awesomeJ:

You can never go wrong with diversification.
Some who know their onions in real estate, could easily make double the returns on T-bills.

As per the issue with holding naira assets, when I start seeing the signs of an imminent currency crisis. I'll switch to eurobonds ASAP. 6% guaranteed with a potential for much more.
For now, there's some comfort.

zamirikpo:


Pls don't forget to update us when u start seeing signs of an imminent currency crisis cos I don't know how to check for them......

Then for eurobonds how is it done......

queengift:
Hello family, am new here, if I invest 100k on tills how much will I get in returns, please help a sister I need clarification

joseph1013:

Is there any thread I can get more information about Eurobond? I'm interested.

zamirikpo:


Pls don't forget to update us when u start seeing signs of an imminent currency crisis cos I don't know how to check for them......

Then for eurobonds how is it done......

Desanta:


Yes.

fyneIjay:

Thank you.
I will like to seek the house opinion on something concerning investment.
We have a house somewhere, which is given out to tenants. After the first payment, they always find it hard to follow up promptly in paying subsequent rent. My brother has been suggesting for some time to sell off the house and invest the proceed in Treasury bills or do fixed deposits with it. That it will still give us more than the income we are currently getting from renting it out and the capital will still be intact.
I need opinion and advice on this. (if sold, we could be realizing 25M or more from it and 20M will be invested, at least 10M in TB)

awesomeJ:

You can never go wrong with diversification.
Some who know their onions in real estate, could easily make double the returns on T-bills.

As per the issue with holding naira assets, when I start seeing the signs of an imminent currency crisis. I'll switch to eurobonds ASAP. 6% guaranteed with a potential for much more.
For now, there's some comfort.

Calebbold:


Please, how does devaluation of the naira reduces the value of one's investment in TB or fgn bond? Is it that if you invested 10m initially for example, ur capital automatically becomes less due to devaluation?

Donbrig:


Real estate is the MOTHER of all investments, you can control or dictate your profits, but location is everything in real estate. If you cannot buy a land in a very good location, don't think of building a commercial house on it or for rents. And it is always good to get a good lawyer to ensure your tenants sign a memorandum of understanding in case they cannot pay their rents when due. No doubt there are lots of challenges in real estate, but it is always good to diversify.

awesomeJ:
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The major reason why it's so is cos the bulk of the items we consume come directly or indirectly from the international markets, and are priced in USD.

When the dollar exchanged for 199, 10m was $50,000.00
Now that it trades at 360, thesame 10m is less than $28,000

There wouldn't have been any problem if your Honda Accord, LED TV, fuel, wheat or raw sugar were all sourced locally, but since they rather come from the international markets, the implication is that the 10m that could buy 2 units of the Accord sedan just some few months back, can now barely buy just 1.

priscai:
FBN LAGOS TB 11% @ 191 days. Ecobank fixed deposit is offering 11% please for 365 days.

Please which of them is more viable.
Kindly help.

awesomeJ:

Considering the 10% withholding tax, the FD's return is effectively 9.9% p.a

Considering the upfront interest payment on the T-bills, the returns is 12.36% p.a and 11.68% for 191 days.

So, obviously, 11% may not always be 11%.

priscai:


Thank u so much for this info.

Comeandcollect:
The advantage of T-Bils over Real Estate v The advantage of Real Estate over T-bills for small/medium/high scale investors


T-bills v Real-Estate
1. T-bills yields upfront interest i.e you get your interest payment straight away and use it for other purposes.

2. It is guaranteed 99% you will get your capital back upon maturity.

3. The period of interest payment is fixed i.e if your interest at purchase is 15 % , it stays the same.

4. You tend to have a physical asset i.e a house whatever happens and be known as landlord.

Real Estate v T-Bills
1. The risk of buying a genuine plot of land to develop without being duped by dubious Nigerians is 50%.

2. The estimated purchase price of a piece of land increases drastically after paying fees, entitlements, commissions etc.

3. On average it takes two years to develop a piece of land to living standard in most parts of Nigeria, within two years T-bills investment for any investment must have yielded a lot money.

4. Problematic tenants that owe you rent after paying two years advance payments destroys the initial aim.

5. Your only asset is your capital.

awesomeJ:

Depends,
Like ahiboilandgas stated, if your location still has some potential developments in the near future, there could be huge capital gains. But for places already developed, say gra, the likelihood of capital gains is slim.

What I consider to be the greater downside is the fact that it could be difficult to hold on to cash. I mean there'll be tendency to just spend, especially since it's family funds as you have stated.

It may be better to buy 10-30year bond, or stocks when prices crash to push dividend yields to c.15%. You'll get annual dividend payments, and there could be capital gains that'll even double your capital.

You guys will have steady income to even pass down to the next generation.

peacengine:


Good morn Chairman, for long term investors is bond better than real estate? Is the annual dividend paid in cash and how does capital gains work?

ahiboilandgas:
they both good...have a mix of the 2 ...real estate then to battle inflation and devaluation better and can return some very crazy percentage ten fold more than any security

ahiboilandgas:
they both good...have a mix of the 2 ...real estate then to battle inflation and devaluation better and can return some very crazy percentage ten fold more than any security

ahiboilandgas:
I bought a land for 720 k in 2003 in a developing area used around 150 k to fence and put gate ....i sold it to 11 m naira in 2014 ....my coinvestor bought 10 for 7 m then and sold for 120 m million naira....our 3 friend bought for 800 k in 2004 used 7 m to build a deplux on it later in 2015 sold it for 35 m naira while the 4 guy used around 15 m to build 4 unit of he renting it for 1.5 m annually

SirJohn:


Bros which part of Nigeria did your friend build duplex for 7m in 2015?