afrodoc2:


The guy is memorizing the list of people he will deal with once he gets in power.

🤣🤣🤣🤣🤣

Ibime:


Catheter will be to treat a physical ailment and not his mental malady

No doubt he will still have his primary residence, maybe one in VGC and one in Warri

What a man with no future income prospects should do at this stage is sell those houses, downgrade to Lekki and use the equity to buy some properties that will give him cashflow

Oruma is not the only one suffering. Babayaro was earning £20k per week at Chelsea and £40k at Newcastle. I reckon he cleared £6m after tax over the course of his football career. Babayaro filed for bankruptcy about a decade ago and now just lives in his primary residence which was worth £300k some years back. I wonder how that nigga is faring going bankrupt with no future prospect of income. Babayaro also blew his money on investments that his brother Emmanuel (Under 17 goalkeeper) convinced him to invest in. Emmanuel is probably richer that Celestine now despite not building a professional career after that Under17 world cup.

Making money you are expected to live on for the rest of your life within 10yrs and by age 35yrs is the ultimate setup

Many guys of our age that had regular 9 to 5 jobs are living a more stable life than some of those athletes friend we grew up together

There was one guy in our area he played local leagues went to African country, then some Asian league

He built his house a mansion by the time we were just entering workforce. By the time we were mid 30s he is no longer playing that's the time guys of our age are now catching up with him

Right now he is on the downward trend while those 9 to 5pm are trending upwards.

The mansion now is looking neglected and no money to keep the beauty

Cashflow is important in life. Way more important than getting a one time windfall

raumdeuter:


Making money you are expected to live on for the rest of your life within 10yrs and by age 35yrs is the ultimate setup

Many guys of our age that had regular 9 to 5 jobs are living a more stable life than some of those athletes friend we grew up together

There was one guy in our area he played local leagues went to African country, then some Asian league

He built his house a mansion by the time we were just entering workforce. By the time we were mid 30s he is no longer playing that's the time guys of our age are now catching up with him

Right now he is on the downward trend while those 9 to 5pm are trending upwards.

The mansion now is looking neglected and no money to keep the beauty

Cashflow is important in life. Way more important than getting a one time windfall

Wes Brown is the latest, despite earning £50k per week. That's £1.25m per year after tax and bro probably cleared £10m after tax in his career. £5,m in properties from that will be yielding him £25k per month now to avoid stories that touch

raumdeuter:


Making money you are expected to live on for the rest of your life within 10yrs and by age 35yrs is the ultimate setup

Many guys of our age that had regular 9 to 5 jobs are living a more stable life than some of those athletes friend we grew up together

There was one guy in our area he played local leagues went to African country, then some Asian league

He built his house a mansion by the time we were just entering workforce. By the time we were mid 30s he is no longer playing that's the time guys of our age are now catching up with him

Right now he is on the downward trend while those 9 to 5pm are trending upwards.

The mansion now is looking neglected and no money to keep the beauty

Cashflow is important in life. Way more important than getting a one time windfall

Yield with repayment with an eye on retirement is the way to go. I am working toward 55 myself which is 15 years away, mostly in pension but when interest rates calm down in the next 3 to 4 years, I will do a property run to bolster it. What percentage yield are you guys seeing there?

raumdeuter:


I disagree. Those who worked as employees are owed pension. Those who are contractors are not owed anything after retirement

Should we gather every athlete musician who has ever represented Nigeria since independence and be paying them for life

My own position on this is that it won’t be a bad idea if we take care of these guys when they need genuine help considering how they’ve brought smile to the fave of millions of people .

We have ex-governors and presidents who embezzled money while in office and still arrange life pension for themselves after leaving office . Some of those people are greedy bastardds who foisted misery on the people they governed . If we can be paying them , their domestic staff , etc years after leaving office, then I won’t mind the government lending helping hand to heroes like Oruma

Ibime:



Yield with repayment with an eye on retirement is the way to go. I am working toward 55 myself which is 15 years away, mostly in pension but when interest rates calm down in the next 3 to 4 years, I will do a property run to bolster it. What percentage yield are you guys seeing there?

Different strategies

I do different mixes. Airbnb which yield higher but have dependencies on the occupancy rates. Long term rentals which yield less but are steadier, older properties which are cheaper to acquire but require more maintenance they usually yield more but have more maintenance issues, new builds with very little issues but you barely make anything on them in year 1 to 3.

So it's a mix. Let me give some numbers. After mortgages and payments I get like 12% before factoring in the Airbnb which can be zero on a bad month and 5100 on full occupancy for the month

Everything extra after paying the mortgage I plough back into the principal. My goal is to knock down as much of the principal before retiring

If I was doing full airbnb I could have made more but I'm using the long term rentals to hedge the months short term rentals airbnb don't do well

I don't have a property manager I do most of the management myself. I have a crew of Hispanic boys that I call from time to time for handiwork and fixes needed

I am thinking to get a realtor license in the future too cos the 3% realtors dey collect adds up. On a $1m purchase that's 30k. So with my license I can effectively be buying at 97% even if I don't get any friend or customer to use my services. For every purchase buyers agent get 3% sellers agent get 3%

raumdeuter:

Different strategies

I do different mixes. Airbnb which yield higher but have dependencies on the occupancy rates. Long term rentals which yield less but are steadier, older properties which are cheaper to acquire but require more maintenance they usually yield more but have more maintenance issues, new builds with very little issues but you barely make anything on them in year 1 to 3.

