₦airaland Forum

dake40:
How about reinvesting the fund in Business with strong backup?. Afterall, he worked before he could have such amount of money to buy a home in the first place.. I understand your point about having roof over one's head.. He could get a roof under his head via renting too and reinvest his capital.

The OP is only coming from an angle of "JOURNEY TO SUCCESS"

Well, he could have inherited the money....lol.
Yeah, I get your point.

isthatso:
In case you missed it, my message is be wary of investing in all Naira demoninated assets, unless it is giving you returns like 50% a yea which are usually scams unless it is a business you are doing yourselfr. If you are investing in t bills at 12% and inflation is 12-15% you are losing money....even before the inevitable Naira depreciation

Yes agreed, but I wouldn't call buying a property which I intend to live in an investment. It is simply a means to meet a basic need of shelter and have some security.

dake40:
If he buys/builds a home he'd live in for 2/3 years..

1..He will need to pay for maintenance.
2...He'd still be paying for rent where ever he travels to.


You might want to read this to understand better...

If mr A builds/buys a house for 20m and he knew he'd be living for a very time

1. it's an investment that would take him 20 years or more to payback
2. This Will safe him money of rents of 20m for 20 years years. ( If he pays 1m annualy for rents.. Dont forget that cost of rents might also go up.
3. Will likely spend money on Maintenance of the house.
4. House keeps same design for ever.

....If mr B has 20m but decided to invest it. In maybe[b] treasury bills with 13 percent yearly returns. [/b]

1. He gets 2.6m yearly
2. He pockets 1.6M yearly as profit (minus 1m yearly rent)
3. He could reinvest the 1.6m in business or another investment (which would make him richer) or probably bought a land for 1.6m, which he might sell for X400 higher in years. Dont forget Land No or less maintenance.
4. He does not pay any maintenance fee for X years if he had bought a home(amount in millions)
5. he gets the chance to choose a modern design he would love to buy/build a home

Thanks for the explanation, I see your point. But one thing is all these figures are simply projections. As we saw this week, TBills are already on a downward spiral. Also, the maintenance cost people have kept mentioning is really not as significant as that.

Sham pastor. Always the common denominator in sex-related cases. A supposed pastor.

His followers will come and flood here soon. Mschew.

TroubleMaker47:
Actually % matters!
5% and 1% irrespective of their individual population would never bear the same risk!
The chances of getting infected in a region with 5% prevelance would always be 5X the chance of getting infected in a reguon of just 1%!!!

I never said percentages do not matter, I said percentages do not tell the whole story.

BluntBoy:
This is where many of you get it wrong. You people think researches cover everyone in a population, but statistics has made up techniques to address differences in population by creating a sample size to represent the population of interest.

If sample size is 100 for Akwa Ibom, it would be 100 for Lagos as well. So, the percentages tell the whole story as far as the number of people sampled is concerned.

The prevalence rate of HIV in a sample size of a 100 people in Akwa Ibom is higher than in Lagos with the same sample size. So, there is a higher prevalence rate of HIV in Akwa Ibom than in Lagos.

But it is not mentioned anywhere in the post that that was what was done, which is my point - you can't just quote percentages without providing the context.

isthatso:
my father bought land in what was a prime area 35 yrs ago Today that property is worth 1000 more in Naira terms than what he paid but if you convert to dollars today he would have been better off converting the money to dollars and just putting the money in a savings account and allowing the interest to compound. The value of the land today 35 yrs later and the value of the savings account would be the same.

Like I said it was a prime property but Nigeria is a lawless country and desire able places can become undesirable in 10 years with the haphazard way we do things. Just look at Festac.

I am not saying all properties are like this but I just gave this example to highlight that roperty is like any other asset, some will appreciate, some won’t. There is no Decree that every property will appreciate or hold real value over time.

I totally agree with your point on investing in property or stocks in Nigeria can be risky because we do not have a structured system.

What you have not factored though is the income (rent) he got from the property OR the rent it saved him from paying elsewhere over the 35 years.

isthatso:
Yes that is true but if you look at the history of the Nigeria exchange rate since 1970, you will notice the Naira always depreciates. There has never been a period when Naira appreciates. In Naira terms you may have more Naira over time, but what is the real value of that Naira? Every Naira asset losses real value over time. Except the appreciation of that asset exceeds the long term depreciation of the Naira....which will continue to occur. Like I said you could have bought 8 brand new Toyota corollas in 2015, if you sell that house today, you can only buy 2. If you have 4 children and bought a property for 40m thinking I will sell this property and use it to send my kids to school abroad, you have failed, at best that property will only pay for 2 children’s school fees. In real terms your house has lost value. In real terms the house has not protected your wealth.

