₦airaland Forum

zamirikpo:
Yes every society has its problem, but u r comparing a random , difficult to control issue with blatant incompetence.

A mad man randomly shooting up a school is different from daily kidnapping, daily no light or no roads or evident insecurity. We see our wahala korokoro.....and do nothing to remedy it.

When 9/11 happened the govt rose up and made sure it never happens again. Hope u see the conscious effort the us govt is putting to stop random killing.and u must appreciate the delicate and impossible nature of such crimes. Pls what is delicate abt fiixing roads, getting steady power supply, good schools and hospitals.

Boko haram has a base, known territory and up till tomorrow they can not be stopped. Fulani herrdsmen are ravaging villages EVERYDAY, it's no random, I say EVERYDAY, and because the president is fulani, police cannot stop it once and for all.

If u soo loved ur country why did u leave in the first place.....

I did not leave Nigeria o. I have been living in Nigeria since i was born. Primary, secondary and University education was here and have been working here since then. Do not have any intention to leave to US as iam not comfortable with the stories iam reading about the place and also the way of life iam reading about. Moreover, the US or Canada or UK will never allow everybody in Nigeria to leave here and move over there. Some people must remain for here. Imagine 150m Nigerians moving to US or Canada or UK?.

igbizen:
Where is the war zone exactly?
So naija crimes have become war zone?
People that have not witnessed community clash, will be shouting war zone, war zone.
I don’t blame guys, I blame the media.

When these people see two area boys fighting and breaking bottles on the road, they will take off shouting war zone, war zone.

zamirikpo:
See wiith $120k u can get a house in the USA abi, but do u buy mikano, diesel, pay aboki, buy jeep cos of bad roads, and still sleep with one eyes open.

No comparison, ur $28k is far more meaningful in the USA than in naija.

So after buying the house in US for $120k and you now sleep with two eyes closed, no mikano, no diesel, no aboki and no need for jeep, you then send your kids to school and one small boy walks into the school one day and shoots indiscriminately and waste them or you go to the mall to buy sneakers and one angry man comes in and shoots indiscriminately or one olopa(cop) comes into your neighborhood and fires pointblank at you because he/she sees you standing by your window.

Every society get him own problems and wahala.

NL1960:
How much will you be expected to pay yearly after this down payment of $28k on $400k house?. Iam just asking for learning purpose.

ahiboilandgas:
may be 2500 per months with combine familu income...of 6k monthly u will be fine

That means using 400k as the amount for the house and doing a down payment of 28k, this leaves an outstanding balance of 372k excluding interest. 2500 per month gives a yearly amount of 30k. A yearly payment of 30k on 372k gives about 12 years. Let me say 13 years when interest is factored in. Not bad.

The real problem of housing in Nigeria is that you are expected to cough out the total amount for a house at once. The same with purchase of a new car.

$400k @ 360 gives 144m. How many people have 144m to drop for a house at once?.

Omonigeriarere:
Hey guys! We are tired of America and Nigeria comparism; please let's talk about today's bid.

Today's bid will be provided when CBN provides it. Let us learn while we are waiting for it.

needful:
$28k in usa will get u a brand new tear rubber bro. It may not be 2019 model but it will comfortable get u a 2015 or even 2016 model of car. Again it depends on the car, in some parts of usa, $28k will get u a down payment of mortgage. Then in Canada, 28$usd will get u a down payment for a house of about $350k to 400. And that same $28k usd will get u a brand new 2016 to 17 model of a car. $28usd will buy a mobile home wel equipped. Speaking with experience though.

How much will you be expected to pay yearly after this down payment of $28k on $400k house?. Iam just asking for learning purpose.

Grupo:
Student loans. And many parents don't send their kids to University.

Interesting and there are so many Universities there. So where do they get students to fill them from?. It cannot be from foreign students alone.

oluayebenz:
How is 10m ordinary 28k usd

In the USA if you have that in cash you be chairman

I thought USD 28k was small money to people in US as i normally see their University school fees ranging from USD 50k and several parents send their kids to University.

needful:
So u mean to say every body on this forum are male abi?. Change ur mentality about females, all of them arent slaying. Even some of them slaying still do so with their senses intact.

Honestly i do not understand this your response.

