₦airaland Forum

Could you please clarify the package you’re being offered?

2m is quite a meager amount to secure a tangibly genuine piece of property in Lagos, except you’re considering a lease option for a self-con.

Satoshi2019:
Good day my ogas. Pls kindly weigh in on dis

I have 2m from my matured treasury bills. Since rates have gone south I decided to acquire a house. A Real estate company here on the Island is offering a juicy package. But I fear future service charge.


Which is better please economically ... Living in a serviced estate OR buying /building elsewhere. Note I'm a hustler not a High Income Earner

Cc Oga Emma Oga Ahiboilandgas

Well, my experience differs from this.

Sending to United Capital’s account from FCMB has been free all time. I worry less on the intermediary bank.

SaintUlot:
His money is in usd already, he was told even if he is sending from fcmb it has to be transferred. Funds will be transferred to an intermediary bank abroad before it hits the fcmb account. Sending from fcmb or from another bank account doesn't really count because it is the same procedure.

Your friend needs to do some analyses and query his motivation for foreign currency investment.

Since the funds is already in Dollar (dom account), he can manage the little monthly interest off it.

If the funds is in Naira, let him consider what he stands to loose if devaluation happens.

Also, if it’s Naira, he can open a Dom account with the corresponding bank he wants to invest in, that way there won’t be any transfer charges. E.G, United Capital Eurobond uses FCMB dom account, he can open a dom account with FCMB and proceed to invest with them.

The key is to research.

SaintUlot:
The cost of making transfer for eurobond/dollar investment is on the high side, imagine my friend was billed over 110k if he wants to transfer 30kusd, that's around 310usd. He had to rethink on whether to invest or not. A transfer that would have cost 52ngn if it were to be naira mmf or treasury bills.

Think logically, Invest wisely.

Since 1990, the Naira has depreciated against the Dollar by an average of 13.5% per annum.

The Naira traded against the Dollar for N7.90 in 1990. Thirty years after (2020), it’s traded for N360 per Dollar.

Run the calculations and compound the difference.

It’s obvious that foreign currency investments trump whatever investments/profit one is making in Nigeria, in the long term.

Nigeria’s economy has no base, clarity, consistency and strategy.

Not to create any panic, it’s better to diversify one’s portfolio to foreign currency.

tunene66:
I have studied the Naira vs dollar chart and notice a tendency. Once in every few years, the Naira gets devalued, after which it remains very stable for a few years. Also, just near the period after the devaluation, there is ample investment opportunities with great ROI to prevent flight capital. (e.g rate for T-bills were 17-20% immediately after the devaluation in 2014/2015).

Food for thought

They FCMB Dollar account.

olystic:
Hello, please can you let me know which bank United Capital uses for their Eurobond. Because I have Access band Dom and Stanbic Dom. I would not like to go open another bank's Dom. I also have GTB euro Dom. U can imagine.

United Capital said cash deposit doesn’t work for them, only transfer. They use FCMB Dollar account.

I guess it’s same with most platforms. Please confirm from your financial coy.

Best!

billtommy:
Which bank did you use?

I'm looking at the possibility of making cash deposit into the provided account details. It should save some costs. Although I haven't found out if its possible.

FGN Savings Bond rates via Morgan Capital.

2-Year FGN Savings Bond due February 12, 2022: 5.91% per annum


3-Year FGN Savings Bond due February 12, 2023: 6.91% per annum

Oh! I see...Poor them.

You can do some value analyses to be sure the investment would be worth the transfer or otherwise.

All the best.

billtommy:
But the Correspondent bank account provided by fbn quest is that of standard chartered in New york. When i asked, i was told i would be charged for making a transfer into a standard chartered account

5% transfer fee from where to where?

If you run a dollar account with FBN, there shouldn’t be a transfer fee sending dollar to another FBN domiciled dollar account.

I opened Eurobond account with United Capital, and thankfully, their bank corresponded with my dollar account, so no need for transfer fee.

billtommy:
My account got ready last week, but I am yet to fund it. I can't bear the 5% transfer cost. I'm looking out for alternatives

Nice thread.

Please continue.

JFT24:
[b]An important note, do not book a flight to travel on the same day you have interview, Proposal defence, or any important event that may result in regret if you fail to attend it.

It's safe to always book a flight atleast a day ahead of your important program.
Also note, do not check-in any vital documents you cannot afford to loose with your bag. Always carry them onboard with you.
[\b]

Just started my adventure into the stock market and I’m impressed by the growth of WAPCO shares.

Having some negative reservations and speculations about banking sector shares.

Which and which would you advise?

Mcy56:
Small pull back witnessed in Wapco around 17.40 now...........retracing its stepping ------up again.

I see! Thanks for sharing.

I practically missed the 180 days minimum holding period...Guess I have some amendments to make.

If that’s it, then it’s slightly better than United Capital’s offer.

And yes, you won’t be penalised for withdrawal after the 180 days.

Cheers!

billtommy:
According to what I was told about fbn eurobond, minimum holding period is 6 months. But the bond tenor is 3-5 years.....I don't think it should attract any penalty of you take your money in let's say a year after investing. Anybody that is familiar with this should please enlighten us.

This is my reality with a twist.

FBN offers about 9.4% on their Eurobond with a lock in period of 3-5years and minimum deposit of $2,500 but United Capital’s rate is 8% with a lock in period of 30 days at $1,000 entry.

FBN would have been sweet but thinking of the duration and the realities that unfold in this economy, I opted for the United Capital deal.

While expecting the best from life, it’s really good to prepare for the worst as well, that’s why diversification is essential for any diligent mind.

God go help us all.

zamirikpo:
U r just in my head, TB was perfect for me. And with what is happening around naija I don't see myself tying down huge funds for 3--5years, money I may need anytime from now.

My budget is done every year. I sha hope thing improve before July.