So it's a mix. Let me give some numbers. Mortgages plus HoA say 13k per month, rents 15800 per month before factoring in the Airbnb which can be zero on a bad month and 5100 on full occupancy for the month

Everything extra after paying the mortgage I plough back into the principal. My goal is to knock down as much of the principal before retiring

If I was doing full airbnb I could have made more but I'm using the long term rentals to hedge the months short term rentals airbnb don't do well

I don't have a property manager I do most of the management myself. I have a crew of Hispanic boys that I call from time to time for handiwork and fixes needed

I am thinking to get a realtor license in the future too cos the 3% realtors dey collect adds up. On a $1m purchase that's 30k. So with my license I can effectively be buying at 97% even if I don't get any friend or customer to use my services. For every purchase buyers agent get 3% sellers agent get 3%

Nice strategy, what about taxes? Income/Profit from Rental will be taxed naa, especially if you are already in the higher tax bracket...

Ibime:



When you earn so much money in a short career, you only have one job and that is to turn it into fixed income via property. Too many of these athletes try to reinvent the wheel and go broke

For property, what are your main considerations when investing, yield or capital appreciation?

Chief, property is not fool proof ooo; lots of people lost their shirts in the last crash, and in some country these pproperties have not recovered....

Olowunl01:

Nice strategy, what about taxes? Income/Profit from Rental will be taxed naa, especially if you are already in the higher tax bracket...

You get some tax deductions especially on mortgage interest.
The property taxes is escrowed into the mortgage payment. Some people decide against it and pay their taxes at year end.
The income too will be taxed but you can make as much deduction including your repairs and amortization

I still get my hefty tax bill which gets me pissed when they try to increase the tax rate again

raumdeuter:


I still get my hefty tax bill which gets me passed when they try to increase the tax rate again

Not looking to further compound tax bill and dealing with declaring foreign income, Hence Naija seems attractive.

What's your take on AirBnB profitability in Naija? For me it would serve as income generating asset, and also base for my approx 6weeks stays in Naija.

raumdeuter:

So it's a mix. Let me give some numbers. After mortgages and payments I get like 12% before factoring in the Airbnb which can be zero on a bad month and 5100 on full occupancy for the month

12% yield looks like capitalism gone wild. Are you factoring in principal repayment in that?

Here anything above 6% is Gucci.

AirBnb is not something I would ever consider. Maybe look at your average AirBNb return over a full year to calculate the yield.

Olowunl01:

Chief, property is not fool proof ooo; lots of people lost their shirts in the last crash, and in some country these pproperties have not recovered....

Typically if your aim is yield rather than capital appreciation, you should not lose your shirt in a property crash because the cheapest properties offer the best yield, and the cheapest properties don't really crash because they are what the common man can afford to buy and within range of even those earning slightly above minimum wage as a purchase option. The ones that crash significantly are all those highbrow areas. Those usually return negative yields anyway

Olowunl01:

Not looking to further compound tax bill and dealing with declaring foreign income, Hence Naija seems attractive.

What's your take on AirBnB profitability in Naija? For me it would serve as income generating asset, and also base for my approx 6weeks stays in Naija.

Give you acquisition cost and expected returns in Naija

I'm not too familiar with the Naija market

The volatility of Naira is another thing. Are you planning to bring the Naija airbnb profit abroad? Before your profit gets halfed when Naira depreciate

Ibime:


12% yield looks like capitalism gone wild. Are you factoring in principal repayment in that?

Here anything above 6% is Gucci.

AirBnb is not something I would ever consider. Maybe look at your average AirBNb return over a full year to calculate the yield.

8 to 10% is fairly common. I got some of my properties during peak of covid when prices were down

Airbnb is a crazy market. So what I do is this. My setting on airbnb I put it that I only look for 30days minimum stay.
In 2021, I got a guy that was building his house already sold his old house and thought he would be staying for 3months he ended up staying for 14months because of supply chain issue to complete his new house. Though I didn't give him the normal per night rate rather a discounted rate for staying long term

Nightly airbnb can be wild for someone who has a days job cos you need a standby cleaning crew. I had a Brazilian lady for that. Plus on airbnb your guests can be stupid. Demand for silly things give you bad reviews

Ibime:


Typically if your aim is yield rather than capital appreciation, you should not lose your shirt in a property crash because the cheapest properties offer the best yield, and the cheapest properties don't really crash because they are what the common man can afford to buy and within range of even those earning slightly above minimum wage as a purchase option. The ones that crash significantly are all those highbrow areas. Those usually return negative yields anyway

Chief - crash affects both cheap and expensive; took me some years to exits spanish purchase, and only just exiting my Bulgarian flats at a loss 20% .

