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Real Estate Investment Trusts (REIT) A REIT is a company that invests in real estate and distributes its income to shareholders e.g SkyeShelter REIT, UNHOMES/GMA REIT.

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  #1281 (permalink)  
Old 26th November 2012, 11:01 AM
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Default Re: future of real estate?

Quote:
Originally Posted by Oracle View Post
In Nigeria, it is owning a car!

We can not have a right or wrong answer to this question.
What about the wear and tear of the car? It depends on the individual.
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  #1282 (permalink)  
Old 26th November 2012, 11:23 AM
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Default Re: future of real estate?

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Originally Posted by emmanuel ewumi View Post
It depends on your job, comfort, location of your residence and place of work.

Imagine living in Sango Ota and working on the Island.
Owning a car is by far better and cost effective than jumping public transport as long as you are in Nigeria.
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  #1283 (permalink)  
Old 26th November 2012, 11:33 AM
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Default Re: future of real estate?

Quote:
Originally Posted by emmanuel ewumi View Post
We can not have a right or wrong answer to this question.
What about the wear and tear of the car? It depends on the individual.
Wear and tear of the car? Then quantify the wear and tear of the body when you stand at the bus-stop under rain and shine? Quantify the wear and tear of the body when you start chasing a bus just to board before others? Quantify the wear and tear when you know that around 2am where all taxis drivers must have gone to sleep and you stand outside looking for a vehicle that would take any of your sick siblings or children or loved ones to the hospital?
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  #1284 (permalink)  
Old 26th November 2012, 12:02 PM
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Default Re: future of real estate?

Quote:
Originally Posted by Oracle View Post
Owning a car is by far better and cost effective than jumping public transport as long as you are in Nigeria.
How can owning a car be more cost effective? Convenient? Yes, but cost effective… think about it
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  #1285 (permalink)  
Old 26th November 2012, 12:42 PM
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Originally Posted by nosa2 View Post
How can owning a car be more cost effective? Convenient? Yes, but cost effective… think about it
I tried living without my car for one week here in Abuja to test the cost effectiveness of public transport, and bros, I lasted only one day of that campaign.

From Point A to Point B in Abuja, you will need to take a taxi. Taxi drop is minimum is N300. To and fro is N600. From my house to the office, which is about 8 - 12km depending on the route costs N500 and that is N1,000 per day. And that is N5,000. Excluding the short runs you may need to do occasionally. If you include it, that will give you an average of N7,000.

I buy fuel every weekend, to fill up my tank and buy 10L of fuel for my generator and guess what? I spend about N3,500 - N4,200 per week.

Now, assuming I spend N10,000 to fuel my car and public transport costs me N7,000 do you think I will buy a car of continue taking public transport, in Nigeria? Heck no! I will buy that car despite the N3,000 savings of using public transport. Why? The time it will take me to commute, looking for public transport and landing in dirty and hot taxis, is better spent by me listening to my favorite self development CDs inside AC and the time saved can be spent with my family. That time given up on taxis when cumulated for a month will be enough to finish reading a good book on Entrepreneurship or working on my business or updating my blog.

At the time I started my career, it may have been worth it to use public transport since I had no family to spend time with, so there was some excess time I could squeeze to develop myself through weekends and in the nights (that was how I wrote and passed that exam anyway) and could download self development tracks on my phone and listen to something good through the rough bus ride.

At the end of the say, there is no hard and fast rule about it because it all depends on your circumstances and your goals.
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  #1286 (permalink)  
Old 26th November 2012, 01:04 PM
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Default Re: future of real estate?

Quote:
Originally Posted by knightofdelta View Post
I tried living without my car for one week here in Abuja to test the cost effectiveness of public transport, and bros, I lasted only one day of that campaign.

From Point A to Point B in Abuja, you will need to take a taxi. Taxi drop is minimum is N300. To and fro is N600. From my house to the office, which is about 8 - 12km depending on the route costs N500 and that is N1,000 per day. And that is N5,000. Excluding the short runs you may need to do occasionally. If you include it, that will give you an average of N7,000.

I buy fuel every weekend, to fill up my tank and buy 10L of fuel for my generator and guess what? I spend about N3,500 - N4,200 per week.


