect esp if one cannot easily convert the land to cash in time of urgent need.

Also there is a huge difference between been asset rich and cash rich.

Even from a asset perspective only-there are still wide gaps. E.g

Mr A who is worth 100m and lives in a owner occupied house of 25m with the rest of his networth in cash generating investments is way richer than Mr B who is worth 150m but lives in a 120m owner occupied residence with the rest of his networth in the saame class of investments.

The only way Mr B will termed to be richer than Mr A is if he can convert the residence to cash or a cash generating asset. Overall cash is king!


Otherwise we can all just walk into a bank and simply exchange our title documents for cash irrespective of where the property or fixed asset is located.

I think people need to look at his investment options from an economic profit point of view-comparing all the options against the opportunity cost of other investments

Finally, as i said in my earlier post 11m is and is not small money, depending on how we look at it.
And rushing to build a house or buy land will not be a top of mind investment option for me if i was in the poster's predicament.

truthsayer009:


Hi Miss tot, are you saying Treasury bills interest rates has crashed from 10% to 4%?

If yes, then what other means is there to invest now, cause me I'm tired.

FGN bond, investment grade commercial papers and a simple conversion to USD and fixing same is a good store of value.

Basically anything not giving you a return above inflation rate ain't worth it.

deenee:



Definition of fixed asset:-assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.

That said any fixed asset that is not generating income to match its depreciation through wear and tear or its been obsolete is a liability.

Please we shouldn't allow class room accounting to confuse us. Even land that is said to appreciate in theory can be a liability in retrospect esp if one cannot easily convert the land to cash in time of urgent need.

Also there is a huge difference between been asset rich and cash rich.

Even from a asset perspective only-there are still wide gaps. E.g

Mr A who is worth 100m and lives in a owner occupied house of 25m with the rest of his networth in cash generating investments is way richer than Mr B who is worth 150m but lives in a 120m owner occupied residence with the rest of his networth in the saame class of investments.

The only way Mr B will termed to be richer than Mr A is if he can convert the residence to cash or a cash generating asset. Overall cash is king!


Otherwise we can all just walk into a bank and simply exchange our title documents for cash irrespective of where the property or fixed asset is located.

I think people need to look at his investment options from an economic profit point of view-comparing all the options against the opportunity cost of other investments

Finally, as i said in my earlier post 11m is and is not small money, depending on how we look at it.
And rushing to build a house or buy land will not be a top of mind investment option for me if i was in the poster's predicament.

A LAND IS AN ASSET. I am not very interested in the economic perspective of his investment. That wasn’t the premise on which my comments were founded, neither did I contest it.

deenee:



FGN bond, investment grade commercial papers and a simple conversion to USD and fixing same is a good store of value.

Basically anything not giving you a return above inflation rate ain't worth it.

Good point. Considering inflation in Nigeria is currently >10%, it is fair to say that most investments are actually making negative returns.