If he bought treasury bills 5m in 2008at 14 percent over 10 years that will have amounted to 18m by 2018 .....so tb don't grow money cos rate just slightly above inflation....suprisely those land was selling for 800k in 2007/2008 and is a layout near an old gra ...it hit 10m per plot in 2018 I taught that was the peak ...suprisely one was sold or 14m as the plots they finish the price they jump....it even affecting near by land like I bought one for 250k in 2009 and sold for 3m in 2006 , i also bought one for 1.45 and sold for 2m within 6 months

My observation ( personal) and from veteran land hawks ,their element of luck.they also have the master plan of areas and know when the new road routes, the also new Neigbour hood new old gra like ikoyi and lekki ,lekki and ajah ,like ikejia and magodo , like abuja town and gwarinpa etc , they strike at those new area and wait

odimbannamdi:


Going by your calculation, it will then take at least 17 years for the house owner to recoup his 55m investment under "ideal" circumstances.

By ideal circumstances, i mean:

- you rent it out at exactly 800k per annum
- It gets rented immediately you finish building
- there are no landlord-tenant squabbles
- there are little to no repairs done within this period.
- Government does not hike land-use charges or come with useless land-related charges

Unfortunately, this world is not ideal.

Personally, i do not fancy house rental as an investment. The period to recoup my investment will be too long. I doubt i will see 200% returns in my lifetime. I would prefer to build event centres and make my 50k every Saturday.

And you are sure of rental every Saturday?

igbizen:

And you are sure of rental every Saturday?

Very possible, we have events, parties, weddings, launching every Saturday.


I know an event center that hosts 3 services by 3 churches on a Sunday

igbizen:

And you are sure of rental every Saturday?

With a 30m investment in a choice area in Surulere, if everyone around is charging 200k on Saturday, and i charge even 100k, i am sure to get bookings almost every single day for a month upfront.

A friend of mine did his wedding in July and i helped him rent a hall at the traffic-infested Ojo road for 180k with so much begging. And bookings were filling very fast.

If that kinda area has such price dynamics, how much more Surulere.

Do the maths

[quote author=Sholapey post=82658966] Ibadan is cool and calm! [/quote

What of the returns on investment?

odimbannamdi:


With a 30m investment in a choice area in Surulere, if everyone around is charging 200k on Saturday, and i charge even 100k, i am sure to get bookings almost every single day for a month upfront.

A friend of mine did his wedding in July and i helped him rent a hall at the traffic-infested Ojo road for 180k with so much begging. And bookings were filling very fast.

If that kinda area has such price dynamics, how much more Surulere.

Do the maths

180k gross income what of expense

odimbannamdi:


Going by your calculation, it will then take at least 17 years for the house owner to recoup his 55m investment under "ideal" circumstances.

By ideal circumstances, i mean:

- you rent it out at exactly 800k per annum
- It gets rented immediately you finish building
- there are no landlord-tenant squabbles
- there are little to no repairs done within this period.
- Government does not hike land-use charges or come with useless land-related charges

Unfortunately, this world is not ideal.

Personally, i do not fancy house rental as an investment. The period to recoup my investment will be too long. I doubt i will see 200% returns in my lifetime. I would prefer to build event centres and make my 50k every Saturday.

People hardly let their houses to traders and businessmen, majority of them are bad tenants.

Despite the rise in this particular area from 800k to 14m in 11 years some area remain stuck cos they got to their peak and new money ain't following toward there....but at 14m it already very high and not advisable to buy for future gain ...infact a large parcel of land own by a billionaire is just near by (0.5 km ) with 300 plot if he sell price will crash the 14m (speculation)

Another method land hawks make money is by buying up farm land near a residential area ,then do plan and layout and divide into plots for middle income earners

ahiboilandgas:
180k gross income what of expense

Phcn, salaries of security and janitorial staff, local government level, fees to Lagos State government, diesel, buildings maintenance, Lagos State is mean on land use charges on small businesses like schools, hotels, event center. This is different from income tax for the owners of the business to be paid to Lagos State and corporate tax to be paid to federal government.

The business is good, but you there is difference between revenue and profits.

That is why most people who rush into transportation business and are not on ground to personally manage and understand the business, usually get their fingers burnt.

A man bought a farm for 83k in 1984 and was sold by his kid for 120m in 2014 ( real life ) Funny enough the original owner came to sign as witness on bycyle ,the buyer had contact in land ministry and has insider knowledge of the Eastern by pass road to be built any time in future...going forward the investor that bought for 120m redesign the plot to commercial by the road and residential behind ,pay up land charges and sold for 380m ....land/property is beyond just building to rent......property need wisdom ,connection,bribes etc

emmanuelewumi:



Phcn, salaries of security and janitorial staff, local government level, fees to Lagos State government, diesel, buildings maintenance, Lagos State is mean on land use charges on small businesses like schools, hotels, event center. This is different from income tax for the owners of the business to be paid to Lagos State and corporate tax to be paid to federal government.

