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Investment: Bank Shares Or A Plot Of Land?

Hello guys,

Whats a preferable investment option between buying of First bank shares and a plot of land. Either of the two is for long time investment . All advices will be appreciated. A close friend of mine with 300k naira savings was requesting for an advice.

Please assist.

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37 answers

We buy, We sell, We manage Land and Houses. CALL: 08035070731 OR 08057403937 NOW!

A piece of Land measuring approximately Seven Thousand Three Hundred and Eighty-Nine square meters (7389m2) located at NigerCat area in Ekpan, DELTA STATE: suitable for church site or campground, school or corporate residential quarters. Contact the mandated or authorized real estate broker, Sheriff Abugu on 08035070731.

NOTE: 100×100 ft sq units and 100×50 ft sq units are also available at the same location

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I'm definitely not savvy, maybe lucky.

This lack of certificates many months after the PO is a big minus for naija stocks.

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Naijaking

Ur case is exceptional because you were lucky, or savvy in picking a choice plot. If you wait for First bank it will definitely reach its real price of about N50-60 and the profit should be almost comparable then. I dont agree that land is that short-term in appreciation rates.

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@poster

Time seems to have answered your question. Around the time in question, I bought 2 plots of land around Abuja for 900K, and bought 10k shares of First Bank for 330k, ie 33/each.

Today, I'm still waiting for the stock certificate from First Bank, but the stock is at valued 43 naira each or 430k for my total portfolio.

The 2 plots of land I bought for 450k each is currently selling for 1.5million each after a bridge and road were added to the area.

I leave you to calculate the % increase.

I am not based in naija, and certainly not a stock exchange professional, and all my transactions were done from overseas using advice I picked up from this forum, and of course some relatives in naija.

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just pick one of the two remember the hugher the risk the better the returns

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Hello nairalanders, i need to invest some money in shares and i dont know how to find a standard stock broker

The said amount is for short term purpose so this means that the broker must be very alart and a good speculator.

All inforrmation would be appreciated.

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Hi Guys,

Talking about lands. Does anyone have info about buying land in IBADAN and price per plot ,

thanks 4 anticipated contributions

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i support the last post, go for land if its long term, i want that for myself too

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you can go for a plot of land somewhere you know would soon be open, as soon be urbanised, now that we have alot of banks buying propertise now

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Definitely, I'll go for the land as a stable means of investments. Shares do go up and down, and are bound to be subjected to geopolitical influences, if you miss out now, you can also buy a similar share type but Land on the other hand will not depreciate.

Ensure you purchase from a reliable source, otherwise you'll pay triple the amount for the omo-onile(s).

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you are right, he should think of how much he has before venturing into an investment.

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It depends on what the guy has in mind to do.If he is interested in longterm investment, then a piece of land is appropriate .Though nowadays you might not get a prime location for that amount,if u are thinking of short term. Buying bank shares, not just 1st bank now, with a bit of luck will yield more than double that amount invested by next year cos we will see even penny stocks (priced lower than the 10naira mark) growing to above N10.So the decision is up to you.

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landed property is better but needs more money to invest than shares buying

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if u must buy land,buy one in the choice part of town,but buy one that has an abandoned property on it,why,people sell with emotions.one with no money to complete his house project will sell it for less,u buy it for less and renovate it for less,then sell it for much.land never depreciates but, if shares buy shares from start up companies.their shares are cheaper.buy from those that have good marketing abilities.if mtn should sell shares i'll buy their's.remember big companies were small once,sell ur shares in a year.help others to invest their money.if u want more money,help those who have money to increase or mutiply their money by doing these things i've stated,help them find prospects.and u will be rich.call me to give u 7 areas u can invest for free,no charges for my services.08037667755 is my number.

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Back to the topic,

based on my records, my initial stock market investment of 600k in Dec of 04 is now worth >N7m. If you know of any land deal that appreciated 1100% in 3.5 yrs, please let me know! The key is to learn how to find relatively undervalued stocks and buy them before other people realize it.

You should get the book "Investment for Dummies" by Eric Tyson (pls don't take offense by the name). He compares both forms of investment (property vs Stocks) and shows that stocks beat real estate in the long run. It's also a good reference book.

Either way, careful & legal investment in either will give you good returns.

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@ marco

You'l have a refund if you bought over 50,000 units. Call 01-2708930 Zenith registrars.

They'l give you the info you need. You can confirm your holding and find out if any money was sent back to you.

good luck

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i'm a new entrant into the shares biz.bought a few shares last december when i went home 4 xmas,including dangote(a substantial amt!).

i read recently that the offer was oversubscribed so aliko plans to refund people's moneys with interest.anybody out there knows how i can find out whether my purchase/subscription went thru,especially now that the price is nearly 3 times the IPO.i'l appreciate any replies.

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please let me where i can get secured land free from omo onile, outside and inside lagos ,cheap one too,i just won start some fisheries stuff on it while i do my extra year in school, please advice,thanks for this forum

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Could someone please tell me why Guinea Assurance is still .72kobo if it is true that it met the requirements of the recapitalisation exercise. Am I missing something?