The OP understands my post as she has since responded.

deepwater:
i believe if u dont collect interest upfront, it would be reinvested and the interest on that as well would be reinvested, the circle goes on until the last 1,000 or so. perhaps that person only recorded the first interest and not other tiers of interest. hence s/he believed the interest was more than expected.


n.b i am just saying, never reinvested my interest before.
i dey use my upfront solve immediate need.
government must fund my basic necessity in this country.

i advise people to buy tbills in good rate at high principal, that way u can always use the interest to buy new inverter batteries every year to have constant power supply. pay your house rent until u build your own sponsor your kids to good schools et al with hassles. maintain ur vehicle at top shape once every year.

Gbam. Abeg, dey help us sing am to your fellow females as most of them do not understand.

aremso:
Whatever! Those that are vast in stock investment knows what am talking about. FY = financial yr end which is usually December for banks and they start to roll out their year end result for the previous ur in the current yr. Eg 2019 financial result would be out for most bank from march next yr. Can't understand your fiscal October whatever

You are right. All banks in Nigeria have no option than the December year end. They were mandated to do so by the CBN sometimes ago. What was happening was that some banks have December while some have March and some June. So when it is March, those that fall under that will massively go and take interbank from the December or June year end banks to shore up their books. This gave the erroneous impression that all banks were in the same category or doing very well in terms of deposit. The harmonization of the year end to December put paid to that.

Godbpraised:
stock till dey? i do not put my money in something i do not understand.

Stocks still dey o. Those that are very adept at playing it make so much money that thumps interest from TBs. Playing the stock market is hard work.

bigdot1759:
you're talking like a professor who never think/reason outside accademic life, must everyone invest in real estate just because you're into it? There're many & far beta investment that's more lucrative than real estate..... If someone belief in TBILL then let them do it, must all of us make it from one DIRECTION

emmanuelewumi:
Hope you read where I talked about the need to be diversified?

emmanuelewumi is a stock guru. I learnt so much from his posts and analysis from the now rested 'stockmarketnigeria.com'. It was by following his analysis that i built up funds from stocks to build my country home of 4-bedroom ensuite duplex built over a 4-year period. So i dey always read him posts and analysis very well.

Finelinks:
See why people fail comprehension in high schools.

He built on same land you called remote village. SAME LAND SIR. And now has commissioners as neighbours.

And hey, don't turn a volte face. Why applaud him? Or you no longer know your stance? Why approbate and reprobate?

You would deem it a liability even in 2004 that he built or did he tell you he had 1 billion in 2004?

Going by your argument, he would have invested it in Tbills and use the interest to rent.


As per my question, you have tried to evade it or wriggle out of it.

At any rate, it seems engaging in tergiversation is your forte. I may make no further rejoinder to this.

You are a very funny man. I do not have strength for round and round arguments. You like round and round arguments sha. Not surprising as you are mostly active in the Romance section. Na that place and politics section dem dey do round and round arguments.

He built on the same land after 8 years and not immediately he bought it. Note the key points in the post and in mine. He also used funds built up over an 8 year period to build. Simple and straight forward.

My advise to any young person is that he/she should build up his/her funds and use the proceeds to build that personal house. It is an advise and is not compulsory that the advise is taken. If you come into 2m-3m suddenly as a young person and decided to go and use it to build a personal house especially when you are still single, na your decision be that. Wetin concern vulture with plaiting of hair?.

Finelinks:
Suffering from DK effect?
I asked you a simple question.

Why did linda buy a house?

Why didn't she invest it in Tbills to get 145m per annum, then use 100m to rent choice house and keep 45m?


Or she didn't need extra money?


You were busy citing names i used in context, out of context.

Is that how you read? You cherry pick?

Gosh!

Linda now bought when she had built up her funds and not before. If her ROI in TBs is lower than her other investments, she will not invest in TBs. Do you know if she has investments in stocks?.

You have also refused to answer my own question which is "why did Linda not go to build or buy her personal house when she made 5m or you thought she made the 850m for her house at once"?.

ahiboilandgas:
me know this na since 1999 ,I bought my first land at 23 years 720k built in 2004 100 by 100 , I didn't have enough money the next was up for sale for 800k didn't have money but I was sure it will blow ....it was sold for 15 m in 2016 it pain me , I also build a house on my own in 2006 ...my Neigbour are house of rep members ,commissioner ,above average people ....i never regret that move my dad praised me my bq was built for 3m in 2006 is now on rent for 500k , I made the 3 m back since .....it not for all areas sha and must not be Lagos

This is what we are saying. You bought land as a young man and not built a personal house at that age with your first capital. You could have gone to build your personal house in one remote place at that age in order to be called landlord but you refused and instead opted to build up the funds and iam sure you were on rentage then.

This is what iam trying to tell @Finelinks.

Bought your first land in 1999 and built your personal house 8 years later in 2007. That is planning and building up of funds. You could easily have built the personal house in 1999 but you did not.

Finelinks:
NL1960
grupo
ahiboilandgas (see what you have beem saying. Another has confirmed it.

Go back and read his post. He did not use his first capital to buy the house. He bought from proceeds of built upTBs.

You are still missing it or have refused to understand. Nobody is saying you should not buy a house but do not use your first capital to do it as
young person. Na wa for comprehension o. Shuooo.

DigitalMallam:
There is no one size fits all when it come to investment, and I believe no one want to win this argument. Be it building for investment, TBill or what have you. Have a plan and follow it diligently. Each has its pros and con. I started building my first house in my home town a yr after my youth service and it took me 5 whopping years to complete, in the process I learnt some lessons but no regret, it made me wiser and thought me some lessons as well. Later on in life when I moved to Lagos and met an entirely different terrain. I could recall going on bended knee with my money at hand but my then landlady won't allow me to renew my rent. Never knew that was the standing rule in that house. You can't possibly stay more than 2yrs even if you work in CBN. Moving from one house or area has its effect on family, children's education etc. I was lucky to have heard of Tbill early in life. Luckily a better house directly opp her's was put up for sale, what did I do, I liquidated my entire Tbill investment and bought the house. It came at a cost, but I had to prove something to the woman. The fulfilment that comes with owning your own house can't be quantified, It was like a rebirth and I can plan better not to mention the huge respect you gain from the society. So let every one chart a course he/she believe is best and walk the talk.

You had already consistently built up your funds through TBs before you bought the house and not that you just used your initial capital to purchase the house. Moreover, having already built a house over a 5 year period, you already had some life experiences.

Finelinks:
Facts are stated to prove a particular thing and not to prove all things.

Linda was mentioned to prove or buttress the point that building a home is not always unwise.

It's not about tbills tbills.

Don't engage in ostrich evasions.

GOING BY YOUR ANALOGY, Linda should have even invested the 850m in tbills and used the proceeds to rent a choice place and still have change left.

Or don't you know how much she is losing? True yield of 850m is averagely upto 145m per annum. She should have used 100m to rent the best house and keep the difference.

Or doesn't she need extra money?

AS PER THE 5M blah blah blah, everyone does not live or work in Island. It's not a desideratum.

Where in Lagos can 5m build you a decent personal house that is close to the major business districts?.

Finelinks:
Facts are stated to prove a particular thing and not to prove all things.

Linda was mentioned to prove or buttress the point that building a home is not unwise.

It's not about tbills tbills.

Don't engage in ostrich evasions.

BLOWING IS RELATIVE OGA,


BY YOUR ANALOGY, Linda should have
even invested the 850m in tbills and used the
proceeds to rent a choice place and still have
change left.

Or don't you know how much she is losing? True
yield of 850m is averagely upto 145m per
annum.
She should have used 100m to rent the
best house and keep the difference.

Or doesn't she need extra money?


Even Dangote should have invested the 16bn he used in buying a Yacht in Tbills..
That would have given him circa 2.8 billion per annum.

This why i said you are missing the point of discussion. Nobody here arguing against using your first capital or using your 'tasere' money to build a personal house is saying it is all about TBs. The point being made here is that when you have low funds and you as a young person needs to choose building a personal house and investing in TBs, you should choose TBs in order to grow the funds in a less risky manner. If you cannot understand this simple flow and logic of this discussion then it means you are just arguing blindly. You have moved from Bill Gates to Linda Ikeji and now to Dangote. You keep mentioning people that have have made it through growing of their money.

Did Linda Ikeji just woke up one morning and saw 850m to buy the house or did Dangote just woke up one morning and bought a Yatch?. They all grew their money over time. There are people who grew their money through business, TBs, Bonds, stocks. Iam yet to see a person who grew his/her funds through the building of his/her personal house with initial capital or with 'tasere' money.. If you know of such a person, let me know.

Finelinks:
Young people starting a life is relative. So is the house in question. At what point along the continuum do they qualify?

At what point do they become ripe to now own a home.

Linda Ikeji allegedly bought a house worth 850m in her 30s.

Forget. No hard and fast rule. We can as well kill our old sick parents because they are now aged and bring no income. Or like ahiboilandgas says, throw away our wives and kids.

They are liabilities.