The business is good, but you there is difference between revenue and profits.

That is why most people who rush into transportation business and are not on ground to personally manage and understand the business, usually get their fingers burnt.

true transport huge runing cost tyre ,service insurance premium,salary,parts ,depreciation etc endless cost ...i use almost 200k per month on each truck

Senior secondary class 1, i was told there is always a point where addition of factor of production doesn't equal improve production. The rate we make people believe that by 2050 houses will be 100b naira is false. When it keeps growing like it is now and nobody is buying prizes will come down. The art of selling is a profession, learn it. As it stands, learnt long ago here on property section that those houses we call over a 100m can be built with 40m or less. Now the area is the next point to look at and i quickly remind you of our former Apapa and also reminding us the newer city are emerging that will make banana island unattractive in few years. I said it earlier here that its wrong for a young man to start life thinking property is the future, its a stereotype that i also believed in. The wealth of the earth is not in the earth, reason the richest folks are not landlords. Duty calls, will finish this episode when am back by evening.

odimbannamdi:


With a 30m investment in a choice area in Surulere, if everyone around is charging 200k on Saturday, and i charge even 100k, i am sure to get bookings almost every single day for a month upfront.

A friend of mine did his wedding in July and i helped him rent a hall at the traffic-infested Ojo road for 180k with so much begging. And bookings were filling very fast.

If that kinda area has such price dynamics, how much more Surulere.

Do the maths

Agreed i am looking in this direction, however this is very cost intensive, also location is a major problem.

ahiboilandgas:
If he bought treasury bills 5m in 2008at 14 percent over 10 years that will have amounted to 18m by 2018 .....so tb don't grow money cos rate just slightly above inflation....suprisely those land was selling for 800k in 2007/2008 and is a layout near an old gra ...it hit 10m per plot in 2018 I taught that was the peak ...suprisely one was sold or 14m as the plots they finish the price they jump....it even affecting near by land like I bought one for 250k in 2009 and sold for 3m in 2006 , i also bought one for 1.45 and sold for 2m within 6 months

Living in a 2 bedroom duplex in Abuja for 5 years now. House was sold to landlord for 23 million Naira.

Rented for 800k annually.

House was put up for sale recently and @ 15 Million naira, buyers were requesting to buy and pay in installments. Landlord refused to sell.

This is practical example that property cannot always appreciate. It's mere speculation and elements of luck and opportunities

vacanci:


Living in a 2 bedroom duplex in Abuja for 5 years now. House was sold to landlord for 23 million Naira.

Rented for 800k annually.

House was put up for sale recently and @ 15 Million naira, buyers were requesting to buy and pay in installments. Landlord refused to sell.

This is practical example that property cannot always appreciate. It's mere speculation and elements of luck and opportunities

It is even worse in the western world, the cost of maintaining house in canada is not beans, u pay property tax, maintenance fees, insurance. the list is endless.

vacanci:


Living in a 2 bedroom duplex in Abuja for 5 years now. House was sold to landlord for 23 million Naira.

Rented for 800k annually.

House was put up for sale recently and @ 15 Million naira, buyers were requesting to buy and pay in installments. Landlord refused to sell.

This is practical example that property cannot always appreciate. It's mere speculation and elements of luck and opportunities

2 bedroom deplux in abuja? 15m What part is that am interest if na abuja munucipke area .....he over paid for the house by the standard rule 800 k ×20 years =16m that the value of the house he over paid by 7m ,it might be a wrong location cos 2 bedroom apartment in gwarinpa na 800 k while wuse ,garki na from 1.5 upward ....never knew their was duplex 15 in real abuja ..

vacanci:


Living in a 2 bedroom duplex in Abuja for 5 years now. House was sold to landlord for 23 million Naira.

Rented for 800k annually.

House was put up for sale recently and @ 15 Million naira, buyers were requesting to buy and pay in installments. Landlord refused to sell.

This is practical example that property cannot always appreciate. It's mere speculation and elements of luck and opportunities

since na abuja u dey ....sherrif plaza land was bought by my late.......for 2m in 1985 developed around 2002 what the current value .....

ahiboilandgas:
2 bedroom deplux in abuja? 15m What part is that am interest if na abuja munucipke area .....he over paid for the house by the standard rule 800 k ×20 years =16m that the value of the house he over paid by 7m ,it might be a wrong location cos 2 bedroom apartment in gwarinpa na 800 k while wuse ,garki na from 1.5 upward ....never knew their was duplex 15 in real abuja ..

FCDA owner OCCUPIER, after the shopping complex. 200 metres from the police station which is close to the mosque.

It's in one of the best environments to live in Kubwa. Best road network, excellent drainage.
Under one minute, you are on Kubwa express. From there you can view the streets lights on the Kubwa zuba express.

