₦airaland Forum

Valthegreat:
Thanks for your contribution.
But we all are expecting FGN bond rates to fall as soon as possible as inflation eases out which means i can on enjoy this for perhaps just one more year. Or do you visualize a possibility of stable bond rate @17% going forward?

The beauty of bonds is that once you lock in, the coupon rates are fixed.


I think there's a June 2038 bond with a 15.4% coupon.

If you're able to buy it at par or a little premium (maybe N1020 per unit), you have the 15.4% locked in, even if yields later crash to 5%.

You get N4.3m tax free if I'm not mistaken.

Whereas your N4.7m rental income would be liable to 15-23% tax meaning you might get below N4m. When you discount maintenance, rent loss to vacancy, tenant default, it might be below N3.5m or below N3m in some cases.


Plus like others have said, you're not getting the N28m back after 15 years.

From experience, rental yields are super low, what makes it better is the capital appreciation if you own the building.

Valthegreat:
Thanks for your contribution.
But we all are expecting FGN bond rates to fall as soon as possible as inflation eases out which means i can on enjoy this for perhaps just one more year. Or do you visualize a possibility of stable bond rate @17% going forward?

I don't understand u.if you lock your money now at 17% for 10yrs bond.How is that your business if bond rates drops after a yr.
And is obvious u have made up your mind on the lease thing so why else are u looking for people opinion .Oga if u like u can go do dirty December with your money..lol

Streetinvestor2:
I don't understand u.if you lock your money now at 17% for 10yrs bond.How is that your business if bond rates drops after a yr.
And is obvious u have made up your mind on the lease thing so why else are u looking for people opinion .Oga if u like u can go do dirty December with your money..lol

By his write-up.
Seems he doesn't understand that bonds are locked-in throughout the years at that percentage(say 17%) per annum 🔐.

He think it varies yearly as economy variables varies.

I think it's an enlightenement issue not that he's already fixated.

Streetinvestor2:
I don't understand u.if you lock your money now at 17% for 10yrs bond.How is that your business if bond rates drops after a yr.
And is obvious u have made up your mind on the lease thing so why else are u looking for people opinion .Oga if u like u can go do dirty December with your money..lol

I think he probably doesn't know that bond coupons are fixed regardless of prevailing yields.

Then about seeming like he's made up his mind, I think the issue is that like pa Emma said, he's being offered the lease at N1. 87m per year, whereas he can re-lease for up to N5m per year with good demand, so he doesn't want to throw away such "seemingly good" deal in a hurry.

We are adding our own individual perspectives so he can have a balanced view and take what decision is in his best interest, and suits his peculiar situation best.


I used to say I would never do real estate cos of the low yields and illiquidity, I mean if I have a N100m portfolio and I need N10m, I can sell some stocks and sort myself, not so with real estate, you can't sell of 1 room from a 5 bedroom duplex that's worth N100m.

Even if you put up the entire property for sale, you might wait months before you close a good deal.

I never liked it, but I found myself in it 😁

emmanuelewumi:
For him to get that type of return, he might have to convert the property to a motel at about 5k per room per day and should be able to give him at least 20k per day 600k per month and N7.2 million per annum

Does it mean that the company who is ready to collect 28 million for 15 yrs
Then return the property to the land owners equally in 15 yr.How much was used in construction of such property to warrant such rent.i see the property as lacking standard and should not earn such rent based on current cost of good building materials and finishing
Finishing here is interior and exterior. Walahi u go do maintainace taya.What I am saying is the cost for such 2 flat is cheap and cannot warrant such rent.And if na yeye standard u go do maintenance taya from 3yrs as per person way dey building and construction business

Valthegreat:
I am to pay the #28,000m to the developer within one year and have the property for only 15years.

Where is the location of the property, this will give me an idea if the rental income of about N4.7 million is feasible

Valthegreat:
Thanks for your contribution.
But we all are expecting FGN bond rates to fall as soon as possible as inflation eases out which means i can on enjoy this for perhaps just one more year. Or do you visualize a possibility of stable bond rate @17% going forward?

Any percentage you purchase a bond, it's fixed for you at that percentage. No matter what happens in either decline or upside in the coming years.
That's why it's called a BOND.
like "BONDAGE"
"carpenters BOND GUM"

Streetinvestor2:
Does it mean that the company who is ready to collect 28 million for 15 yrs
Then return the property to the land owners equally in 15 yr.How much was used in construction of such property to warrant such rent.i see the property as lacking standard and should not earn such rent based on current cost of good building materials and finishing
Finishing here is interior and exterior. Walahi u go do maintainace taya

He should just buy solid stocks. Look for dividend paying stocks that the expected dividends in the next 8 years or less will give him N28 million.

