megacontrol:
interesting that you would give up your real estate project for TBill. i still think the returns don't compare, all things being equal.

if you don't mind, i would like to discuss this your building approval experience with you a little. assuming it's in Lagos, which LGA did this happen? how long did it take before you gave up? how much extra were they demanding?
Also i may be interested in discussing your planned sale. we can take all these offline if you prefer.

Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

Oh i see... Uyo. Ok thanks.

GODAKPAN:


Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

GODAKPAN:



it didn't sail through. sometimes in secondary market while processing your tbills, another fast fingers from another branch might have cleared what u wanted.

I thought as much. I have a date with them tomorrow morning.. thank you boss

C4Ltd:


sorry but you mean "having said that" abi? just asking

Oh yes. Thanks for the correction. I will modify it accordingly.

megacontrol:
interesting that you would give up your real estate project for TBill. i still think the returns don't compare, all things being equal.

if you don't mind, i would like to discuss this your building approval experience with you a little. assuming it's in Lagos, which LGA did this happen? how long did it take before you gave up? how much extra were they demanding?
Also i may be interested in discussing your planned sale. we can take all these offline if you prefer.

The main question is: "are all things always equal"?
Real Estate business is a lot riskier than Treasury Bills which is 99.99 risk free

C505:
Hello Mr TONY56, you seem well acquainted with this governmental bonds. Wanted to know your stance in this.
I went to AXA MANSARD an affiliate of GTB to buy TB recently. After so much lecturing, the lady behind the desk advised me to opt for money market ATM instead of TB since MM has a higher rate. It was about 15.84% against TB at 13.72 both for a tenor of 364 days. Difference is MM has its profit rate calculated based on change everyday unlike TB if the rate is 13% and you buy today, that's the rate your interest will be calculated for the tenor.
Although I bought into the MM after she convinced me that she'll monitor the TB rates so that if it increases above the MM, I can move my funds to TB.

What most people appear not to understand is that Money Market is largely Treasury Bills and stock market driven because that's where Money Market Operators invest their funds largely.

Having said that, Treasury Bills bought at a particular rate does not change throughout the tenor but the rate of MM today can change any day as it fluctuates. So if you are told that MM rate today is 18%, the factors that shot it up today MAY bring it down drastically tomorrow.

Tell me, can those who bought MM last year July when TB was 18 5% get better returns than those of us who opted for NTB same time at maturity? The answer is No because NTB rates have been heading south wards since then and the slide is very likely to continue further. Similarly, those who bought NTB now at 13.5% MAY not get better returns at maturity than those who invest in MM now IF and only IF NTB rates and stock market continues to improve steadily.

In other words, MM though good, is like a gamble (though you are not likely to lose your capital) while NTB is not because as you're locking your money in, you know what you're going to end up with and you get your interest upfront which can equally be re-invested for better ROI (return on investment)

You see, it's a big credit to the lady in the bank who was able to convince you to go for MM because the bank stands to gain from it and bet you, the lady is not likely to ask you to opt out for NTB any day. All she will be telling you is "don't be in a haste, it's still going to out perform the NTB" even if it's obvious that you should move over. Also, remember that MM is not tax free and the bank too collects certain percentage as their part of their profit. Another minus for MM is that if your bank for any reason should go under, your funds could equally be affected but if it's NTB, your investments are safe because that investment is with the Federal government of Nigeria and not your bank.

The choice is however yours and all I have written is not an expert opinion but the way I see it and that's "MY STANCE" as requested by you.

GODAKPAN:


Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

Oh!!!. God bless you with your thoughts and thinking.
What I like most in your response is "TBills hides the source of your income, making you live a normal life without criminal elements courting you"

... and a lot more rewarding too in most cases if you're in the right location and know how to operate.
Its down to your perspective (a lot riskier vs a lot more ROI), and of cause your tolerance level.

His made a good call going by his example in Uyo since no much difference in ROI between both investments but I'm sure if it were Lagos the story will be different. In fact he wont be selling, at least not at cost price because the returns from the safe Tbills will never come close to what the "risky" property will bring.