Now, assuming I spend N10,000 to fuel my car and public transport costs me N7,000 do you think I will buy a car of continue taking public transport, in Nigeria? Heck no! I will buy that car despite the N3,000 savings of using public transport. Why? The time it will take me to commute, looking for public transport and landing in dirty and hot taxis, is better spent by me listening to my favorite self development CDs inside AC and the time saved can be spent with my family. That time given up on taxis when cumulated for a month will be enough to finish reading a good book on Entrepreneurship or working on my business or updating my blog.

At the time I started my career, it may have been worth it to use public transport since I had no family to spend time with, so there was some excess time I could squeeze to develop myself through weekends and in the nights (that was how I wrote and passed that exam anyway) and could download self development tracks on my phone and listen to something good through the rough bus ride.

At the end of the say, there is no hard and fast rule about it because it all depends on your circumstances and your goals.
And the cost of buying the car??? Some of us here refer to Molue, BRT, okada, Keke napep...etc as public transport. So your N7000 may mean N2000 for me. I think that public transport is more cost effective, considering that hiring a taxi as decribed may well mean having a driver at all times.

Last edited by donchisel; 26th November 2012 at 01:21 PM.
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  #1287 (permalink)  
Old 26th November 2012, 02:03 PM
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Default Re: future of real estate?

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Originally Posted by donchisel View Post
And the cost of buying the car??? Some of us here refer to Molue, BRT, okada, Keke napep...etc as public transport. So your N7000 may mean N2000 for me. I think that public transport is more cost effective, considering that hiring a taxi as decribed may well mean having a driver at all times.
Hmm...

If you want to get keke napep in Abuja city center to carry you to where you will take BRT or green bus (equivalent to Lagos danfo), be ready to trek a minimum of 4 kilometers everyday if your office is in certain places.
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  #1288 (permalink)  
Old 26th November 2012, 02:05 PM
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Default Re: future of real estate?

Quote:
Originally Posted by donchisel View Post
And the cost of buying the car??? Some of us here refer to Molue, BRT, okada, Keke napep...etc as public transport. So your N7000 may mean N2000 for me. I think that public transport is more cost effective, considering that hiring a taxi as decribed may well mean having a driver at all times.
Exactly, taxis aren't pubic transportation. Public transportation consists of busses, trains etc and those would always be cheaper
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  #1289 (permalink)  
Old 26th November 2012, 02:07 PM
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Default Re: future of real estate?

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Originally Posted by knightofdelta View Post
Hmm...

If you want to get keke napep in Abuja city center to carry you to where you will take BRT or green bus (equivalent to Lagos danfo), be ready to trek a minimum of 4 kilometers everyday if your office is in certain places.
Abuja na bad example
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  #1290 (permalink)  
Old 26th November 2012, 02:55 PM
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Default Re: future of real estate?

Quote:
Originally Posted by donchisel View Post
And the cost of buying the car??? Some of us here refer to Molue, BRT, okada, Keke napep...etc as public transport. So your N7000 may mean N2000 for me. I think that public transport is more cost effective, considering that hiring a taxi as decribed may well mean having a driver at all times.
How do we measure cost effectiveness? Is it only intrinsic costs? I think we should include the whole gamut of costs - intrinsic and opportunity costs.

Like KOD said, the comparison is not absolute. And it is not a one size fit all. Methinks it is a journey. So it depends where one is on the journey.

See for example how the scale has graduated for me:
1. Trekking to lectures in Ogbowo campus from residence to the LT (instead of taking a bike) used to be more cost effective for me;
3. And then taking a bike/taxi instead of trekking to work became more cost effective.
4. Then driving an own car became more cost effective than using a taxi
5. And now a chaffeur driven car is proving more cost effective than driving.
6. And I know people who say that owning a private jet, is more cost effective than having to waiting almost endlessly for a flight/suffer a cancelled flight (I pray I get to prove that someday).
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  #1291 (permalink)  
Old 26th November 2012, 03:01 PM
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Default Re: future of real estate?

Quote:
Originally Posted by nosa2 View Post
How can owning a car be more cost effective? Convenient? Yes, but cost effective… think about it
I have a friend. She works on contract basis. From her house in Woji(PH) to where she works, she takes taxi to around Mothercat,Trans Amadi(PH). They charge her N600 to go and while returning taxi charge N1,000 giving traffic reasons. So in a day(to and fro office), she spends N1,600. This is when she doesn't go out after work or go out from work during break. I know her work schedule. She works all weekdays and 2 weekends every month except on vacation of 1 full month.