A yahoo boy bought a block of 4 flats (2 bedroom) for N80 million in 2020 during the lockdown. The rent per apartment was 750k per annum and total return of N3 million, the property should have a current market price of about N150 million but rent is now N1 million per apartment or N4 million for the property.


Just imagine if had bought GTB at N12, Presco at N50, Nahco at N2.50, Zenith at N10 during the lockdown.

Dividends earned from 2020; to date would have paid back the amount invested

Streetinvestor2:
Does it mean that the company who is ready to collect 28 million for 15 yrs
Then return the property to the land owners equally in 15 yr.How much was used in construction of such property to warrant such rent.i see the property as lacking standard and should not earn such rent based on current cost of good building materials and finishing
Finishing here is interior and exterior. Walahi u go do maintainace taya

This is a crucial question you've raised!

So the developer got the land from the property owner for only 15 years, which is the exact time he's expected to realize his cost plus profit.

Then he sells off that 15 years access to you today, so that he immediately recoups his cost.

Then it has to be that the cost to build the 2 flats is below N28m, maybe even below N15m if you factor in the developer's cost of funds and his profits.


So what kind of flats are you able to build 2 units for N15m in today's naira?

Like N9m on the 2 bed and N6m on the one-bed?


That's including general things like septic tank, overhead tank, borehole, gate etc which you'll split into 6 to get the cost per flat.


Except if I read correctly that the developer didn't actually build from scratch but only renovated.

If that's the case, then the more serious question is now:

What's the original owner's gain for releasing his house to the developer for 15 years if all the developer did was renovate and will now deny him access to his property for 15 years at which point the building might be in a worse position than it was before the developer's renovation.

I believed you will better off betting on Presco or okomu.

It's almost sure that presco will deliver 2m in dividend on that fund for 14 years and 1m for first year assuming you bought this month at 1400, no capital appreciation or re reinvestment of dividend. You will get 29m with your capital intact and this is what I believed is the worst case scenario provided presco did not run into natural disaster or serious insecurity issues.

awesomeJ:
The beauty of bonds is that once you lock in, the coupon rates are fixed.


I think there's a June 2038 bond with a 15.4% coupon.

If you're able to buy it at par or a little premium (maybe N1020 per unit), you have the 15.4% locked in, even if yields later crash to 5%.

You get N4.3m tax free if I'm not mistaken.

Whereas your N4.7m rental income would be liable to 15-23% tax meaning you might get below N4m. When you discount maintenance, rent loss to vacancy, tenant default, it might be below N3.5m or below N3m in some cases.


Plus like others have said, you're not getting the N28m back after 15 years.

From experience, rental yields are super low, what makes it better is the capital appreciation if you own the building.

I have FGN bond 2050 that I bought at a yield of 21%. Locked in the coupon to invest in equities and also borrowed against the investment

crownprince2017:
I believed you will better off betting on Presco or okomu.

It's almost sure that presco will deliver 2m in dividend on that fund for 14 years and 1m for first year assuming you bought this month at 1400, no capital appreciation or re reinvestment of dividend. You will get 29m with your capital intact and this is what I believed is the worst case scenario provided presco did not run into natural disaster or serious insecurity issues.

You did not take dividend growth into consideration, once earnings grow dividend will also increase.

28m planted in presco or okomu today for 15 years, you will be surprised with the magician called compounding.

emmanuelewumi:
You did not take dividend growth into consideration, once earnings grow dividend will also increase.

I didn't want to complicate the mathematics, I want to make sure even a market woman without any financial knowledge can comprehend.

emmanuelewumi:
He should just buy solid stocks. Look for dividend paying stocks that the expected dividends in the next 8 years or less will give him N28 million.

A yahoo boy bought a block of 4 flats (2 bedroom) for N80 million in 2020 during the lockdown. The rent per apartment was 750k per annum and total return of N3 million, the property should have a current market price of about N150 million but rent is now N1 million per apartment or N4 million for the property.


Just imagine if had bought GTB at N12, Presco at N50, Nahco at N2.50, Zenith at N10 during the lockdown.

Dividends earned from 2020; to date would have paid back the amount invested

100m would have bought 1 million units of each of those stocks kai! Looking for a currently cheap stock that has potential to deliver similar result in next 5 to 10 years. TIP, Chams, Tantalizer, Aradel are on my consideration list

Locotrader:
Finally, Japaulgold closed @ 2.78.

These buyers at 2.78 know something we don't know.

My technical indicator is pointing above 3.66 which is it's 52wks high.

