Economy
Making Sure You Get the Most Out of Your First Rental Property
Rental properties are far from inexpensive investments. Between purchasing, maintaining and managing your first rental, you’re likely to expend a fair amount of capital. And given how much money you’ll be putting into this investment, it’s only natural that you’d want to see healthy returns. While getting the most out of your first rental property can present some challenges, it should be well within the abilities of any investor who isn’t afraid of a little work.
Educate Yourself on the Market
If you have little to no knowledge of the real estate market, it’s strongly recommended that you seek advice from seasoned investors. So, if you have any friends, family members, coworkers or neighbors who have found success through real estate investments, don’t hesitate to get in touch and explain your situation. First-time investors whose social circles are bereft of real estate gurus are urged to reach out to knowledgeable real estate investment companies. Experienced pros will be able to educate you on the basics of location research, the tenets of profitable properties and a bevy of other important subjects. For example, if you’ve been wondering, “Is it a good time to invest in real estate?,” they’ll be more than happy to address this question in detail.
Look for Properties in Profitable Locales
To help ensure the success of your first rental property investment, you’ll need to seek out properties in profitable locales. After all, it should as no surprise that rentals found in areas with ample demand for housing tend to be more profitable than rentals in areas where housing demand is virtually nonexistent. With this in mind, never commit to purchasing a rental property without first researching its location.
In the course of your research, make sure to take a close look at an area’s population size, local economy, property values and rental rates. All of this info should provide you with a clear picture of how in-demand an area is and how much you stand to profit from investing in a local rental. So, no matter how in love you are with a property, you should never forgo proper location research.
Ensure That You’re Aware of Any Outstanding Problems
Investing in a rental property that’s brimming with outstanding issues can prove intensely frustrating and financially ruinous – especially if you don’t become aware of said issues until after the sale has been finalized. In the interest of preventing such an unfortunate outcome, insist on having any rental you’re thinking about purchasing thoroughly inspected by a certified professional. This will ensure that you know exactly what you’ll be getting should you follow through with a purchase.
Furthermore, the benefits of a formal property inspection don’t stop there. If an inspection turns up problems that you – and possibly even the seller – had not been aware of, you’ll be in a good position to request a price reduction that reflects the cost of fixing those issues. Additionally, depending on the scale of certain issues and the financial burden of addressing them, an inspection may show you that a property is an unwise use of your resources.
Make Sure to Screen All Prospective Renters
No matter how nice your first rental is or how profitable an area it’s located in, tenants who can’t – or won’t – pay rent can dramatically diminish your monthly profits. To limit your chances of ending up with such tenants, you’ll need to screen everyone who submits a rental application. Among other things, a good screening process entails taking a close look at an applicant’s employment situation, confirming that they make enough to comfortably afford rent and getting in touch with any references they list. Should you lack the time to personally screen every applicant, consider working with a dedicated screening service.
It’s easy to see why so many rental property investors are determined to generate the highest possible ROI. Considering how much capital goes into the average rental property, it’s only natural that they’d strive for favorable returns. While success is never a guarantee in such endeavors, there are numerous steps investors can take to minimize their chances of disappointment. So, if you’re determined to get the most out of your first rental property, put the pointers discussed above to practical use.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn