₦airaland Forum

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.

Kokobay:
Hi...any one knows Stanbic IBTC'd secondary market rates tgos morning?

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.

Barrytone:
Let's know as you get back your capital today for those with today's maturity. Thanks

Stabic alert for matured TB just dropped. 'NextLevel' secondary market loading. FG needs to pay my Landlord his one year rent.

Alert for matured TB just drop from Stanbic.

feelamong:
I dont think its a good idea to rush into a long term TBill deal now.

Naija is broke and the FG needs to borrow over N1TR in this quarter..

I see rates going to as much as 14.5% in the coming weeks.

Just look for good short term secondary market deals and lie there for the small time.....

I normally do long term o as i use it to pay my rent which falls due early October.

feelamong:
Yields are gradually hinging upwards....

TREASURY BILLS AUCTION 11/09/2019

91 days -------------11.1%

182 days -----------11.79%

364 days------------- 13.286%

Good. I have a TB maturing today and another one next week 19th. Will do a secondary market after that.

Philantropists:
Good you asked, he is not financially stable at the moment, i believed taking care of his child's school will lift 10 percent of his burden off. I intend to give him a cheque of N10 million but i thought about him using the money to womanize and finish it in one year then i feel Treasury bills or Bonds will yield N1.3 million per year at 13%. If he decides to have other children he will cater for them, i can only assist to an extent.

I believe TBills or Bonds yields will put this particular child through up till University level at annual interest of N1.3 million a year.
Wow a relative of yours connived with the school mgt, people are just mean. i will try see how this can be avoided.






Ok i will do that, they are based in a city called Enugu, do you have idea how much good nursery schools charge as his quote seems to be high, I guess there are good private schools taking between N100k to N150k. Sorry if you are not based in this area, just thought i'd ask.

Thanks






Could you pls provide me with some info for some schools if you have, they are based in Enugu, I can actually make inquiries on his behalf and make recommendations.
Thanks





Haha post office indeed, the fees N900k/year for a child that is going there to eat biscuits and watch spider man is high but worth it if there is excess money but in Nigeria, quality is not usually in line with high prices. Wow just N100k for children, abeg give me the contact i will make further inquiries with it and if he agrees i move them to Abuja.






Ok, I will look intobonds thanks, Nigerian bonds you mean? I will look iinto high tenure bonds as it will yield higher interest.



Thanks



It's Enugu

Do not give him that cheque for 10m. I repeat. Do not give him that cheque for 10m. Do Bond instead of TBs. Bonds pay interest at intervals. That interest at intervals will then be used to settle the school fees every term.

I commend you for wanting to train the child. You can even make it in such a way that when he child finally graduates, if he wants to startup a business, you can give him the 10m as capital.

Btw, iam based in Lagos and not in Enugu. So will not know about schools there. Maybe you should google the Catholic diocese in Enugu and check their websites. Most likely they will have nursery and primary schools and you can tell your brother to take the child to one of them. He cannot connive with such schools.

emmanuelewumi:
If I may ask what happened to your brother, that you want to be fully responsible for the education of his child?

What happens if he decides to have the second, third, fourth and fifth child?

The most important thing is to make sure you have a system and structure in place that will ensure the sustainability of the help you want to render to brother's child(ren) till they finish their University education. You should know that this is something you will do for the next 18 to 20 years.

I want you to carry out a personal investigation to determine the average school fees for Nursery classes in that part of the country. I have been a victim whereby a relative, I assisted with her child school fees was collecting three times of the school fees from me. This continued for 2 years before the truth came out. The relative connived with the management of the school, by giving me inflated school fees bill.

Just imagine and iam sure this person will be complaining that we have bad and corrupt leaders. Imagine if such a person now gets to power at LGA, State or Federal level.

Philantropists:
Guys i have a question, I want to offer scholarship to my brother's child, he just informed me the nursery school fees per semester is N300,000 i.e. N900,000 per year for a 3 year old child.

