@horlami

UNPOPULAR OPINION A younger friend that is into trading called me and asked where I would advise him to purchase land. I asked if he was ready to build. He said no. He wanted it as an investment. I asked him if the funds were from proceeds of trade or profit from the proceeds of trade. He went silent. Land is not a cash flow asset. And sadly in Nigeria, nor is rent when properly disaggregated. You can’t be rich from rental income unless you inherited the asset. Land is capital tied down for the possibility of capital appreciation. You buy land from profit of proceeds of a business. You grow your trading capital first. When you start earning sizable profit from your capital, you reinvest the profit and then you can tie down capital from that profit. This might not apply to salaried workers. Their salary is profit. So for such categories buying land might be some form of savings. In Nigeria, if you have regular income, trust me, you are better off as a tenant. Your landlord subsidizes your cost of living. Strive first for cash flow and then you can lock down capital after sufficiency. Then try not to invest more than 25% of your funds into your business. Seek finance. When you must pay back debt, you get better at understanding profits. Yes financing in Nigeria is killing. Learn numbers first!

0 reply

0 recast

0 reaction