Linda Ikeji did not buy her house with her first 850m. She already built a business and had serious reserves before buying that house.

This is why i earlier said that you have missed the discussion.

A young person see 3m in his account. The next thing he goes to Mowe or Odogunyo in Ikorodu and build a small bungalow because he does not want to pay rent or does not want landlord wahala. Then every morning, he wakes up by 4am to go to work on the Island and gets home every day by around 11pm. Then weekend, he crosses his legs in his sparsely furnished sitting room and says 'iam now a landlord'. Meanwhile, he is far removed from activities in town as he finds it too stressful to leave that interior.

Is that the kind of advise you will give a young person if he/she comes to you for advise?.

I do not have a problem with a young person having 50m and he uses 30m to buy or build his personal house. My TBs can conviniently build me a house in the outskirts of Lagos but why will i do that and then be leaving home by 5-5.30am everyday and get home by around 11pm whereas the interest from the TB can get me a decent 3 bedroom apartment that enables me to leave home by 7:30am to work and get home between 6:30-7pm everyday?.

Look at your Linda Ikeji example. Where did she buy her house?. Banana island. When she had 5m, why do you think she did not rush to Mowe or Odogunyo to build a house?.

Finelinks:
Oga forget.

Even Bill gates and and his likes own their houses.

If you are big you are big.

Some level of freedom comes with ownership of one's house coupled with latitude to behave the way you like, avoiding landlords policing you about.

You should learn to read well and comprehend before responding to a post. We are talking of young people here just starting life and you are giving an example of Bill Gates. At what age did Bill Gates own his house?. Who is talking of being big here?. When you want to give an example, give an example of a young Nigeria. Iam sure your next example will be Michael Dell.

Agbalowomeri:
Not possible

However, I think he must believe there would be some magic behind the calculation
He probably doesn't know it's simple arithmetic being a newbie

Very possible. Have you not heard the word 'mercenary' during WAEC?. They just write on the board for you to copy. So the guy can even just copy the formula I = (PTR)/(365*100) and the solution as written on the board without actually knowing what it is used for.

Owiii:
Please I purchased 2m what of treasury bills at 11.6% for six months. Its to mature in november. How do I calculate the interest that will be accrued to me. Thank you

RabbiDoracle:
Pick up JSS 3 General maths. Answer is there.

You will surprised that this person got A1 in WAEC Mathematics.

ahiboilandgas:
he should sell the house and pay the bank the house wasn't really his ....he didn't cut his coat according to his size

Sell ke?. Do Nigerians sell their house even if they are dying of hunger?. You want that feeling and extra bounce when called Landlord to disappear?. Anyway, the man went to court. He got a judgement against him. He went to appeal and lost. Before he could say jack robinson, court bailiffs just came one evening and booted him out.

ahiboilandgas:
if rate fall to 6 percent? 0r your bank loose bid and landlord increase the rent how will u do ?

That is the element of risk that is in every investment. I will prefer that risk to going to build a property in an outskirt for N5m. If i want to sell, there is no guarantee that somebody will buy. If bank loose bid, you go for secondary market. I did not wait for October 2 primary auction when my two TBs matured. I simply did 339 days secondary market. That one don cover my one year rent already with landlord increase and i still get change left.

Willie2015:
There is nothing archaic in a young man first building a property to live.....
It is the first law of investment ...... if you can afford it ....
You can save the rentage cash and use it in other investment vehicles over the years...
No one will ever tell you that TBills has its own bad days too...
We have seen the days of 2% -7%.... each invst class simply has its bad days and good days...

That is the thinking which i said is archaic. If for instance, a young man has N5m, that cannot build him a property in a choice area. He can only build in the outskirt for which he will need to pay heavily on transport to get to work on the island or mainland. But if that N5m is on TBs or Bonds at 10% for 1 year, he gets about 500k which comfortably rent a decent accommodation for him while steadily increasing his investment. If for instance, after building the property, he looses his job, will he chop the property?. He might now need to sell the property in order to have some cash.

Ijeoma660:
Why building to live in or making profit from rent is the latest type of self-scamming in town.

I was discussing with a friend and we ran the simple analysis. Buying or building a house (duplex) costing you about 40 - 45m in a choice area including cost of land, building et all. That same 45m annually at a modest tbills rate of 10% will offer you about 4.5m which can still afford you a decent rent of 2m (assuming you have a moderate taste) with a balance of 2.5m that can adequately take care of school fees and some family upkeep.

