₦airaland Forum

SonofElElyonRet:
@emmanuelewumi
@awesomej

Kindly refer to my first post on the matter which answers some if not all your questions. Don't want to turn this into a real estate thread. I just raised the issue to contribute to the gentleman's question about buying a long lease apartment and Mr Emmanuel's perspective.. . If you are still pessimistic that's fine.. your right so to be.. I respect that.. but I'm a property lawyer and I know this is the real mccoy.. and like I said, everyone is free to conduct due diligence before commiting funds.

What is the price range of those properties and the average rental income generated from them

emmanuelewumi:
If na me, I will use the first coupon of N12.5 million to pay upfront rent for 8 years at N12 million.

Then borrow N36 million against the N61 million worth of FGN bond to buy quality stocks.N36 million is equivalent to 3 years coupon, I should be able to liquidate the loan within 4 years and should be able to grow the stock bought to about N90 million in 5 years assuming a return of 20% per annum.

In about 10 year's the bonds and equities should be able to buy a primary residential property for me

Dem no dey teach this one for undergraduate studies o.

chai!

Raider76:
Dangote offers dollar dividends to lure investors to refinery IPO

https://businessday.ng/news/article/dangote-offers-dollar-dividends-to-lure-investors-to-refinery-ipo/

I have been invited to the IPO day, who else is coming?

deathwing:
Real Estate and cashflow in the same sentence? Maybe after many years when your cost of maintenance and Acts of God interventions have been amortised or something (sorry, don't know all the technical jargon). I know maybe it helps when you want to diversify to low risk asset or as leverage for loans etc...but not sure about cash flow. Why would you do that when you have bonds and stuff? Sukuk Bond from Jaiz bank is paying about 20% per year for the next seven years. Which cashflow wan pass that one asides opening a business?

Rent goes up as inflation increases. An apartment whose rent was about 150k in 2007 is now going for N1 million.

So if you don't want to do real estate, invest in stocks with good dividend growth such stocks will beat rent increase I remember when zenith paid dividend of 70k per share but paid dividend of about N4 last year.


Bonds have a higher yield, all my bonds have yields of 20% and above but the coupons won't increase for the next 20 years

There are risk averse investors who don't do equities and real estate, except for their primary residence and they are doing well.


Let us look at this scenario, assuming they had N100 when yield of FGN bond was 20%. They can deside to buy an apartment from LSDPC and get a rental income of N5 million for a start which can increase to N15million in the next 10 years.


Or buy FGN bond with the N100 million and earn N20 million coupon for the next 20 years. I love buying long dated bonds.


Buying a property will include keeping aside about 1% of the property's value or 20% of the rental income generated whichever is higher for the repairs or maintenance of the property.


What a smart bond investor should do, in order to do better than the real estate investor is to spend just 25% of the coupon and reinvest the remaining. That is when he got a coupon of N20 million, he should spend just N5 million and reinvest N15 million.

The reinvestment of the N15 million from the coupon will give him another coupon of N3 million, excluding the original N20 million making a total coupon of N23 million in year 2.

Then spend 25% of the N23 million which is N5.75 million and reinvest N17.25 million buying another bond

By doing this his coupon will increase faster than rent

Gerrard59:
Dem no dey teach this one for undergraduate studies o.

chai!

I learnt it on the street as an Oshodi boy.


By paying 8 years rent upfront, you can't be subjected to rent increase for the next 8 years.


It is also a good deal for the property owner , if he is smart

SpaceX:
I have been invited to the IPO day, who else is coming?

Wetin be my work? I dey follow you my Oga at the top

Agbalowomeri:
Wetin be my work? I dey follow you my Oga at the top

you will be there also, so excited to see you in person, can't wait!

emmanuelewumi:
Rent goes up as inflation increases. An apartment whose rent was about 150k in 2007 is now going for N1 million.

So if you don't want to do real estate, invest in stocks with good dividend growth such stocks will beat rent increase I remember when zenith paid dividend of 70k per share but paid dividend of about N4 last year.


Bonds have a higher yield, all my bonds have yields of 20% and above but the coupons won't increase for the next 20 years

There are risk averse investors who don't do equities and real estate, except for their primary residence and they are doing well.


Let us look at this scenario, assuming they had N100 when yield of FGN bond was 20%. They can deside to buy an apartment from LSDPC and get a rental income of N5 million for a start which can increase to N15million in the next 10 years.