TONY56:


The main question is: "are all things always equal"?
Real Estate business is a lot riskier than Treasury Bills which is 99.99 risk free

Morning
Please does anyone here invest in CORONATION MERCHANT bank. I heard they are offering 18%
Just need confirmation on this

Amypriti:
Morning
Please does anyone here invest in CORONATION MERCHANT bank. I heard they are offering 18%
Just need confirmation on this

18% for what?
Savings?
Fixed Deposits?
Treasury Bills?
Mutual Trust?

Whatever it is, is the 18% clearly stated unambiguously in their terms and no caveat is attached

Mutual Funds

TONY56:


18% for what?
Savings?
Fixed Deposits?
Treasury Bills?
Mutual Trust?

Whatever it is, is the 18% clearly stated unambiguously in their terms and no caveat is attached

Awesome.

Please who is going for social media week this month? This event is going to teach us the best investment strategies to avoid falling into fraud. Check it out: http:///SMW_Nairaland

Finally I chop my first money from TB after a successful 182 days tenure I got alert from my bank that it will mature on the 15th. Thanks to everyone here that has been helping and the government for at least allowing this free money

My question is do I need to go to the bank for any documentation or relax while they pay the money?

When is the next TB?

BIG THANKS!!

Amypriti:
Mutual Funds

It's good IF and only IF the 18% is very clearly stated in writing and unambiguously without any caveat as I stated earlier. If not, it's a ploy to lure you into it. Pls don't ever accept any verbal offer.

GODAKPAN:


Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

Nice one. This is true.

When i went home last year, my sisters were 'abusing' me that one boy has put up a building that is being rented while i have not done that. I just laugh at them and asked if they knew the source of the money i used to finance the burial ceremonies they all came for without any of them contributing a penny or me asking them to contribute a penny or me taxing their husbands to contribute as most people do.

I somehow now seems to understand why landlords especially those in Lagos seems to be broke always even though they collect rent. Everybody knows when you collect the rent and once that happens, friends, families and hangers-on swoop on you and before you know it, the money is finished. That is when it dawns on you that it was actually one year rent you collected from the tenant and not one month. You go then begin look calendar on a daily basis and planning an increment.

okochaik:
Finally I chop my first money from TB after a successful 182 days tenure I got alert from my bank that it will mature on the 15th. Thanks to everyone here that has been helping and the government for at least allowing this free money

My question is do I need to go to the bank for any documentation or relax while they pay the money?

When is the next TB?

BIG THANKS!!

Go to bank to do what?
You will simply get the alert unfailingly on that date.
The next aution should be on Wednesday 14th February which is Valentine's and Ash Wednesday day and it's the proceeds of the auction on that day that will be used to pay yours and others on Thursday 15th.

Congratulations!!!

T-Bills PMA Rates to Decline This Week as N90b Bills Mature
**Lending Rates to Slightly Rise
https://www.businesspost.ng/2018/02/12/t-bills-pma-rates-decline-week-n90b-bills-mature/

megacontrol:
... and a lot more rewarding too in most cases if you're in the right location and know how to operate.
Its down to your perspective (a lot riskier vs a lot more ROI), and of cause your tolerance level.

His made a good call going by his example in Uyo since no much difference in ROI between both investments but I'm sure if it were Lagos the story will be different. In fact he wont be selling, at least not at cost price because the returns from the safe Tbills will never come close to what the "risky" property will bring.

GODAKPAN:


Am fine here, the site is in uyo
I did the drawings in lagos and its a practice the engrs at the office frown at. they prefer you domesticate everything with them. I waited for about 16 months. had a plan of building within 24 months, so when they wasted 16 months, they were taking too much. I have set my retirement so cant afford delays. on profitability: I started tbills when it was above 18%, I needed 50m to finish a 53 rooms self content, at max, I will be making a yearly return of 5.3m but if I invested the 50m in tbills at the 18%, I was looking at 9m without quarrel with site engr, uyo capital city authority, tenants and the property must be maintained while I don't need to maintain my tbills. even at 10% I will be making equivalent of the building rent. tbills also hides the source of your income, making you live a normal low life without criminal elements courting you. unfortunately nobody is willing to buy the properties at even their cost price.

