WHEN RICH MEN DIE, WHAT HAPPENS TO THEIR PROPERTIES?

Monday

When rich men die in Nigeria, is seems the controversy over their properties lingers for years after their death and sometimes for a lifetime. Whether or not they leave a will behind,in many instances makes no difference whatsover to who gets the proceeds of his wealth. We have heard the stories of prominent families where the children have publicly been at war with one another for many years after the deaths of their fathers. Recently a prominent Nigerian died leaving the family home to his wife in his will. It is reported that the older son has taken up residence there, saying that in their culture, the first male child will take over the fathers property. What then does this make the law? An ass?

Tuesday

The Minister for works has promised that from next year, all construction projects below N5 billion (approx $157m) will be handled by Nigerian contractors with the necessary capabilities! He said that this policy was designed by the Federal Government to help build local capacity and promote local content in the industry and rely less on expatriate companies. He said that over 80% of the of the capital budget of all tiers of government is expended on in the construction and engineering industry, which is dominated by foreign contractors and consequently creating a loss in income for the country. The policy he claims is aimed at redressing the imbalance. We sincerely hope so.

Wednesday

The Federal Government has approved the allocation of N2billion(approx $63m) for the construction of the official residence for the vice president in Abuja!  In 2009 N7.1 billion was allocated for the design and construction of an official residence for the then Vice President. We are not clear what has become of that residence. The new official residence is reported to be contracted to Julius Berger and must be completed in 20 months as the Vice President currently resides in the guest house meant for president’s visits! Also 2.2billion naira was approved to construct an additional banquet hall to host presidential ceremonies

Meanwhile, N1.5 billion was allocated for the development of a rail line and N1 billion for health care facilities! Reporters were told at a meeting that the N50 billion allocated overall for infrastructure development for the FCT was inadequate and further intervention funding would need to be found!?……

Thursday

I had to visit some large estates along the Chevron Alpha beach area, which are still in the finishing stages of construction and still fairly inaccessible due to the untarred roads. What struck me about these estates that have been so widely marketed for years, is how poor the infrastructure and quality of construction is. The completed units have been empty for so long that they are already showing signs of decay due to the proximity to the ocean and the high salt content in the air. The developers are obviously having financial challenges as they are not getting the returns on these properties that they had projected for loan repayments. With so many properties lying empty it makes a mockery of the government policies to build more affordable homes for people

Friday

I got a call from a gentleman who wanted my thoughts on setting up an on-line interactive property site. Whilst I thought the call would be brief, he went into facts and figures, keeping me on the line for at least 20 minutes. I jokingly told him I would charge him consultancy fees, to which he spent a further two minutes laughing. I was certainly amused by his proposition, which is what kept me on the phone for so long, but what was clear to me was that he had not researched the property market well enough to realise that his proposal while having good intentions, may not work in the Nigerian property market, which in reality adheres to no regulations or law. I wish him luck anyway!

OWNING vs RENTING

Monday

Everyone I know in Nigeria wants to own their own home, yet not many can afford to do so. In a country where more often than not, you will certainly have to purchase a home outright or if you are fortunate (maybe unfortunate) enough to get a mortgage, then you spend almost double the purchase amount acquiring a property.

Apart from the actual cost of the property, there are other costs to be factored into the purchase, valuation and survey fees, mortgage fees, estate agents fees, legal fees, transfer fees, all the government tax charges etc. Some people are so interested in building the biggest and flashest mansion anywhere they can get land, they forget that the location may not be best suited for living in. They then find that they cannot live in, sell or rent out the property, due to location constraints.

Research needs to be carried out on area prospects (excluding your home town!) before building, as this may help prevent unfortunate mistakes that will make your property unliveable. Renting may be the best option until you can afford what you really want

Tuesday

On the topic of building in the “wrong” location, I was contacted by someone who had put up a 15 bedroom house which he wanted to use as a small hotel, in the Ogba area of Lagos. He started the project five years ago, and was not able to complete it due to over stretching himself financially. He now wants to sell it for “anything reasonable”?

I have said in past articles, that a property is only worth as much as someone is willing to pay for it. Especially a property built in a swamp area with no infrastructure around it.

Wednesday

It is almost the end of the year and the much promised 265 days of rain we were told to expect by the environmental agencies earlier in the year, did not arrive ( maybe it passed over Lagos!). Of course there has been the odd day of heavy rainfall, but nothing compared to last year’s flooding. The Harmattan season will soon be here and we can forget about rain for a while. Temperatures have been so high recently, hitting 32-34c most days, with humidity rates overwhelming. It makes it difficult to work or be outside. Viewings have to be conducted early morning or evening, to prevent heat stroke.

Thursday

Another building collapsed in Lagos, killing the only two daughters of an elderly mother. At the time of writing this the mother was recovering in hospital, but has not been told her only children have been killed! It is a travesty that is played out daily. Unqualified builders build properties that do not stand the test of time, collapsing one day and killing inhabitants. Who is held responsible? The owner of the property? The builders? Or the regulatory agency that passed the building as safe? In most instances none is held responsible and the surviving family members are left to mourn and foot the cost of their loss.

