₦airaland Forum

quertyquack:
No way. That's reverse hustling if you ask me. The interest on tbills barely accounts for inflation and peradventure the currency is devalued, you lose even more. If the property fetches 500k annually, be patient and compound it, then do the business. My two cents.

The interesting thing about devaluation is that that 500K yield would also be affected. The property value itself will likely increase to reflect inflation, but that also has a negative effect on the ease of disposing it. Of course, this is if other factors remain the same; a slight shift from the government to develop the area may mean jackpot, but now we're speculating!

Currently, the average global Real Estate annual yield is under 8%, including in Nigeria. In a developed country with stable economy of <2% inflation, 8% is a lot. In Nigeria, that's nothing for short-term gain, unless your property is in strategic localities within the big cities (Lagos, Abuja, Port-Harcourt, etc).

Just to reiterate, Real Estate is good for long-term investment, and it takes more than patience, there's work involved.

spyder880:
We will most likely be selling this lands in square metres. Don't go looking for bigger plots because you will pay for every meter

Great, I was about to ask! That's a better way of pricing, so it's cost/sqft.

mekaboy:
Is it advisable to sell property to invest in tb. A young man has a property that generates 500k annually. He wants to go into biz but 500k is not enough.

He has decided to sell the property for 12m invest it in tb and use the interst for biz.

Would u advice such a person to proceed, seeing that the value of that 12m might be less after 1 year?

Property value appreciation is based on several factors: proper maintenance, surrounding developments, consistency of tenancy (i.e. property must be at it's full capacity), etc. If at full capacity, all he's truly getting is N500K/yr and the value of the property itself is truly N12mil, then yes it'll make sense to invest in TBills. At 14% interest on a 1yr tenor, that N12mil would have a true-yield of over 1.9mil (that is if he keeps reinvesting the interests, or N1.68mil without reinvestment.

One has to take into account inflation and other economic factors. Real Estate is best-suited for long-term goals. TBills is better for short-term investment.

adrianstylez:
So when next can I invest my cash??

Like he said (and it's been repeated here), TBills happen every two weeks. If you want to get in on the next, talk to your bank rep 1 week in advance.

Aventures:
correction pls. The site is a plot and half but the building itself sits within a plot, and the recreation area extends to the other half.

Great design, and interesting use of parking space. By a plot and half, do you mean 50x120? It seems much bigger than that.

FastShipping:
The cost of metal is out of this world.

How much are we talking about here? Also, is it the cost of buying them here or importing that is expensive?

If you know some details, please do share.

EgunMogaji:
An astute thought.

So I'm still debating doing my build with 6" blocks on the exterior and using steel studs on that part facing inside and the entire interior partition. We have steel studs here in Nigeria and a Nairalander uses it a lot to do fancy wall work.

The thing is the cost factor. I am working out a spreadsheet to calculate all of this. I just haven't been able to get the cost of steel studs as well as the installation though I can supervise that.

So many benefits of building with steel and drywall, and when you do find out the cost for materials and installation, please do let us know!

OK, here's a question.

Why don't we build with treated/insulated hardwood in Nigeria? You know, a house where the exterior walls can be blocks/concrete, but the interior/room dividers would be wood? Think of the freedom and cost-reduction in running electrical wires/pipes, plumbing, and even future reconstruction/expansion.

My high school in Abia built in 1929 has residential buildings built entirely of wood, and some still look good!

ukay2:
My oga feelamong and other NTB gurus,

please can I have a link for 4th quarter NTB programme calender?

There's no 4th quarter calendar. What's available is historical data, up to the 3rd quarter. Add 14 days to each auction date, and you'll have your schedule. Last auction was Aug 19th; the next will be Sep 2nd, another on Sep 16th, and so on.

Royal155:
Have you invested in treasury bill before? And if you have, so custodian fee was not deducted from your interest abi?

Stop talking as if nothing will be deducted abeg!

Custodian fee isn't Value Added Tax, and my response was referring to that. Custodian fee is significantly lower than VAT, which is what you get charged on things like fixed deposit. This has already been explained to @princeuk21 and this thread already covered this point.

By the way, CBN website is your authoritative source of truth on this, so you can always confirm on their website. No taxes on NTB, only custodian fee.

princeuk21:
I do get commission/vat, custody fee/vat debit when investing is that not same as yours? or am I the only one getting this debit here??
unit4real d question also goes to you bro please I need explanation.