Rental yields aren't usually up to 5% even in the highbrow areas of Lagos (I don't know of commercial real estate). Plus, you have to make provisons for renovation which can be high or low depending on the kind of tenant you have. When the tenant decides not to pay rent you'll have incur extra expenses. All these reduce your rental yield.

I know someone will talk about capital appreciation but, if you're looking at rental income, capital appreciation is moot (IMO).

TONY56:



Go to bank to do what?
You will simply get the alert unfailingly on that date.
The next aution should be on Wednesday 14th February which is Valentine's and Ash Wednesday day and it's the proceeds of the auction on that day that will be used to pay yours and others on Thursday 15th.

Congratulations!!!

Thanks for the info bro. This means that I won't be able to reinvest soon enough. After 14th Auction do you know when next another one will be?

But someone talked about inflation affecting Tbills in the long run as compared to real estate. Can anyone explain better please.

TONY56:



What most people appear not to understand is that Money Market is largely Treasury Bills and stock market driven because that's where Money Market Operators invest their funds largely.

Having said that, Treasury Bills bought at a particular rate does not change throughout the tenor but the rate of MM today can change any day as it fluctuates. So if you are told that MM rate today is 18%, the factors that shot it up today MAY bring it down drastically tomorrow.

Tell me, can those who bought MM last year July when TB was 18 5% get better returns than those of us who opted for NTB same time at maturity? The answer is No because NTB rates have been heading south wards since then and the slide is very likely to continue further. Similarly, those who bought NTB now at 13.5% MAY not get better returns at maturity than those who invest in MM now IF and only IF NTB rates and stock market continues to improve steadily.

In other words, MM though good, is like a gamble (though you are not likely to lose your capital) while NTB is not because as you're locking your money in, you know what you're going to end up with and you get your interest upfront which can equally be re-invested for better ROI (return on investment)

You see, it's a big credit to the lady in the bank who was able to convince you to go for MM because the bank stands to gain from it and bet you, the lady is not likely to ask you to opt out for NTB any day. All she will be telling you is "don't be in a haste, it's still going to out perform the NTB" even if it's obvious that you should move over. Also, remember that MM is not tax free and the bank too collects certain percentage as their part of their profit. Another minus for MM is that if your bank for any reason should go under, your funds could equally be affected but if it's NTB, your investments are safe because that investment is with the Federal government of Nigeria and not your bank.

The choice is however yours and all I have written is not an expert opinion but the way I see it and that's "MY STANCE" as requested by you.

Thanks you for the light. Actually I have a target to meet by Feb ending but as at the 10th of this month, my target was like 3\4 up so while I was holding up to meet the the last quarter, she advised me hence to invest the 3\4 in MM while waiting for the last 1/4 so that by month end, I'd have had a ROI for 2 weeks instead of dipping my hands into the cash and then I can move the whole sum plus ROI to TB.
Apparently with what you said, I'll have to move my funds to TB as soon as the last quarter takes the front row ignoring her "I'll monitor the rise and fall of TB for you to know when its appropriate to move your funds."
Thank you so much MR Tony and God bless your wisdom.
Please can you kindly mail me your number at chux505@yahoo.com? There's an issue I'll like to discuss with you in private if it's not going to be a problem to you.

Good afternoon, please which bank is best for treasury bills?

C505:


Thanks you for the light. Actually I have a target to meet by Feb ending but as at the 10th of this month, my target was like 3\4 up so while I was holding up to meet the the last quarter, she advised me hence to invest the 3\4 in MM while waiting for the last 1/4 so that by month end, I'd have had a ROI for 2 weeks instead of dipping my hands into the cash and then I can move the whole sum plus ROI to TB.
Apparently with what you said, I'll have to move my funds to TB as soon as the last quarter takes the front row ignoring her "I'll monitor the rise and fall of TB for you to know when its appropriate to move your funds."
Thank you so much MR Tony and God bless your wisdom.
Please can you kindly mail me your number at chux505@yahoo.com? There's an issue I'll like to discuss with you in private if it's not going to be a problem to you.

No please.
I prefer that we discuss on this thread so that everyone can benefit and probably add their voices too. If its an issue that can't be discussed here, then l am sorry that I won't be part of it.

TONY56:


No please.
I prefer that we discuss on this thread so that everyone can benefit and probably add their voices too. If its an issue that can't be discussed here, then l am sorry that I won't be part of it.

I admire your POV. It's actually personal and has nothing to do with the purpose of this thread.
I might have to figure it out in the end though.
Much appreciated Mr Tony and God bless

C505:

I admire your POV. It's actually personal and has nothing to do with the purpose of this thread.
I might have to figure it out in the end though.
Much appreciated Mr Tony and God bless

Thanks for your understanding.

olujaidi:







Rental yields aren't usually up to 5% even in the highbrow areas of Lagos (I don't know of commercial real estate). Plus, you have to make provisons for renovation which can be high or low depending on the kind of tenant you have. When the tenant decides not to pay rent you'll have incur extra expenses. All these reduce your rental yield.

I know someone will talk about capital appreciation but, if you're looking at rental income, capital appreciation is moot (IMO).

Its usually a waste of time trying to compare returns in various assets classes. Its like comparing apples with Agbalumos.

I always advise all to keep a diversified portfolio of the various assets classes; Treasury Bills, Stocks, Real estate etc..

while some are more liquid than the other, others give far higher returns with the higher risk being take there.

I usually tell pensioners never to go into real estate (rentals) as a source of their daily liquid living allowances. Most of times they only end up selling those assets far lower than they invested in acquiring them.

Treasury Bills is the perfect investment for anyone looking for liquidity and Very low risk! Note however that liquidating treasury bills before its maturity still throws in a diff kind of challenge

feelamong:


Its usually a waste of time trying to compare returns in various assets classes. Its like comparing apples with Agbalumos.

I always advise all to keep a diversified portfolio of the various assets classes; Treasury Bills, Stocks, Real estate etc..

while some are more liquid than the other, others give far higher returns with the higher risk being take there.

I usually tell pensioners never to go into real estate (rentals) as a source of their daily liquid living allowances. Most of times they only end up selling those assets far lower than they invested in acquiring them.

Treasury Bills is the perfect investment for anyone looking for liquidity and Very low risk! Note however that liquidating treasury bills before its maturity still throws in a diff kind of challenge

Challenge like what sir ?

ihedioramma:
Challenge like what sir ?

In liquidating treasury bills before its maturity, you will need to sell into the secondary market..

as it is the minimum trading volume in the secondary market is N250M...

this is why the banks and discount houses will only discount to you if they want to buy it off you or have a customer of theirs that is willing to buy it from you.

also you will sell at the prevailing rate!

if you bought low and the yields go up..you will definitely be selling at a loss!

feelamong:


In liquidating treasury bills before its maturity, you will need to sell into the secondary market..

as it is the minimum trading volume in the secondary market is N250M...

this is why the banks and discount houses will only discount to you if they want to buy it off you or have a customer of theirs that is willing to buy it from you.

also you will sell at the prevailing rate!

if you bought low and the yields go up..you will definitely be selling at a loss!

But nothing will happen to the capital?

ihedioramma:
But nothing will happen to the capital?

Your capital is guaranteed by the Full weight of the Federal Government of Nigeria

feelamong:


Your capital is guaranteed by the Full weight of the Federal Government of Nigeria

Best investment .

feelamong:


Its usually a waste of time trying to compare returns in various assets classes. Its like comparing apples with Agbalumos.

I don't entirely agree with this assertion. This is because investment options are not always in the same class. Its not always property investment in Lekki vs Magodo or NTB vs CP. Sometimes, it's across asset classes. Which is why i alluded to a risk adjusted net return.

Feel free to criticize