Meanwhile the 45m duplex built will require some 22years before it starts to payoff or break even! This is not to consider the fact that a 20-year old house is already becoming old, maintenance ridden and of course boring. In a stricter sense when the kids are grown and someday leave the house you spent fortune to build, it no longer becomes welcoming as they move to boarding house or out of the country for further studies.

Whereas a rented property gives you the opportunity to move around from one part of town to another and still have a decent income to fall on, or utilize especially in this economy where there is no job security.

On the other hand in building to rent out. Statistically it goes to say that rents generate about 5-10% ROI and not profit to the owner annually.This translates to about 15 years before you start to make any profit from an investment of about 45m! Moreover, when a house is rented out the first rents are easy to get but subsequent rents suffers from what basic economics call diminishing marginal utility...lol

This is not to say building a house is bad or wrong but you can slowly use proceeds from your tbills and other sources to do this. Plan to build the house over a long period as a form of retirement home to present to yourself and spouse after a hardworking life or relocate out of the country as the case may be. This is obviously when the kids are already gone to college and the nest is becoming empty.

Good point on the bold. Iam already considering moving from my rented 3-bedroom flat to 2-bedroom flat. All my kids are in boarding house which effectively means that their rooms are only occupied by them for just 3 months in a year. It will become worse if i decide to move them abroad for higher education. There is somebody on my street who was recently ejected by a bank for owing loans he took to build his massive duplex. All his daughters are married and the son does not stay there. So he is just in the massive duplex with his wife and he is owing banks. Now that he has been ejected and the house taken over, he will now go and rent an accommodation.

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.

I normally tell people that a young man having in his mind to build a property to live in just to be called 'landlord' is archaic. You will hear some people say 'na rent i go die put'. I believe property is worth it when it is an estate with several flats.

I live in a 6 flats compound. Four of us that are the early occupants pay our rents constantly. The Landlord then saw that as a weakness and opportunity to exploit and started increasing rent anyhow. He was trying to increase our rent to catch up with the new tenants. One flat became vacant and it took 6 months to get a new tenant. The rent of the new tenant expired and has not been able to finish paying and now another rent is due. Another flat became vacant and it took 9 months to get an occupant. We were now surprised when the landlord gave us an increase for the next year rent and it was just between 8-10%. This is somebody that will wake up and do 40% and say 'anybody that does not want to pay should pack out'. Iam sure he was now starring at the prospects of 4 flats being vacant as we had already made up our minds that if he does his 30-40% again, we will pack out. A tenant is still owing part of a year with another year due. The new tenant is yet to complete agency and agreement fee.

The upfront interest from my TB pays my one year rent with some good change to flex whereas the capital would not have built me a bungalow in the same area. I no come Lagos come build house. Na money i come make for Lagos.

akinonigbinde:
your profit for a 91 day tenor of 10% on 150,000 is 15,000 paid upfront. N135,000 is deducted from your account and left with N15,000. This is your yield. At the end of 91 days, N150,000 is credited back to your account. Pure and simple

Wrong, wronger, wrongest.

I = (P*T*R)/(365*100)

Where:

I = Interest
P = Principal
R = Rate
T = Time or Tenor

Therefore:

I = (150,000*10*91)/365*100
I = 136,500,000/36,500
I = 3739.72602739726
I = 3,739.73.

QED

NB: This is what i was taught in Primary school in the village. Where you learn your own?.

Bengurion1:
Good day house,

I have a question please.

I submitted forms for primary auction of September 18, 2019 for 364 days at a First Bank branch. I received investment advice to day and the rate on it was 12.95% and not 13.3% which was CBN stop rate for 364 days.
I've called and the explanation am getting doesnt sound right. They have said that the bank decided to offer its customers 12.95%.

Can the bank decide the rate to offer its customers for a primary bid?

Yes. If you have N50m, you can specify your own rate before the primary auction. If you do not have N50m, you have to go with whatever rate the bank bid during the primary auction. See it as the bank selling to you from their pool in a secondary market scenario. In addition, that CBN rate is called Stop Rate. Some banks bid higher than that and fail. So most banks normally bid low in order to have a higher chance of succeeding. The CBN Stop rate is not known prior to the auction.

NL1960:
I just came out from there and these were the rates and tenors i was given:

59 days - 11.5%

150 says - 12.4%

339 days - 13%.

I went for the 339 days as i cannot wait for Primary market of October 2. Now waiting for alert.

Alert has dropped. Make i go begin do shakara for Landlord.