Some properties keep value more than others or depreciate less than others, so when it comes to property, the key is location!!!!

Be wary about investing in Naira assets property and stocks because in most cases the devaluation or depreciation in the Naira will erode any gains in price.

The more reason a person should at least have a roof over their house (and save the recurring expense of rent), as the 40m he is investing in TBills etc is depreciating every year in actual terms, not to mention Nigeria's high inflation rate.

khalids:
Agreed, let's not forget that he has 40M, will he just sit there and be chopping the money....he has capital to fund and resolve his challenges....
And besides anyone wise enough to see this benefit would not have been playing around with the interest that the 40M had been generating for them

And if he feels he can't find any investment options, which is most unlikely...he can then go ahead and buy a house....

Whichever way you cut it, he is till in a far better financial situation than someone who just ploughed the 40m into one building.

No one is saying he should plough the 40m into a house foolishly. It's all about making a balanced decision. He can build a house below 40m and invest the rest. My point is investments are not guaranteed, so you shouldn't put all your income into it. Life is all about balance.

dake40:
Bonds, Stocks etc will surface...

Treasury bill is not the only investment plan that gives good returns..

You are not getting my point.
Bonds historically are low returns, stocks which return more over the long term go up and down AND you can lose money as well.
A roof over your head is guaranteed. Investments are NOT guaranteed.

Percentages do not tell the whole story.

1% of 1,0000,000 (10,000) is larger than 5% of 10000 (500). What is the population of these states and what is the base figure from which the percentages were calculated.

Forgive him and sleep on empty stomachs?
The crop of political system and politicians that Nigerians have is appalling. Imagine what a whole wife of the president is saying!

khalids:
if the rate drops to 2%, he still has his original 40Million plus 800k interest....which he can diversify to continue to generate interest for him....

But he was banking on paying his rent with the interest. If his rent is 2m, and tbills interest is 800k, he would likely have to dip into his capital for the balance.

dake40:
What he meant here is LONG TERM..

Yes I know he meant long term, but how that buttresses his point is what I don't understand. What difference would it make if the person planned to live there just for the short term 2-3 years?

isthatso:
Property does not always appreciate. Property is like any commodity, subject to demand and supply and if you buy at the peak of a market your property may never appreciate in real terms in your lifetime I have already given the example of anybody who bought property before 2015. Most Nigerian properties are in real terms worth half of what you paid in 2015. Most people don’t understand this because we are dealing in Naira. The truth is most of our living expenses tract the dollar because most of the things we consume are imported. A good example, you cannot sell your property today and buy the same car or pay your children’s fees with the same Naira you used to purchase your house pre 2015. In real terms your pre 2015 property is worth half what you paid in 2015. See my post above for a more detailed explanation.

Majority of the time, property appreciates - in most countries.

The reason land generally tends to appreciate is because it is limited in supply, consequently, as the population increases, so does the demand for land, driving its price up over time.

khalids:
Even as a pensioner, he will have no problems...because the profit from the treasure bills pays for the rented apartment and still leaves him with 2million to play around with...........

Same pensioner that builds his house with 40m, has roof above his head but cannot feed, because his pension is not coming at the right time or has been swallowed by a political snake....

This is what the OP is analyzing for you

So what happens when treasury bills rates drop to 2% for example and it can no longer cover his rent not to mention have change left to play around with? The security of having a roof over your head should never be underestimated. Investment climes change, stocks go up and down, same with savings rates.

seniormallam:
Uve just described a typical life of a civil servant here, pls what concerns a civil servant with a #40m talk?
Bros this talk is not for people on your level, its for millionaires, go and buy ur land and start building it small small, but someone on ur level can still buy two land, after 10years sell one to build one, instead of squeezing urself to death in the name of landlord.

So the person with #40m will not retire someday? Are civil servants the only ones entitled to pensions? Obviously not.

dake40:
Read the post again. And this time, be more careful...