There's no vat for NTBs, no tax at all. All I get charged (and what's legally permitted by CBN) is custodian fee, which is almost negligible with a decent capital. If you're being charged anything else, you're getting shortchanged.

princeuk21:
lol VAT free?

Yes.

I know the question wasn't addressed to me, but this is what makes NTB attractive: Unlike fixed deposit, no taxes/VAT, and interest payment is upfront, which could be used for reinvestment.

ukay2:
so I can bid for 365-day tenor come 3/9/2015?
your response is highly appreciated.

Yes, likely. You still need to confirm with your bank rep.

ukay2:
Please can I get a link on NTB calender for 4th quarter 2015(September-December2015)
I need it URGENTLY.
Thanks.

CBN doesn't have the calendar for your request; however it's easy to know the dates. Last NTB auction was Aug 19th; the previous one was 5th, and the one prior was July 22nd. So, essentially add 14days consecutively and you'll get your Sep-Dec schedule.

Next bid would be Sep 2nd, and it's advisable you issue your instruction to your bank rep 1wk in advance.

Also notable fact is that 364-day tenors are done once a month, as opposed to 91 and 182day tenors.

For those who need to know historical and current rates (which CBN website delays in releasing), go to this website and search for NTB Auction, then click on your date of interest.

TBills are usually done roughly every 2 weeks. See attached for August 19th results. You're welcome!

Datanet:
bodmas requires that you treat addition before subtraction.

so for a scenario of
3 + 9 - 3 + 3

only select numbers next to addition sign and ignore others.

so to make it clearly using parentheses it would be
(3 + 9) - (3 + 3)

those are the numbers closest to the addition sign before you ca then treat subtraction

hope this helps

No. Respectfully, your application of parenthesis is incorrect. Have you done quadratic equations before? What happens when you remove brackets following a negative sign? The (+-) signs that were inside change.

-(3+3) is equal to -1(3+3), which is equal to -3-3. The signs change. Don't apply BODMAS while negating other mathematical rules. And please stop saying "hope this helps". I've taught university level Calculus; this is very elementary and the argument is silly.

Datanet:
the answer is still 6

minus sign is only impacted in a multiplication scenario.

like -3 * 3 = - 9

how when applying bodmas you only work with numbers next to the sign in question.

hope this helps.

Please stop the silliness, the (-) came after the multiplication, and is a property of the value 3. Hence, the computation (-3)+3 is zero.

Datanet:
...therefore you have 3 + 9 - 3 + 3 left

3. Addition = now do only numbers connected to addition sign. tht is 3 + 9 and also 3 + 3

therefore you have 12 - 6 left

4. Subtraction = subtract numbers
12 - 6 = 6. qed

So, by YOUR 3rd rule: 3 + 9 - 3 + 3 => 3+9 and 3+3??

Don't you see the mistake there? How did -3+3 become 3+3?

Again, when students make silly mistakes like this, they're to blame, not the academic system.

I weep for our academic system... actually, no, our academic system is better than this! I weep for the ignorant ones blindly insisting that they are right to something this simple.

It's laughable to say Google can't do BODMAS when you have no idea the brains behind the search engine called "Google". These folks employ the brightest researchers in their field to solve the most complex/abstract problems, and BODMAS is the minutest of those.

If you're going to use BODMAS, apply it properly, and don't negate other mathematical rules.

-A+A is ALWAYS zero. Applying brackets doesn't change that.

The answer here is 12.

When will we stop creating open drainages? Those things are hideous and pose traffic/health hazards. It's not even technically hard to build enclosed ones. Developed cities actually have a dedicated Drainage department that oversee this thing.

Can anyone confirm that First Bank now lets clients to specify their preferred minimum bid? It'd be a nice change, if true.

Interesting viewpoints. It's amazing how much society can affect people's mindset. We have folks thinking "I want it here and now", and few others looking constructively into the future.

Until you live in a sane functioning society with abundance of opportunities and security, you won't understand that N20mil is nothing. In fact, being monetarily "rich" in Nigeria means nothing.

Nobody is safe in Nigeria - rich or poor - and nothing is predictable, except further deterioration. We live in mansions powered by generators (health hazard) and boreholes, burglary proofs, 15ft fences and gates. Essentially you're a prisoner in your own house! The more you make the more scared you are of your life and your family's. Poor infrastructure and mindset everywhere! No accountability.

