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
Three bellwether stocks lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.62 per cent on Friday, December 12 with the NASD Unlisted Security Index (NSI) jumping by 22.20 points to 3,600.43 points from 3,578.23 points.
In the same vein, the market capitalisation of the trading platform increased by N13.28 billion to close at N2.154 trillion from the previous day’s N2.140 trillion.
During the session, Central Securities Clearing System (CSCS) Plc went up by N2.53 to close at N39.71 per share compared with the previous day’s N37.18 per share, Geo-Fluids Plc added 35 Kobo to its price to finish at N5.00 per unit versus Thursday’s closing price of N4.65 per unit, and FrieslandCampina Wamco Nigeria Plc appreciated by 23 Kobo appreciation to sell at N60.23 per share versus N60.00 per share.
It was observed that yesterday, the price of Golden Capital Plc went down by N1.05 to N9.45 per unit from N10.50 per unit, and UBN Propertiy Plc declined by 21 Kobo to N2.01 per share from the N2.22 per share it was traded a day earlier.
There was a significant improvement in the level of activity for the day, as the volume of transactions increased by 6.2 per cent to 37.4 million units from the previous day’s 35.2 million units, the value of trades went up by 265.1 per cent to N4.9 billion from N1.4 billion, and the number of deals soared by 13.80 per cent to 33 deals from 29 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the last trading day of this week as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, the second spot was taken by Okitipupa Plc with 178.9 million units traded for N9.5 billion, and third space was occupied by a new comer in MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc also finished the session as the most active stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units valued at N420.3 million, and Impresit Bakolori Plc with 537.0 million units sold for N524.9 million.
By Dipo Olowookere
The bullish run on the Nigerian Exchange (NGX) Limited continued on Friday with a further 1.00 per cent growth buoyed by gains recorded by Guinness Nigeria, Champion Breweries, and others.
Data showed that the consumer goods space expanded by 1.53 per cent during the last trading session of the week, as the insurance counter grew by 0.51 per cent, and the industrial goods sector marginally gained 0.01 per cent.
However, the banking index depreciated by 0.54 per cent due to a pocket of profit-taking, and the energy industry shrank by 0.09 per cent, while the commodity sector closed flat.
Guinness Nigeria gained 10.00 per cent to trade at N217.80, Morison Industries rose by 9.84 per cent to N4.69, Champion Breweries jumped by 9.69 per cent to N14.15, Austin Laz grew by 9.66 per cent to N2.27, and C&I Leasing appreciated by 9.62 per cent to N5.70.
Conversely, eTranzact lost 10.00 per cent to finish at N12.60, Chellarams slumped by 9.00 per cent to N13.20, Eunisell depleted by 9.89 per cent to N75.15, Africa Prudential moderated by 9.77 per cent to N12.00, and DAAR Communications decreased by 9.18 per cent to 89 Kobo.
The busiest stock on Friday was Access Holdings with 107.6 million units sold for N2.2 billion, Consolidated Hallmark traded 59.9 million units worth N245.8 million, Zenith Bank transacted 48.2 million units valued at N3.1 billion, Transcorp Power transacted 42.8 million units for N13.1 billion, and Champion Breweries exchanged 36.4 million units valued at N510.2 million.
At the close of business, a total of 602.8 million units worth N30.7 billion exchanged hands in 20,550 deals yesterday, in contrast to the 529.7 million units valued at N12.3 billion traded in 18,159 deals on Thursday, representing a surge in the trading volume, value, and number of deals by 13.80 per cent, 149.59 per cent, and 13.17 per cent apiece.
Business Post reports that the All-Share Index (ASI) soared during the session by 1,485.89 points to 149,436.48 points from 147,950.59 points and the market capitalisation moved up by N945 billion to N95.264 trillion from N94.319 trillion.
By Adedapo Adesanya
An intervention of the Central Bank of Nigeria (CBN) in the foreign exchange (FX) market eased the pressure on the Naira on Friday.
The apex bank sold forex to banks and other authorised dealers in the official window to defend the domestic currency, helping to calm the FX demand pressure, with the Nigerian currency appreciating against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.11 per cent or N1.57 to sell at N1,454.50/$1 compared with Thursday’s closing price of N1,456.07/$1.
Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N3.95 to close at N1,946.15/£1 versus the previous day’s N1,950.11/£1 but lost 10 Kobo on the Euro to quote at N1,706.46/€1 compared with the N1,706.36/€1 it was exchanged a day earlier.
At the black market segment, the Nigerian Naira maintained stability against the Dollar during the session at N1,470/$1 and also traded flat at N1,463/$1 at the GTBank forex counter.
Despite the sigh of relief, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.
Gross FX reserves increased for the twenty fifth consecutive week, growing by a strong $396.84 million week-on-week to $45.44 billion.
As for the cryptocurrency market, it was down on Friday as pressure remained after Federal Reserve chair Jerome Powell’s speech on Wednesday, which hinted at a possible rate cut pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three.
However, Chicago Federal Reserve President Austan Goolsbee, who was against a December rate cut, said he expects more in 2026 than the current median projection.
Ethereum (ETH) slumped by 5.1 per cent to $3,090.61, Solana (SOL) declined by 4.5 per cent to $132.79, Cardano (ADA) depreciated by 3.8 per cent to $0.4103, and Dogecoin (DOGE) dropped 2.5 per cent to trade at $0.1373.
In addition, Bitcoin (BTC) lost 2.4 per cent to sell at $90,342.74, Litecoin (LTC) tumbled by 1.9 per cent to $81.86, Binance Coin (BNB) fell by 0.6 per cent to $886.93, and Ripple (XRP) slipped by 0.5 per cent to $2.02, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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