Now see this analysis:

She takes 30days leave. So no work and I'm presuming that she doesn't take transport during this times.

In every month(except when on vacation), she works 2 weekends and rest 2 weekends. 2 weekends translates into 4 days(2 Saturdays and 2 Sundays).
So for 11 months(I excluded the 1 month vacation) and there would be:

11(months) X 4days(the rest days for the weekend)=44 days( these days are from the rest-weekends

Now, there are 365days in 1 year. Take away 30days(leave days). Take away 44 days( rest weekends) and the leftover will be the number of days she worked. i.e

365-30-44= 291 days( working days)

Since she spend N1,600 per day for payment of taxi, for the whole working days, you will get:

N1,600 x 291 days= N465,600

The above cost is just the cost fo taking taxi to work and back home. No other movement. No going to church. No going to see friend. No hanging out. No going for a date. No going on a trip outside town to attend burial, weddings etc. There is no A/C in the vehicle. You will be beaten by rain if the side glasses are not ok. You will inhale fumes coming into the inside of the taxi. No gbedu!

If you do this for 3 years, you will be paying like N1,396,800 for just going to work.

The next questions are:

How much is a used VW golf 1? Not up to N700,000.

How much is brand new hyundai i10? Around N1.7m.

How much is brand new Kia Picanto? Around N1.5m.

With these list of vehicles, you will just fill your 50-litre car with N6,000 ( at N120 per litre) and you will use the fuel for 4 weeks if you decide to just drive to work and come back.

If you buy fuel every 4 weeks(assuming it finishes after 4 weeks considering the journey to and fro office), you end up spending N6,000.

In one year, you will spend 11 x 6,000= N66,000(I excluded the vacation days).

In 3 years, you will spend N66,000 x 3= N198,000 for fuel.

If you bought a new car, maintenance will be cheap. it will just be oil change, wheel alignment & free air. This will not cost you up to N10,000 assuming you are using Total engine oil and doing it in Total fuel station. If you do this every 3 months, you will spend N40,000 for maintenance.

After 3 years, you must have spend N40,000 x 3= N120,000 on maintenance.

If you add the fuel cost and maintenance together, you will have N318,000 for 3 years.

How much car did you buy?

Scenerio 1:
Let's use the N700,000 VW gold 1.

Total cost after 3 years( excluding insurance,other repairs based on mileage)= N700,000 + N318,000
=N1,018,000

Scenerio 2:
Let's use the N1.7m-Hyundai i10.

Total cost after 3 years(excluding insurance,other repairs based on mileage)
=N1,700,000 + N318,000
=N2,018

Scenerio 3:

Let's use the N1.5m-Kia Picanto

Total cost after 3 years(excluding insurance,other repairs based on mileage)
=N1,500,000 + N318,000
=N1,818,000

So just try and compare the above analysis on purchase of vehicle with jumping a taxi. There are vehicles which go for lesser than N700,000 in Lagos with wonderful engine/suspension conditions. In the long run( like 5-7 years), the car owner( low cost cars and not those super expensive cars) will have more savings, less stress than those who jump buses/taxi.

The worst is even buses. If you try and qunatify the smelly breathe from other passengers, the shouts from passengers, the fumes inhaled, the morning and evening jogging just to catch up with a bus etc, you will know that a car(low cost) is by far more cost effective to own than to jumping buses.
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  #1292 (permalink)  
Old 26th November 2012, 03:04 PM
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Default Re: future of real estate?

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Originally Posted by nosa2 View Post
Exactly, taxis aren't pubic transportation. Public transportation consists of busses, trains etc and those would always be cheaper
Hmmm... Taxi is what? In PH, taxi will carry 5 persons. How many will a taxi carry before it becomes public transport. If you tell the guy not to carry anyone cos you can't stand smelly breathe, then he will charge you.

Is 'Okada' a means of public transportation? A keke( a tricyle that carries 3 person) is a means of public transport but a taxi is not.
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  #1293 (permalink)  
Old 26th November 2012, 03:10 PM
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Default Re: future of real estate?