Question 1; i'm not current with the school fees for nursery pupils, do nursery school school children pay this much for good quality schools in the eastern part of Nigeria.

Question 2; Can i invest N10 million in Treasury bills on behalf of the child and they can use the interest payments to pay the child's school fees or rather go for bonds.

Ask him for the name of the school. Then google it and get their contact. I doubt a school charging that high will not have a website or a contact. Then send a mail to them to inquire of their fees. Do not give your surname to them as they can easily use that to match to your brother's surname.

tolajay:
By Q4, FG will need over N1trillion from you money.

So, get ready!

https://www.thenewsguru.com/news/nigeria-news/article/fg-borrow-n1-003trn-t-bills-investors-q419/

Iam already warming up as my two TBs will mature on September 12 and September 19.

zaynie:
Hi everyone!
I'm back in the 3 to 4yo classroom and I'm super excited to start the school year.
If I can, I'll try to drop our weekly schedule here every Sunday.
*if I can*
[b]I hope you guys are getting hyped for the school year too! [/b]School fees, bags, lunch bags, uniforms, socks, shoes, books, snacks!!!!!!
Give yourself a pat on the back, you dey try!!!!!

Yes o. My kids in secondary school boarding want to bankrupt me before they go back. Shuooo. The consumption no be here o.

ify2016:
Which mutual fund is better for my monthly savings of 20k. ARM or IBTC? Or is there any financial institution called Mutual Fund for saving my money monthly? Very urgent please. Thanks

Money Market Fund(MMF) will be better for you instead of the generic Mutual fund. Read more of this on this thread below:

https://www.nairaland.com/1912965/mutual-funds

Ikpeazukerosene:
Don't worry my brother, let me help you.

Check pages 53 to 481, then check pages 515 to page 727. The answers are there.

What are friends for?

Chai. Na people like you dey ask for extra sheet 30 minutes into an exam when some people still dey read the instructions and the questions to the extent that you go dey quote the textbook page when answering the exam question.

osigiepurr:
Top greetings of the day to all the gurus in the house.

I am new to Tbills. I have 500k that has been lying helplessly in my current bank account for several months. I suddenly stumbled on this intellectual thread which i found very useful to investing my hard-earned money.

Someone introduced me to I-invest app where i can invest on Tbills. Please, i need candid advice from the experienced guys here on how to go about it. I want to also know if the App is truly safe to invest on Tbills. Lastly, what are the pros and cons of using the I-invest App. I am a little bit confused about the whole thing.

Or, would it be nice to walk into my bank and invest directly with my bank instead of the I-invest App?

Please, i am a novice to Tbills. Dont be angry with my numerous questions....i just want to be sure where and how to invest my 500k.....

I will sincerely appreciate your response.

A discussion on I-invest app on this thread is normally very heated and tends to derail and polarize the thread. So i will advise that you paste I-invest app on the search option of this thread and read what has been said about it and then draw your conclusion.

wisedollyp:
Abeg o. I need suggestions urgently...

Do you like catholic schools?.

drdrei09:
If I put 2 million in treasury bill, what's the least amount I'm likely to get as interesting, please?

Calculating the least amount you will get requires three information from you. These are Principal, Tenor and Rate. You have only provided Principal.

Na only 'winch' fit know the Tenor and Rate wen dey your mind. I no be 'winch'.

mimini:
Thank you. is it possible that after investing this month, I can invest another month in same bank before the first investment matures?

You can even invest the day after or the day after after or the day after after after or the day after ......

Hallenjay:
I've 100k for Start now... Do they accept dat and opening a new account for dt purpose, hope there's no conditions dt I'll av. To wait for certain year or months

Do not know Stanbic minimum amount for TB. I have always done above 100k. You need to first of all open an accoint with them before you can do TB. You can open a Savings account. The minimum amount for that should be 1k or 5k. You can also send a mail to their customer care for detailed information. They respond very fast to enquiries. Check their website for the customer care email.