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thank you for thanking us

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@spiolt,

i want to believe u can still get land for real, from the right source. I am weary of lagos though!!!

I would still prefer u split your investment with shares and if possible land; there are land u can get for 150k outside lagos!!!

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i'd do the shares. shares are a good investment. besides you can diversify to reduce risk. as for land once you buy from the wrong source, you don finish be that.

try first bank shares. you wont regret it.

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with the way things are going,it is safer to invest in stocks

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Hello all,

While my heart goes for land, the reality of the day in this country for an up-comming investor is that shares is the way to go. The reason is just cos of the HUGE capital required for land/real estate properties. awolumate said his friend has N300K. Can anyone in the house tell me where to get a plot of land for that amount in a resonable location and from genuine source (e.g government)? With shares (expecially like that of first bank with almost guaranteed average yearly bonus of about 1:4), you can build your wealth gradually, and when it grows to a certainn level, one can conviently divert to real estate.

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you can also try mutual fund like ibtc's(they grantee you 50% yearly return on your investment). the good thing about this is that you don't av to worry your head about which shares to buy and when to sell, they do that for you

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Zenith Bank shares are also doing pretty well, but. . . . like every investment, there is a risk involved,

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I think real estate would be the best one to go for but you can get a plot of land-as you said -for less than 300K.but if you know how to play your cards right, you could invest in both. you can spent 3/4 on the plot of land ( i guess people use different measurement) and spend the other 1/4 on buying stocks ( i mean stocks of a correct company) honnestly if i was the one , this is what I'll do.

@ fammie, I know what u trying to say here but to be honest it better to invest into assets thats you can keep for long and you know you are the one controlling your investment statement than invest in first bank as you said

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The guy asked for First Bank shares and not just any bank or company's share. First Bank is one of the best banks in Nigeria and they are doing very well in all parameters. I have First Bank shares and my investments in it has doubled greatly. For instance, i bought First bank shares at N18.00 in 2002 and today it is around N40.00, with yearly bonus shares and dividend and believe me, it'll still get to around N55.00 after their PO. Calculate the returns based on the units purchased.

For Landed property, the risk is very high if you dont get it from a good source. I had been duped before and it took me like 3 years before i could get my money back from the seller(who was a friend of mine). But if you get it from a good source, it's a good investment too.

Moreover, it's very easy to dispose shares but not landed property.

Thanks

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Meanwhile I'll still advice that you still buy a plot of land and reserve some change for some risky business if you can.

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I really don't understand why the price for land in Nigeria continues to go up, I will definitely recommend investing in Land, however I will advice that you buy from a reliable seller.

Nigeria Stock Market is making alot of buzz, but stock are very complicated to understand, even in the U.S where there is alot of regulations to protect investors, we still have people manipulating the stock market, through insider trading. For a place like Nigeria I don't think buying stocks is a better risk.

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Go for land and don't mind any fictitious things.

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The comments of Óne'are just my sentiments exactly. I only wish to add that you should advise your friend to immediately take possession of the landed property if he goes ahead to buy it and not think for an instance that having title documents (e.g CSCS Statement in case of share/stocks) is enough.

Cheers!

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A piece of land is the best option. Its one of the few commodities that never depreciate in value. Its always there no matter what. But be careful you dont buy a land in dispute or get conned. Deal only with authentic and verified sources and get a good lawyer to back you up. Property business is a very good retirement option.

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@all

awolumate see landed props is it,

@eko4show

that was my props with lagos, omo nile alone can give you head ache. guess from federal govt is even better but

@christino wont that mean you need connections to get one.

would appreciate infor if any

cheers

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i bought a plot of land in sangotedo (after ajah) late 2004 for 700k, my neighbour that just sold his recently sold it for =N=3.8m which comes to more than 500% appreciation in less than3 years.

to that extent, ill vote for real estate any day especially for long term investment. the only comma would be getting the land from a genuine source. land palaver in naijais a different story (omo onile and stuffs like that)

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Bank shares are just too volatile, so the plot of land is a much better investment, especially if it's at a good location:

It may or may not appreciate in value, but it cannot depreciate unless there's a major earthquake in that area!

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300K is much for long term investment.

I would advice both. 1st bank is the foremost bank in nigeria investment there for long term is almost a sure bet considering niaja factors. Land is certainly a sure investment especially i nigeria with alot NRN abroad looking to get something in nigeria by all means after 'hitting' abroad! For example i got a plot of land at the outshirts of owerri for 50k in 1996,recently(Feb.07) i put word out thats its for sale, response is 1MILLION upwards. Now this is land that is fallow ok my uncle farms on it as care taker.

I would go for land for long term always remeber thats 10years. How much would be 50k of 1996 be now and the difference is what is your gain THE ROI is well yet to calculate that,

Also depends on how long is you term.

Shares u can trade if you need money urgently becos niaja is an emerging market now so things are just starting to pick up,

But if its disposable money then both i would suggest but ore on land,

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