Quote:
Originally Posted by knightofdelta View Post
I tried living without my car for one week here in Abuja to test the cost effectiveness of public transport, and bros, I lasted only one day of that campaign.

From Point A to Point B in Abuja, you will need to take a taxi. Taxi drop is minimum is N300. To and fro is N600. From my house to the office, which is about 8 - 12km depending on the route costs N500 and that is N1,000 per day. And that is N5,000. Excluding the short runs you may need to do occasionally. If you include it, that will give you an average of N7,000.

I buy fuel every weekend, to fill up my tank and buy 10L of fuel for my generator and guess what? I spend about N3,500 - N4,200 per week.

Now, assuming I spend N10,000 to fuel my car and public transport costs me N7,000 do you think I will buy a car of continue taking public transport, in Nigeria? Heck no! I will buy that car despite the N3,000 savings of using public transport. Why? The time it will take me to commute, looking for public transport and landing in dirty and hot taxis, is better spent by me listening to my favorite self development CDs inside AC and the time saved can be spent with my family. That time given up on taxis when cumulated for a month will be enough to finish reading a good book on Entrepreneurship or working on my business or updating my blog.

At the time I started my career, it may have been worth it to use public transport since I had no family to spend time with, so there was some excess time I could squeeze to develop myself through weekends and in the nights (that was how I wrote and passed that exam anyway) and could download self development tracks on my phone and listen to something good through the rough bus ride.

At the end of the say, there is no hard and fast rule about it because it all depends on your circumstances and your goals.
Bros, there is no saving!

Quantify the bad air you breathe in when someone farts in a bus! Who would you hold? You can't even say anything! All you will just say is : Ta lo so! And then stick your head out of the window for fresh air. Common!
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  #1294 (permalink)  
Old 26th November 2012, 03:25 PM
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Default Re: future of real estate?

Quote:
Originally Posted by Oracle View Post
I have a friend. She works on contract basis. From her house in Woji(PH) to where she works, she takes taxi to around Mothercat,Trans Amadi(PH). They charge her N600 to go and while returning taxi charge N1,000 giving traffic reasons. So in a day(to and fro office), she spends N1,600. This is when she doesn't go out after work or go out from work during break. I know her work schedule. She works all weekdays and 2 weekends every month except on vacation of 1 full month.

Now see this analysis:

She takes 30days leave. So no work and I'm presuming that she doesn't take transport during this times.

In every month(except when on vacation), she works 2 weekends and rest 2 weekends. 2 weekends translates into 4 days(2 Saturdays and 2 Sundays).
So for 11 months(I excluded the 1 month vacation) and there would be:

11(months) X 4days(the rest days for the weekend)=44 days( these days are from the rest-weekends

Now, there are 365days in 1 year. Take away 30days(leave days). Take away 44 days( rest weekends) and the leftover will be the number of days she worked. i.e

365-30-44= 291 days( working days)

Since she spend N1,600 per day for payment of taxi, for the whole working days, you will get:

N1,600 x 291 days= N465,600

The above cost is just the cost fo taking taxi to work and back home. No other movement. No going to church. No going to see friend. No hanging out. No going for a date. No going on a trip outside town to attend burial, weddings etc. There is no A/C in the vehicle. You will be beaten by rain if the side glasses are not ok. You will inhale fumes coming into the inside of the taxi. No gbedu!

If you do this for 3 years, you will be paying like N1,396,800 for just going to work.

The next questions are:

How much is a used VW golf 1? Not up to N700,000.

How much is brand new hyundai i10? Around N1.7m.

How much is brand new Kia Picanto? Around N1.5m.

With these list of vehicles, you will just fill your 50-litre car with N6,000 ( at N120 per litre) and you will use the fuel for 4 weeks if you decide to just drive to work and come back.

If you buy fuel every 4 weeks(assuming it finishes after 4 weeks considering the journey to and fro office), you end up spending N6,000.

In one year, you will spend 11 x 6,000= N66,000(I excluded the vacation days).

In 3 years, you will spend N66,000 x 3= N198,000 for fuel.

If you bought a new car, maintenance will be cheap. it will just be oil change, wheel alignment & free air. This will not cost you up to N10,000 assuming you are using Total engine oil and doing it in Total fuel station. If you do this every 3 months, you will spend N40,000 for maintenance.

After 3 years, you must have spend N40,000 x 3= N120,000 on maintenance.

If you add the fuel cost and maintenance together, you will have N318,000 for 3 years.

How much car did you buy?

Scenerio 1:
Let's use the N700,000 VW gold 1.

Total cost after 3 years( excluding insurance,other repairs based on mileage)= N700,000 + N318,000
=N1,018,000

Scenerio 2:
Let's use the N1.7m-Hyundai i10.

Total cost after 3 years(excluding insurance,other repairs based on mileage)
=N1,700,000 + N318,000
=N2,018

Scenerio 3:

Let's use the N1.5m-Kia Picanto

Total cost after 3 years(excluding insurance,other repairs based on mileage)
=N1,500,000 + N318,000
=N1,818,000

So just try and compare the above analysis on purchase of vehicle with jumping a taxi. There are vehicles which go for lesser than N700,000 in Lagos with wonderful engine/suspension conditions. In the long run( like 5-7 years), the car owner( low cost cars and not those super expensive cars) will have more savings, less stress than those who jump buses/taxi.

The worst is even buses. If you try and qunatify the smelly breathe from other passengers, the shouts from passengers, the fumes inhaled, the morning and evening jogging just to catch up with a bus etc, you will know that a car(low cost) is by far more cost effective to own than to jumping buses.
na this kind thing oga oracle dey like
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  #1295 (permalink)  
Old 26th November 2012, 03:33 PM
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Default Re: future of real estate?

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Originally Posted by waaan5 View Post
How do we measure cost effectiveness? Is it only intrinsic costs? I think we should include the whole gamut of costs - intrinsic and opportunity costs.

Like KOD said, the comparison is not absolute. And it is not a one size fit all. Methinks it is a journey. So it depends where one is on the journey.

See for example how the scale has graduated for me:
1. Trekking to lectures in Ogbowo campus from residence to the LT (instead of taking a bike) used to be more cost effective for me;
3. And then taking a bike/taxi instead of trekking to work became more cost effective.
4. Then driving an own car became more cost effective than using a taxi
5. And now a chaffeur driven car is proving more cost effective than driving.
6. And I know people who say that owning a private jet, is more cost effective than having to waiting almost endlessly for a flight/suffer a cancelled flight (I pray I get to prove that someday).
I think the consideration should be if you have the money and you buy a car versus if you have the money and decide to use public transport.

Definitely we can't compare someone who has the money to buy a car with an undergrad student. I want to believe we are looking at a case where you have the money but weighing the options of to buy or not to buy.

If you need to a vehicle to solve the problem of trekking, moving from one place to another,traveling to and fro different places, then it is an utility vehicle. But when there is already a vehicle that had solved this problem and you still need another vehicle to move to certain places where that utility vehicle cannot be permitted, then you are talking about Status vehicle.
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  #1296 (permalink)  
Old 26th November 2012, 03:46 PM
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Default Re: future of real estate?

Quote:
Originally Posted by knightofdelta View Post
I tried living without my car for one week here in Abuja to test the cost effectiveness of public transport, and bros, I lasted only one day of that campaign.

From Point A to Point B in Abuja, you will need to take a taxi. Taxi drop is minimum is N300. To and fro is N600. From my house to the office, which is about 8 - 12km depending on the route costs N500 and that is N1,000 per day. And that is N5,000. Excluding the short runs you may need to do occasionally. If you include it, that will give you an average of N7,000.

I buy fuel every weekend, to fill up my tank and buy 10L of fuel for my generator and guess what? I spend about N3,500 - N4,200 per week.

Now, assuming I spend N10,000 to fuel my car and public transport costs me N7,000 do you think I will buy a car of continue taking public transport, in Nigeria? Heck no! I will buy that car despite the N3,000 savings of using public transport. Why? The time it will take me to commute, looking for public transport and landing in dirty and hot taxis, is better spent by me listening to my favorite self development CDs inside AC and the time saved can be spent with my family. That time given up on taxis when cumulated for a month will be enough to finish reading a good book on Entrepreneurship or working on my business or updating my blog.