A break above 3.66 is another new ride.
You know what ,new high begat new high.

Wait for it.
We all go dey alright.

I am done staying here for the year.

See you all again by new year 2026.

Signed out

12/12/2025

Looks like whoever is pushing JP waits towards the end of MKD to mop up the floor. Maybe Christmas is going to be an attractive red after all.

emmanuelewumi:
Rental yield are usually single digits.


I can get a double digit yield or return if I used the property for business.

Assuming I bought a block of 4 flats for N150 million and I decide to use it as a private hospital or motel, I can make N30 million per annum, but if used for residential tenants I should be expecting about N8 million per annum at N2 million per apartment

Your AI isn't accurate. There are exceptions daada.

The UK properties I mentioned give 10% - 12% p.a. and there's a 25 year government backed contract. If you want to peruse the materials, I can send and also forward your name and email address/number to them so they can reach out directly to you (no commitment on your part). You are not required to pay me any agency fee as I will get a referral fee (not much) from them but you can appreciate me oooo
Note that inflation is an unpredictable factor in Nigeria. Also diversification is wise

SonofElElyonRet:
Your AI isn't accurate. There are exceptions daada.

The UK properties I mentioned give 10% - 12% p.a. and there's a 25 year government backed contract. If you want to peruse the materials, I can send and also forward your name and email address/number to them so they can reach out directly to you (no commitment on your part). You are not required to pay me any agency fee as I will get a referral fee (not much) from them but you can appreciate me oooo
Note that inflation is an unpredictable factor in Nigeria. Also diversification is wise

How much is the property and how much is the rent.


How can rental yield be more than the yield on a 10 year bond

emmanuelewumi:
He should just buy solid stocks. Look for dividend paying stocks that the expected dividends in the next 8 years or less will give him N28 million.

A yahoo boy bought a block of 4 flats (2 bedroom) for N80 million in 2020 during the lockdown. The rent per apartment was 750k per annum and total return of N3 million, the property should have a current market price of about N150 million but rent is now N1 million per apartment or N4 million for the property.


Just imagine if had bought GTB at N12, Presco at N50, Nahco at N2.50, Zenith at N10 during the lockdown.

Dividends earned from 2020; to date would have paid back the amount invested

On a different note.Who really had time to look at stock market during covid
If you they watch foreign media dey see how people take dey die walahi nothing go concern u with stock investment. If not on strong personal resolve I would have participated.Do u know the number of unhealthy things people whr subjected to do as prevention even educated ones . I remember when everyone in my house lost the sense of smell/taste. My wife nearly finished us with garlic, ginger etc concoction. I stood my ground that nobody will take the vaccine after pressure from doctor friends. So I don't really see the prices than as opportunity lost...lol

SonofElElyonRet:
Your AI isn't accurate. There are exceptions daada.

The UK properties I mentioned give 10% - 12% p.a. and there's a 25 year government backed contract. If you want to peruse the materials, I can send and also forward your name and email address/number to them so they can reach out directly to you (no commitment on your part). You are not required to pay me any agency fee as I will get a referral fee (not much) from them but you can appreciate me oooo
Note that inflation is an unpredictable factor in Nigeria. Also diversification is wise

Do you care to shed more light of why those properties haven't been completely bought up in a hurry given that fixed income yields in the UK is under 5%


I mean if fixed income yields in Nigeria are around 15% and people still buy properties with 7.5% rental yields, even without any rent guarantees.

One would expect that properties with 10-12% rental yields in a market with 5% prevailing yields should get scooped up quickly without needing any referrals.



Can you shed more light as to why it seems the properties have more supply than demand?

Streetinvestor2:
On a different note.Who really had time to look at stock market during covid
If you they watch foreign media dey see how people take dey die walahi nothing go concern u with stock investment. If not personal resolve do u know the number of unhealthy things people whr subjected to do as prevention even educated one's.I remember when everyone in my house lost the sense of smell. My wife nearly finished us with garlic ginger etc concoction. I stood my ground that nobody will take the vaccine after pressure from doctor friends. So I don't really see the prices than as opportunity lost...lol

I bought stocks during COVID-19 ooooo.

My Stockbroker told me I was qualified for an additional loan of N10 million but I refused.

If I had known I would have bought 4 million units of Nahco at N2.50 which would have grown to 4.8 million units after the 1 for 5 bonus of 2022, rather I used my personal fund to buy.

But I bought stocks every month during COVID-19 of 2020

awesomeJ:
The beauty of bonds is that once you lock in, the coupon rates are fixed.


I think there's a June 2038 bond with a 15.4% coupon.

