Sometimes,
we ought to challenge the popular beliefs in diverse areas of our lives,
investment inclusive. Better results only come when we get tired of the old
ones. The popular belief of making enough money and build houses for rent is
safe and convenient. Safe enough to stop us from thinking further
An example of worthy investment is cashew plantation. Check what
4.5million will yield in 16 years on a rental property compared to cashew
plantation in the same period
A)
Building a 3-bedroom apartment in a
low-cost area
Building
cost--Approx. 4.5million naira
Average
yield per year---250,000naira
Time of cost
recovery----16years
Returns in
16 years----1 old apartment and 4million naira
B)
Investment on one acre Cashew
Land +
cultivation------Approx. 181,000 naira per acre
i.e.
4.5million will guarantee minimum 24 acres
cashew
starts fruiting in 3years
1 acre of
cashew will yield average of 600kg per acre annually i.e. 14,400kg in 24 acres
Therefore in
16 years, it will yield 14,400kg * 13 which is 187,200kg (approx. 187tons)
At the
minimum price of 240,000naira per ton-----
187tons in
16 years means 44,880,000naira
So tell me a rental property of 4.5million
that will yield over 44million in 16 years i.e. over 2.8million annually as
returns.
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