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 Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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