I will snap it now

Meanwhile, I am not an estate agent and so nobody should ask me further questions on purchase. I live my quiet life here better than many places in the city. From here, I hit Central area in 18 minutes if the traffic is not much, else 25 minutes.

I didn't believe a place like this existed in Kubwa until I was searching for a house.

ahiboilandgas:
since na abuja u dey ....sherrif plaza land was bought by my late.......for 2m in 1985 developed around 2002 what the current value .....

In 1985 my father was a warrant officer in the Nigerian Army with 6 children. His salary was N500. Not 5k but 500 Naira. I will never forget this. You can ask any retired military persotthat was in service that year.

Now how do u see what 2 million was those days. It must be one hell of a money. Who knows, onikan stadium could be built with that then.

Barrytone:
Senior secondary class 1, i was told there is always a point where addition of factor of production doesn't equal improve production. The rate we make people believe that by 2050 houses will be 100b naira is false. When it keeps growing like it is now and nobody is buying prizes will come down. The art of selling is a profession, learn it. As it stands, learnt long ago here on property section that those houses we call over a 100m can be built with 40m or less. Now the area is the next point to look at and i quickly remind you of our former Apapa and also reminding us the newer city are emerging that will make banana island unattractive in few years. I said it earlier here that its wrong for a young man to start life thinking property is the future, its a stereotype that i also believed in. The wealth of the earth is not in the earth, reason the richest folks are not landlords. Duty calls, will finish this episode when am back by evening.

I also feel the landed property appreciation is usually overrated and overemphasized in a bid to lure people to invest.

There will definitely be a cap.

I am keen on reading your nuggets, bro.

ahiboilandgas:
since na abuja u dey ....sherrif plaza land was bought by my late.......for 2m in 1985 developed around 2002 what the current value .....

Sheriff plaza is being demolished,wonder what they are planning to erect again.

1985, then I was using 25kobo. To me 2M is blood money then.lol

All of these discussions are educating,such that no one wants to talk about treasury bill this time around.

Kudos to u all.

Please, guys, say sth about this. This is the total question in my mind before commencing this TB..
I've studied the thread from page 1, and this is just the bit that's remaining to go ahead and make my decision.
Thank you so much..

odimbannamdi:
Good morning guys,

I have some money i want to stash away for a project i am hoping to embark on by March next year.

But i have never been a fan of saving money in the bank at all, so Treasury bills is topmost on my mind.

The sum is around 400k. How best do i proceed? Which bank would you recommend? What tenor is best?

Please advise me, guys.

Thanks

In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

Barrytone:
In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

Exactly my point.

Property appreciation is not guaranteed. A friend acquired 5 units of self contain for 9 million naira. Put them on rent for 120k each.

4 years later, only 2 tenants are compliant. The rents from those 2 is usually used to repair damages caused by outgoing tenants that usually don't pay and leave with rents of between 6 and 9 months.

That money put in TB would guarantee an average of 1.2M naira annually without running from Piller to post or legal wahala often associated with tenancy

Barrytone:
In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

hmm bros you make sense. But someone explained that renting for the purpose of event center.

Barrytone:
In summary from my afternoon episode, as a young beginner, don't rush to owning properties but rather build your finance as property are not and might not be an investment. I finished a house 2017 and still mot rented out just because the rent is awkward. 300k per flat, 2 flats. I have spent about 13m putting up that house. 600k annually gives me more than 20 years waiting period to get my money and not interest. Meaning if i had saved that money and me taking 600k annually it will last for 20 years. All this is in an ideal situation which me.and you knows will never occur. So expect to recoup your money in 30 years time. I started tbills in 2017, i was handling a 50m budgeted property. Had spent about 15m already before God opened my eyes to this. Rate was 18% then. The project was 53 rooms self content. At completion, max i will get is 5.3m also assuming ideal condition that rooms will be filled at all times which will not be. 50m tbill gave me 9m then. My neighbors were already hailing me.for the massive building and i knew my problem will soon start. I abandoned that project and comments investment, as i type i dont think am continuing that project in next 20 years. So many other instances. Build your capital and rather buy up houses with the proceeds of your investment if you insist on owning a property.

how about building your own house and stop paying rent, avoiding landlords dos and don't for him house?

Pharmtj:
how about building your own house and stop paying rent, avoiding landlords dos and don't for him house?

My thoughts is that you only have a filling of fulfillment that u own a house. Real estate investment is good if the rent to be collected is more than the capital invested. The

Pharmtj:
how about building your own house and stop paying rent, avoiding landlords dos and don't for him house?

My house is up for sale but nobody is asking, maybe am not shouting enough. House is worth 35m to 50m. I realized that if i invest that amount then i will use the interest to rent a duplex in the choicest estate in town and still have money remaining then i. 5 years my interests can buy or build a befitting home for.my family. A duplex is 1m to 1.5m in best estate in my town. 35m gives me 4.2m at 12%. Even i use 2m to pay rent, i have 2m to reinvest. I should be able to own my dream mansion in my dream area in next 5 years.