Hallenjay:
pls which bank is better in term of interest and dat have a minimum of 100k for a start in TB... I've tried fixed deposit many times wit fcmb I gat got nothing. Like 0.5% or less something I can't relate with.
Kindly help... Someone suggest First bank I don't know if there's another else cos I don't like dem

I use Stanbic and so far i have been fine with their primary market rate. Never done secondary market.

Buffalo2:
Probably cos there are lots of Gurus in that school but if he can find his way out of the school's qualifiers, definitely he'll be back on our TV screens.

In a school of maths gurus, qualifying out of the school is another tough competition. It is as tough as the competition they are going for.

kaylieeb:
Goodmrn house...I did at Access yesterday for a tenor of 200 and something days
Invested 250k but 235 was deducted minus other charges and the woman gave me 10. Something percent .....pls how do I calculate help me out

I = ( P * R * T ) / 365*100 = 250,000 * 10 * 200 / 36500 = 500000000/36500 = 13,698.63

P = Principal

R = Rate

T = Tenor

I = Interest

Discounted Amount (DA) = P - I = 250,000 - 13,698.63 = 236,301.37 (excluding charges)

bamirotola:
Sir, small play! I apologize if I was petty with my response! Was just catching fun! Wow! You just burst my bubbles with these profiles.. I celebrate you greatly... I studied animal science from a reputable federal institution, and served with the ministry of Agriculture osun state and has worked with 3 firms in different capacity for 5 years from ranging from medical sales rep to procurement officer and logistic supervisor and currently in need of new work space sir, should you have any vacancy or link, I should be the one to consider, I would definitely be of great addition to any firm lucky to have me! My CV Is available on request sir!!

Best Regards
Adetola

No wahala.

Was just trying to correct the impression you have about people up North. Every region has brilliant people. I schooled with people from all over the country. When ministerial list came out, some people sneered at some of the nominees without checking the profiles of some of them. When i pointed out Dr Isa Pantami, DG NITDA (B.Sc, M.Sc, Phd Computer Science (ABU)) to them, their mouths were opened.

If you studied Animal Science, then make you begin head to Akwa Ibom now. The state has imported 2000 cattle to kickstart its ranching programme. Your expertise will be needed there.

naturalwaves:
Lol. You schooled in Warri??

Warri no dey carry last.

naturalwaves:
Yes, There is a serious brain drain in India as well. Ever heard of IIT, India? That is where all the geniuses in India go to. It will be easier for a needle to pass through the eye of a camel than to gain admission there. Now, when most people finish there, they get snapped up by American companies paricularly the IT Companies and the big players(Google, Microsoft etc).Those guys remain in American and barely contribute to India. America is an expert at taking talents

The academic competition in India is tough. For you to get admission into competitive courses like Medicine, Electronics and Communications Engineering(ECE), Computer Science and Commerce in certain universities, you need to score 100% in their equivalent of our Jamb.

dalexy101037:
Natural wave and nL 1960.. I appreciate you guys for explaining. O really thought those kids are performing magic every time. Now I understand is hard-work, dedication. Human brain can do anything in as much the owner of the brain is willing to embrace the process

My son's school has started preparing him and his group for the senior edition since last year September. He will be in SS2 by September. He did the junior category last year but did not make the finals. There was no holiday for him last year as he was kept in school for preparation. His school was entering for the first time. So it was a learning curve for them.

bamirotola:
He may be the local champion in your school!

You are very funny. You think i attended a local secondary school?. In my set of about 150 students, we currently have about 30 Medical Doctors of which about 5 are Professors not only in Nigeria but abroad. This is not to mention the large number of Engineers and Computer scientists. In my days, we did Additional Mathematics that had the terrifying red textbook by Godman and Talbert and not Further Mathematics.

Just to give you a hint of the school for you to know if it was a local school and therefore if the person was a local champion, the immediate past governor of Lagos state was my senior in secondary school.