Also cheap properties does tends towards lower income tenants, and these can be difficult to manage which would affect yield, especially when combined with Work & Family life.

Oga Dayo - How do you manage the property portfolio for yield? Purchase, Tenants & Tenant issues?

raumdeuter:


Give you acquisition cost and expected returns in Naija

I'm not too familiar with the Naija market

The volatility of Naira is another thing. Are you planning to bring the Naija airbnb profit abroad? Before your profit gets halfed when Naira depreciate

Ikate 2bedroom flat e.g 70 Million... If expected rental is avg 10days per month e.g. 500k per month.. so 6Million per annum, purchase to be funded using non leverage funds so I would put cost at zero.

Right now - I believe income will remain in Naija...

Olowunl01:


Ikate 2bedroom flat e.g 70 Million... If expected rental is avg 10days per month e.g. 500k per month.. so 6Million per annum, purchase to be funded using non leverage funds so I would put cost at zero.

Right now - I believe income will remain in Naija...

That's 8.5% returns which is good. With no taxes.

If you are not sending the money abroad then that's even better

Olowunl01:


Chief - crash affects both cheap and expensive; took me some years to exits spanish purchase, and only just exiting my Bulgarian flats at a loss 20% .

Also cheap properties does tends towards lower income tenants, and these can be difficult to manage which would affect yield, especially when combined with Work & Family life.

Oga Dayo - How do you manage the property portfolio for yield? Purchase, Tenants & Tenant issues?

lol. Those Spanish properties lose a lot and are pumped by British tourists and they almost always lose value. Bulgaria is also an undeveloped market. As of 25 years ago when I was in Bulgaria, they were almost as poor as Nigerians. I was buying a bottle of wine for £1 there. That means what the lower income Bulgarian can afford is like £20k. So if you buy £50k, you are far from the bottom.

By low yield l am talking buying like £110k flat in the middle of Birmingham or Manchester. The low income Birmingham guy can always afford that. Besides when your focus is on yield and your rental income is achieving the desired percentage you won't care about losing equity that natural YoY inflation will recover for you.

raumdeuter:


That's 8.5% returns which is good. With no taxes.

If you are not sending the money abroad then that's even better

That return should be calculated in dollar terms, it would give a completely different picture. The only Nigerian property investments yielding non negative returns in dollar terms should be on the island areas in Lagos like Ikoyi, Phase 1, VGC, Banana

raumdeuter:


That's 8.5% returns which is good. With no taxes.

If you are not sending the money abroad then that's even better

Well I could be over estimating AirBnB occupancy, however my fall back option would be renting out the place long term which the yield less than half that of AirBnB.

Ibime:


12% yield looks like capitalism gone wild. Are you factoring in principal repayment in that?

Here anything above 6% is Gucci.

AirBnb is not something I would ever consider. Maybe look at your average AirBNb return over a full year to calculate the yield.

12% yield is mad. Usually between 3% to 5% here from what I have seen.

It is best to mix n match. Apartments and cheaper buildings like 300k-500k for yield, while those in and around 1m for capital growth. That way you have the best of both worlds as there isn’t really a right or wrong way.

The location of your cheap property investment for yield does not matter so much but if you are buying a big property for capital growth the location and other factors come in. Those ones bought for capital growth are the ones that can lead to financial distress if the market crashes, but if you are in for the long haul the market will always rebound.

I like the investment discussions. For folks living in Europe with properties how did you finance these acquisitions?

Straight cash or payment plan?

So there are still child marriages in America! Even as early as 10? Wow!

Olowunl01:


Ikate 2bedroom flat e.g 70 Million... If expected rental is avg 10days per month e.g. 500k per month.. so 6Million per annum, purchase to be funded using non leverage funds so I would put cost at zero.

Right now - I believe income will remain in Naija...

So you can pay 70m for 2 bedroom flat in Ikate?

You can easily get 4 bedroom for 50m in Lekki/Ajah axis

🤦

Realmrsean:
🤦

Trial and error government 🤦‍♂️

Since when the old notes were re-circulated, I'm yet to set my eyes on the new notes.


So, all the billions they claim were used to print the new notes will vanish just like that?

akwesenana:
Since when the old notes were re-circulated, I'm yet to set my eyes on the new notes.


So, all the billions they claim were used to print the new notes will vanish just like that?

The new notes are now coming out. Apparently, people were hiding them in their homes.

BlueRayDick:


Trial and error government 🤦‍♂️

Abeg they should ensure that our next CBN governor has an Economics degree so that people can drink water and drop cup.

akwesenana:
Since when the old notes were re-circulated, I'm yet to set my eyes on the new notes.


So, all the billions they claim were used to print the new notes will vanish just like that?

Them say you people they hoard am they spend old notes🤣🤣🤣

Itsrm:


The new notes are now coming out. Apparently, people were hiding them in their homes.

You believe that nonsense
How much people get for account to be keeping new notes

iamoyindamola:

You believe that nonsense
How much people get for account to be keeping new notes

Unlike before, I'm starting to see it. I have 15, 1k new notes with me at the moment. The notes are also not crisp so it's not ike the CBN just released it.