At the time I started my career, it may have been worth it to use public transport since I had no family to spend time with, so there was some excess time I could squeeze to develop myself through weekends and in the nights (that was how I wrote and passed that exam anyway) and could download self development tracks on my phone and listen to something good through the rough bus ride.

At the end of the say, there is no hard and fast rule about it because it all depends on your circumstances and your goals.
See what you get when you do analysis paralysis. Oga, you've brought into the equation, too much implicit cost that are quite subjective and vary from person to person.
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  #1297 (permalink)  
Old 26th November 2012, 03:54 PM
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Default Re: future of real estate?

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Originally Posted by goldsun View Post
na this kind thing oga oracle dey like
You know what Nosa asked is like this:

A man living in the city went to the market and priced a bag of garri and he was told N6,000. He said it was too expensive and then left. He went to the village(his village was closeby) and then told his siblings there that they need to go to the market to buy cassava. And they did. The man spent like N3,500 for the cassava and transport combined. They started peeling the cassava, washed them and then cut them. While some went in search of firewood, some tried to clean the compound littered with cassava peel. The cassava was ground and they paid like N1,000 for the grinding. They all made way for their mum who is an expert in frying garri. She fried it very well and then stuffed it into a bag similar to the type he price in the city and then sighed saying: Imagine those in the city charging me N6,000 when I just fried the garri for a total of N4,500. He was happy that he gained N1,500!

But the man did not consider the following in his analysis:

(1)Quantifying the stress of going to the village
(2) Quantifying the stress of his siblings going to the market.
(3) Quanifying the stress of himself & his siblings joining forces to peel, wash and then cut the cassava tubers.
(4) Quantifying the stress of waiting and watching the grinder.
(5) Quantifying the stress of calling his mum to come do the frying.
(6) Quantifying the stress of finally carrying the bag of garri back to the city.

All these not considered is it not more than N1,500!

There are many useful times we waste standing at Oshodi, jogging and chasing a bus.

Anyway, I'm not preaching for anyone to accept my view. It is just my view!
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  #1298 (permalink)  
Old 26th November 2012, 04:46 PM
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Default Re: future of real estate?

Quote:
Originally Posted by Oracle View Post
Hmmm... Taxi is what? In PH, taxi will carry 5 persons. How many will a taxi carry before it becomes public transport. If you tell the guy not to carry anyone cos you can't stand smelly breathe, then he will charge you.

Is 'Okada' a means of public transportation? A keke( a tricyle that carries 3 person) is a means of public transport but a taxi is not.
Your example is priced based on drop, if your friend was to use "along the road" then her costs would be a fraction of your calculation. And as per costs I'm using Naira and kobo only
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  #1299 (permalink)  
Old 26th November 2012, 08:30 PM
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Default Re: future of real estate?

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Originally Posted by Oracle View Post
I have a friend. She works on contract basis. From her house in Woji(PH) to where she works, she takes taxi to around Mothercat,Trans Amadi(PH). They charge her N600 to go and while returning taxi charge N1,000 giving traffic reasons. So in a day(to and fro office), she spends N1,600. This is when she doesn't go out after work or go out from work during break. I know her work schedule. She works all weekdays and 2 weekends every month except on vacation of 1 full month.

If you bought a new car, maintenance will be cheap. it will just be oil change, wheel alignment & free air. This will not cost you up to N10,000 assuming you are using Total engine oil and doing it in Total fuel station. If you do this every 3 months, you will spend N40,000 for maintenance.

After 3 years, you must have spend N40,000 x 3= N120,000 on maintenance.

If you add the fuel cost and maintenance together, you will have N318,000 for 3 years.

How much car did you buy?
Oga sir, I have 2 questions for you..

how come you know her schedule like this and why must everything be done at a Total station? I totally don't understand o
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Old 26th November 2012, 08:55 PM
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Default Re: future of real estate?

Quote:
Originally Posted by hispy99 View Post
Oga sir, I have 2 questions for you..

how come you know her schedule like this and why must everything be done at a Total station? I totally don't understand o
Hispy you dey find trouble ooo. I no fit buy akpeteshi for oracle when kasala burst ooo. Ehen Oga Oracle this one wen you know the babe schedule finish na wao . Oya explain yourself or you buy the babe car .
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