Or buy FGN bond with the N100 million and earn N20 million coupon for the next 20 years. I love buying long dated bonds.


Buying a property will include keeping aside about 1% of the property's value or 20% of the rental income generated whichever is higher for the repairs or maintenance of the property.


What a smart bond investor should do, in order to do better than the real estate investor is to spend just 25% of the coupon and reinvest the remaining. That is when he got a coupon of N20 million, he should spend just N5 million and reinvest N15 million.

The reinvestment of the N15 million from the coupon will give him another coupon of N3 million, excluding the original N20 million making a total coupon of N23 million in year 2.

Then spend 25% of the N23 million which is N5.75 million and reinvest N17.25 million buying another bond

By doing this his coupon will increase faster that rent

Insightful posts.

you said you love buying long dated bonds.
How easy is it if one wants to liquidate before maturity?
I learnt CBN has taken over the exchange from FMDQ.
how liquid is the buy and sell transactions?

chimex38:
Insightful posts.

you said you love buying long dated bonds.
How easy is it if one wants to liquidate before maturity?
I learnt CBN has taken over the exchange from FMDQ.
how liquid is the buy and sell transactions?

I buy through my bank and will then move the investment to CSCS

emmanuelewumi:
Rent goes up as inflation increases. An apartment whose rent was about 150k in 2007 is now going for N1 million.

So if you don't want to do real estate, invest in stocks with good dividend growth such stocks will beat rent increase I remember when zenith paid dividend of 70k per share but paid dividend of about N4 last year.


Bonds have a higher yield, all my bonds have yields of 20% and above but the coupons won't increase for the next 20 years

There are risk averse investors who don't do equities and real estate, except for their primary residence and they are doing well.


Let us look at this scenario, assuming they had N100 when yield of FGN bond was 20%. They can deside to buy an apartment from LSDPC and get a rental income of N5 million for a start which can increase to N15million in the next 10 years.


Or buy FGN bond with the N100 million and earn N20 million coupon for the next 20 years. I love buying long dated bonds.


Buying a property will include keeping aside about 1% of the property's value or 20% of the rental income generated whichever is higher for the repairs or maintenance of the property.


What a smart bond investor should do, in order to do better than the real estate investor is to spend just 25% of the coupon and reinvest the remaining. That is when he got a coupon of N20 million, he should spend just N5 million and reinvest N15 million.

The reinvestment of the N15 million from the coupon will give him another coupon of N3 million, excluding the original N20 million making a total coupon of N23 million in year 2.

Then spend 25% of the N23 million which is N5.75 million and reinvest N17.25 million buying another bond

By doing this his coupon will increase faster that rent

You say u love long dated bond because it is 20% u got now.Tell me how the one I bought 3 yrs at 13% is good thing now.This is 10yrs bond.Then I thought it was wise decision but now I regret it

Streetinvestor2:
You say u love long dated bond because it is 20% u got now.Tell me how the one I bought 3 yrs at 13% is good thing now.This is 10yrs bond

Surprised you got 13% 3 years ago. Where did you buy the bond? You ought to have over 18% yield 3 years ago


Below are the yields I got from my bank yesterday, yields are between 15% and 17%

emmanuelewumi:
That might be FGN savings bond. Surprised you got 13% 3 years ago. Where did you buy the bond?


Below are the yields I got from my bank yesterday, yields are between 15% and 17%

It is not savings bond.The savings bond is usually 2 or 3 yrs.
It was sukuk bond 2021/2022

Streetinvestor2:
It is not savings bond.The savings bond is usually 2 or 3 yrs.
It is sukuk bond

I was referring to FGN bond and not Sukuk.

Can you share evidence of the offer. 13% about 3 years ago get as e be

emmanuelewumi:
I was referring to FGN bond and not Sukuk.

Can you share evidence of the offer. 13% about 3 years ago get as e be

MPR was 11% 3 years ago.
Why does 13% feel strange?

emmanuelewumi:
I was referring to FGN bond and not Sukuk.

Can you share evidence of the offer. 13% about 3 years ago get as e be

If u had 13% I don't think u go like long time bond like this oh

awesomeJ:
MPR was 11% 3 years ago.
Why does 13% feel strange?