If you're able to buy it at par or a little premium (maybe N1020 per unit), you have the 15.4% locked in, even if yields later crash to 5%.

You get N4.3m tax free if I'm not mistaken.

Whereas your N4.7m rental income would be liable to 15-23% tax meaning you might get below N4m. When you discount maintenance, rent loss to vacancy, tenant default, it might be below N3.5m or below N3m in some cases.


Plus like others have said, you're not getting the N28m back after 15 years.

From experience, rental yields are super low, what makes it better is the capital appreciation if you own the building.

This is very elaborate. Learnt a lot here.
Thanks so much.
Besides I sent you a mail, kindly respond.

emmanuelewumi:
I bought stocks during COVID-19 ooooo.

My Stockbroker told me I was qualified for an additional loan of N10 million but I refused.

If I had known I would have bought 4 million units of Nahco at N2.50 which would have grown to 4.8 million units after the 1 for 5 bonus of 2022, rather I used my personal fund to buy.

But I bought stocks every month during COVID-19 of 2020

Walahi u get mind.What did u have in mind when u whr buying during that period .Is it that your saw the whole covid as fake.I was busy checking boody temperature of everyone in my house..lol.Hand sanitizer was like pure water around my family

Streetinvestor2:
Walahi u get mind.Who did u have in mind when u whr buying during that period

If have cash flow, you can make huge profits during recessions and unpalatable happenings like during COVID-19.

All the stocks in my portfolio paid dividends during the lockdown

chimex38:
By his write-up.
Seems he doesn't understand that bonds are locked-in throughout the years at that percentage(say 17%) per annum 🔐.

He think it varies yearly as economy variables varies.

I think it's an enlightenement issue not that he's already fixated.

You understood the matter better than our street brother.
I thought bond rates varies like interest rate.

Valthegreat:
This is very elaborate. Learnt a lot here.
Thanks so much.
Besides I sent you a mail, kindly respond.

I've now responded.

SonofElElyonRet:
Your AI isn't accurate. There are exceptions daada.

The UK properties I mentioned give 10% - 12% p.a. and there's a 25 year government backed contract. If you want to peruse the materials, I can send and also forward your name and email address/number to them so they can reach out directly to you (no commitment on your part). You are not required to pay me any agency fee as I will get a referral fee (not much) from them but you can appreciate me oooo
Note that inflation is an unpredictable factor in Nigeria. Also diversification is wise

I live in rented apartment paying N1 million per annum. Landlord sold the house for N69 million to a new owner who is now the new landlord and increased the rent by 50% to N1.5 million.

My wife was wondering why I didn't bother to buy the house even when I had the money. I told her if I decided to take the least risk at the time the house was sold, I would have bought an FGN bond at 20% and will be getting coupon of N12 million per year. Out of this I will pay the rent of N1.5 million and have enough cash of N10.5 million which I can compound in dividend paying stocks.

The landlord just spend about N500k to do some work in the house.

Valthegreat:
You understood the matter better than our street brother.
I thought bond rates varies like interest rate.

OK no vex the way I came out.I didn't know u whr not informed how bond operates.
I have it in my portfolio

emmanuelewumi:
Where is the location of the property, this will give me an idea if the rental income of about N4.7 million is feasible

I have answered this before naa.
It is at Onipanu, the printing business area of Somolu.

emmanuelewumi:
If have cash flow, you can make huge profits during recessions and unpalatable happenings like during COVID-19.

All the stocks in my portfolio paid dividends during the lockdown

Money matters was my last worries during that period. Looking at what was happening in developed countries and remembering our dead hospitals. Some states from news didn't even have single ventilator. Did u know people whr drinking salt like minerals and bathing with it..lol

unite4real:
I live in rented apartment paying N1 million per annum. Landlord sold the house for N69 million to a new owner who is now the new landlord and increased the rent by 50% to N1.5 million.

My wife was wondering why I didn't bother to buy the house even when I had the money. I told her if I decided to take the least risk at the time the house was sold, I would have bought an FGN bond at 20% and will be getting coupon of N12 million per year. Out of this I will pay the rent of N1.5 million and have enough cash of N10.5 million which I can compound in dividend paying stocks.

The landlord just spend about N500k to do some work in the house.

We discussed this on a WhatsApp group over the weekend.

I shared the opinion of a content creator who said once you have the resources to buy a house, please buy and don't think of business or investment.


I said that was the best advise for 95% of the population and a wrong advise for 5% of the population that are very good with capital allocation.

I told them that when Dangote came to Lagos in 1977, he got 500k from his family. The fund could buy 20 houses in Lagos in 1977, but he decided to be a tenant at Surulere for about 6 before he moved to his house VI