Don’t buy a house unless:

1. Mortgage is < 8%,

2. You can pay cash,

3. You plan to live in it for 10 years,

At a grown age, you know the time has come to have your property (though still optional), and during this time, you would have have enough to buy a home (with latest design)

The issue with Africans is LANDLORD mentality which is very wrong... For young hustlers, dont build/buy a house you know you wont live in for years when you can rent 1 and reinvest the remaining funds in good investments..

What does living in it for 10 years have to do with the argument? What difference does it make whether you live in it for 5 years or 12 years?

He should come back and say this when he is a pensioner, retired and still renting. Then he will understand the importance of having your own home. Yes, you have to apply sense in all financial decisions but making a blatant statement like this makes no sense.

Astark:
they are lazy?

They can go to great countries like united kingdom, Japan without visa.

They have 24 hours light

They have the best universities, bank's, hospitals I'm Africa

There are employment opportunities there

There's no terrorists groups like boko haram, herdsmen and co

They don't indulge in prostitutions, drug trafficking and fraud.

They aren't known for crimes.

They have hosted many world cups tournaments like football,rugby, cricket

They are among world best cities unlike Nigerians overrated slums

If that's why lazy means, then Nigerians should be lazy. They are lazy yet Nigerians want to die there instead of coming back.

They own Nigeria largest mobile network and Nigeria largest shopping malls yet you don't see the Zulus here.

That is NOT true. South africans require a visa for the UK.

starbuck:
Op, we never understood the formulas itself and instead of breaking it down for us, you are compounding it for us with your English

Shame on Nigeria!

Meanwhile, Nigerians will be claiming being intelligent. Intelligence that cannot translate to development, is that one intelligence?

Nation of crooks. Later they will accuse the government of being corrupt. Nigerians deserve the leaders they have true true.

Chukwurah003:
No thanks to PDP’s misrule

Smh. It's amazing how people like you choose to play politics with every single issue. Please apply some sense.

dominique:
I feel the epxulsion decision was too steep but he brought this upon himself. You're in school to study, get your degree and vamoose not challenge school authority, even implying that they are thieves



Who doesn't know about the misappropriation and mismanagement of funds going on in our higher institutions? Na only get fingers to type "long long English" (in Mercy Eke"s voice). I feel for him but he brought this mess upon himself

Na wa. See reasoning. Smh

BigCabal:
Question and Answer Sesh About Jollof Road on Day 40

On day 40 of 80 in our 7th of 14 countries, we decided to do a little AMA. We put up the same question across all of our social medium platforms – ask us anything. And these were the questions we got.

Which has been the best country and which has been the worst so far?

Toke: Ghana and Ivory Coast have been the best. I bitched a little about Ivory Coast a little on our first day there, but I ended up falling in love with it. Ivorians are not as warm and welcoming as Ghanaians who have been the warmest and most welcoming people to me so far. Worst has to be Guinea. Except for Buba who has been the loveliest host, I just don’t have that many pleasant things to say about Guinea.

Fu’ad: Liberia has been the best for me. Liberians feel like my own people. Least favorite country will be Guinea. That’s because their soldiers at checkpoint are entitled extortionists.

Tosin: Best, Ghana or Liberia Worst, Guinea

Kayode: Best Ghana. Worst Guinea. Ghana is pure vibes; a vibe I want to wake up to everyday. Guinea is well not much of a vibe, It’s a stiff place with terrible law officers. Ironically the people are really good and friendly.

See more:https://www.zikoko.com/jollof-road/question-and-answer-sesh-about-jollof-road-on-day-40/

So this is not just a Nigerian thing. Africa my Africa... smh

It's like nobody watches local league. See Manchester, Liverpool, Chelsea everywhere. UK is a lucky country , they have successfully monetized this game lol.

Nigerians always unite once an outsider insults them

Then it's back to status quo the following day....

Zikoko - one of the funniest ever Nigerian sites. Well done guys!

cenaman:
Where is Nigeria air?

It's in the air, thin air

travelwaka:
Smiles I have just learn to not look at the bad side else you might get frustrated.

You are right. I think at some point it would be good for you to contact the tourism board / ministry to see if they can potentially partner with you. What you're doing with a lot of your posts is actually what THEY should be doing so at least they should be able to support in some way.

travelwaka:
Thank you, you are so right, Badagry has everything it takes to be one of the biggest tourism hubs in Nigeria due to its rich history but the bad roads and so many other factors are preventing it from being so. And the government also need to do something to promote tourism.

We have a Tourism Board, one just wonders what they are doing. Sigh.