I am trying to get the exact date I bought 2050 bond at a yield of over 20%


Current MPR is 27% and average yield on a 10 year bond is less than 20%

emmanuelewumi:
I am trying to get the exact date I bought 2050 bond at a yield of over 20%


Current MPR is 27% and average yield on a 10 year bond is less than 20%

Bought in 2024 after booking profit and later did a portfolio rebalancing.

I actually bought 3 different bonds

emmanuelewumi:
Bought in 2024 after booking profit and later did a portfolio rebalancing.

I actually bought 3 different bonds

But your broker referred to your bond hear as sukuk. IF so,what trench was it and what was the offer. Like the one I bought in 2021 was 13%

Streetinvestor2:
But your broker referred to your bond hear as sukuk. IF so,what trench was it and what was the offer. Like the one I bought in 2021 was 13%

Read well, I will send the full message. It was a general statement for the migration of fixed income investments, FGN bonds, corporate bonds, state bonds and Sukuk

emmanuelewumi:
I am trying to get the exact date I bought 2050 bond at a yield of over 20%


Current MPR is 27% and average yield on a 10 year bond is less than 20%

So, imagine what yields were when MPR was at 11%
Your bonds are probably 2049 bonds issued in 2019. That's the longest dated bond I know of.

awesomeJ:
So, imagine what yields were when MPR was at 11%
Your bonds are probably 2049 bonds issued in 2019. That's the longest dated bond I know of.

We have March 2050

emmanuelewumi:
We have March 2050

The coupon is 12.98%, but I bought it at a discount at N70 or thereabout thereby increasing my yield and I will sell at N100 when it matures

emmanuelewumi:
The coupon is 12.98%, but I bought it at a discount at N70 or thereabout thereby increasing my yield and I will sell at N100 when it matures

So you shouldn't have disputed the 13% yield mentioned.

Cos you almost made it seem like it was a false claim.

When the instrument was originally issued in 2020, it bore a 12.98% coupon despite it being the longest possible tenor of 30 years.

You bought either at secondary market or as a reopening issue 4 years later when prevailing 364-day yield were even close to 30%.

That's the full picture sir.

@emmanuelewumi

PETERiCHY:
That's the reason we advice SMART TRADERS to INVEST ONLY SPECULATIVE FUND if not stick with the FUNDAMENTALLY Sound ones .

Last month some of US got sizeable units of JAPAULGOLD @t circa #2.06 and today we are SITTING on DECENT PAPER PROFIT above all they are planning to raise FUND of which their RIGHT ISSUE is PROJECTED take place at circa #5.00k


BARGAIN HUNTERS TAKE NOTE!

SOFT REMINDER 🎗️

Let EXPECT JAPAULGOLD Right Issue @ circa #5:00k


BARGAIN HUNTERS TAKE NOTE!

awesomeJ:
When the instrument was originally issued in 2020, it bore a 12.98% coupon despite it being the longest possible tenor of 30 years.

You bought either at secondary market or as a reopening issue 4 years later when prevailing 364-day yield were even close to 30%.

That's the full picture sir.

@emmanuelewumi

That was why I said I bought at a discount. Buying a bond at a premium or a discount is determined by the prevailing interest rate and yield of bonds

https://www.youtube.com/watch?v=3W-a1qAbkkA

A few stocks I'd be watching closely in today's trading session on the NGX.

awesomeJ:
So you shouldn't have disputed the 13% yield mentioned.

Cos you almost made it seem like it was a false claim.

I disputed because I was not into fixed income investments then, I started buying were yields were over 20%.



The only one I got at a yield of 18% which was bought this years, when I sold some Presco shares

https://open.spotify.com/episode/6UnxdcQnd7Aci1xSjPCyAg

Premarket for today in pidgin English

I'm speaking from the future prospects of BioFuel...

nosa2:
Ok na. Try and do some research into the palm oil industry in Nigeria. You'll see the landmines that scare me

KarlTom:
I'm speaking from the future prospects of BioFuel...

Have you done the research I suggested?

I already told you the price range. Can't keep repeating same thing.. I said there's pdf comprehensive prospectus with analysis for each of the 3 properties. Can't post pdf here. It's part of the materials I said are available

If you want the materials I can send to you..
That's the best I can do o

emmanuelewumi:
What is the price range of those properties and the average rental income generated from them