Again, until you live in a sane functioning society, you won't understand.

darenyx:
Seen... was a mix up.. it will actually take 1.8m to get the carcass of that building done.. that's what I intend writing, not 18m, it's not a house made of gold

Many thanks for taking not of that error

Thank you for the correction; that gives up-and-coming dreamers like us hope, instead of heart-attack

darenyx:
Good day sir.... I don't remember quoting 18mil for a 2 bedroom bungalow, please point me to the post if I did, and I will correct the mistake

Thanks sir

The response was on page 2 of this thread, on April 13, in response to mxxpunkxx1 for the building specs below:

Two bedroom bungalow (both rooms ensuite)

External building dimensions : 9.75m X 12.275m
Land requirement : 15m (50ft) X 15m (30ft)

Features :
Lounge (4.35m X 3.8m)
Foyer (2.250m X 1.7m)
V.toilet (1.2m X 1.5m)
Dinning (2.4m X 2.4m)
Kitchen (2.65m X 2.55m)
Store (1.3m X 1.5)
Bedroom 1 (3.3m X 3.6m)
M.bedroom (4.2m X 3.750m)
Baths (1.5m X 1.350m)

An updated cost estimation will be appreciated.

@darenyx
I'm curious to know how you estimate building cost. How can this 2-bdrm cost 18mil while the 5bdrm (incl penthouse) costs 9-10mil?

feelamong:
I just got this mail from my brokers whom I always do Treasury Bills from..

It looks a cool investment, especially now that the Tbill rate are lower than the guaranteed return

• The Interest rate is guaranteed at 13.75% for one year only (After which it will be reviewed in line with prevailing market conditions)
• Interest are paid to customers every 90 days with automatic renewal thereafter.
• There is an Asset manager fee of 0.5% on the accrued interest.
• The Minimum Investment is N1M.

OK, so 0.5% deducted on the interest, but how about tax deduction? Also, considering the interest is spread out quarterly, it makes the actual yield of T-Bills (at current rate) still more attractive.

princeuk21:
happy investing guys, pls make sure you don't ask about the interest when you invest 100 Naira in treasury bill because I can see alot of novice now rushing into NTB without reading. when there is too many information error is present. Enjoy!

We all started from somewhere. Let them ask, better than making uniformed decisions. I do however agree they need to read through the thread.

Luckystar220:
u omitted the second question bozz, pls jus try and clarify me

You can roll over as many times as you wish; simply instruct your bank account officer before your current tenor expires.

mokset123:
I am grateful for your insightful breakdown.
But where my problem lies is that a friend of mine purchased tbills as at nov last year at 10% for 91 days With 9m.
8m was deducted while 1m was left as his upfront.
So why has the yield dropped in a short period of time?

Your friend's purchase couldn't have been for 91 days. That 1mil implies approx. 11.1% yield, and the 8mil will be held for a full year.

@spyder880

Considering it's been 4 years since this post, I wonder the price difference in 2015. What do you figure it'll cost to fence and gate 2 adjacent plots of land? One is 50x110ft and the other is 50x80ft.

Royal155:
After the the principal has been debited from my account, do I have to be crediting #10,00 every month till the maturity period? Cos I don dey hear some kind gist for my area so ooo!

I don't understand your question. Once your principal is debited, all that's left is the interest paid up front. Once the tenor ends, you get back your principal. Ah, please read the thread. This is treasury bills, not fixed deposit.

Royal155:
1. Assuming I decides now to invest N100,000 at an interest rate of %10 for 91 days, how would I calculate my profit after maturity?
2. With the above principal and rate, how would I calculAte my profit for 186 days and 364 days?
3. At the end of maturity date, what should I do to get back my principal, after receiving the profit upfront?
4. Please, does First Bank accept a minimum of N100,000 and what are the possible charges accrued to Tb's?

Thank you all in anticipation. Please gurus in this thread should help out!

It'll help if you actually read the thread, your questions have been answered plenty times.

Rates are always calculated per annum, regardless of the period of the investment. 10% on 91 days should be divided by 4, which translates to 2.5%. Same with 182, divide by 2.

You don't need to do anything to get back your principal; it automatically drops back into your account at the end of the tenor, unless you specifically instructed your bank to roll it over, in which case it'll be reinvested for the new going rate - whatever it is.

Yes, First Bank accepts 100k, ask your bank rep for more details.