Friday

New residential estates are springing up everywhere in Lagos! Small, medium, big, serviced, unserviced, accessible, inaccessible, well built, poorly built, semi-affordable, very expensive (quoted in $ only), furnished, unfurnished. I could go on, but I am sure you get the drift.
This clearly highlights the need for good quality maintenance of these properties. It is sadly an area that is lacking and needs more input and expertise. A lot of good estates are built, but over a year or two, you begin to witness deterioration in the infrastructure. Facilities management has a long way to go

LAGOS IBADAN EXPRESSWAY SAGA

Monday

Hallelujah!  Superb news today, the Federal Govt has terminated the contractors who were to have repaired the Lagos Ibadan Expressway from May 2009 for 25 years under a design, build, operate and transfer (DBOT) scheme.

For many years that stretch or road has steadily gotten worse causing numerous accidents and loss of life. The 105km expressway is the busiest in the whole of West Africa. Each time I have to ply that road, I have prayed every step of the way. It is a living nightmare. The road is crater ridden, with thousands of oil tankers dangerously parked on the sides of the road. Armed robbery is a daily occurrence. It has become a health hazard and this news could not have come sooner. Well done Fed Govt, I hope many more much need infrastructural repairs will be undertaken to lift the country out of this quagmire of decay, it has fallen into
The contract has been deservedly allocated to Julius Berger and RCC Nigeria Ltd. I know it will take some years to be completed, but we all look forward to some sanity on that road henceforth!

Tuesday

Someone called me today to visit what was previously a hotel, but the owner wanted to turn the 40 room hotel into one bed self contained accommodation for, young people, singles or short stays. This is the third such request I have received in the last two months. It appears that some hotels are folding up due to management issues and the owners want the hotels converted to short stay accommodation. What the owners need to be aware of is that the facility management of this type of accommodation needs to be reliable and immediate. Things like generators cannot afford to break down and have long down times. Security and cleaning need to be top notch! There is no need seeking clients if the facilities are run down.

Wednesday

The Lekki-Ikoyi link bridge that is being built by Julius Berger is approaching completion and is a beautiful sight to behold especially at night when it is lit up. It is a vast improvement on the landscape and surrounding squalor that we are accustomed to seeing. The Government should contract out all the road and bridge building works to Julius Berger. From what I gather the Third Mainland Bridge, despite being shut for repairs for four months, still has a repair problem.

Thursday

The talk on power privatisation seems to be a recurring subject that is not going anywhere. If anything, power supply seems to be more elusive now than at any other time. It appears that from the day after the resignation of the last Power Minister, the power supply to the whole nation dropped by 80%. The cost of diesel has once again risen as demand is high.

Friday

Every day we see different figures and deadlines put out by the Federal Government for the increase in megawatts of power. In 2009 we were to expect 6000mw by that year end, instead it dropped to 2300mw. In 2010, we were told to expect 10,000mw, it never rose beyond 2,500mw. In 2011, we were again told it will go up by year end, again nothing. In 2012 we saw an improvement between June and September to about 5000mw. It now seems back to the original 2,300mw. We are again now told to expect 10,253mw by December 2013…

RESIDENTIAL ESTATES NO LONGER SAFE HAVENS

Monday

In the last few weeks, no less than 7 large gated residential estates in the VI and Lekki areas including private homes have been invaded by armed robbers. This then begs the question everyone has been asking, why are we paying for security guards, if they are not effective in providing security for our homes?  Last week, the biggest private estate in Lagos, had armed robbers enter the estate, it was alleged that a security guard was shot and killed, but all other information has been sketchy. What is interesting is how the power of social media came into play. Within seconds of the the attack, blackberry, text and whatsapp messages were being delivered to thousands of phones. I was with a friend whose husband was on the said estate visiting a friend, when the message came in on my phone. He left the estate immediately my friend called him, but because the estate has closed its gates in a ploy to trap the robbers, no one was able to get in or out for at least three hours.  The robbers were not found, although security on that estate is now tighter than it has ever been.

Armed robbers are now venturing into previously safe havens, like gated estates and quiet upscale residential areas. Nowhere seems safe any longer. Estates are now employing the use mobile policemen, who carry loaded guns and patrol the estates. God help us all!

Tuesday

The media was awash today with pictures of the damage and injury caused by last weekend’s armed robbery gun fire frenzy on some estates along the Lekki Expressway. A resident was mistakenly shot 5 times by policemen who arrived after an hour after a distress call had been made to the local police station. The police armoured van that arrived at one of the estates, came under a barrage of machine gun fire from the armed robbers. Residents on estates are now worried that there seems to be no security available for them, either from the security guards or from the police.

Wednesday

The Lagos State Government has asked all property owners whose properties are located along major roads, to ensure they are repainted and repaired before the Christmas holidays. This is probably a means to ensure the environment looks neater and cleaner than it does at present. There is a severe lack of maintenance of buildings, every here in the state.

Thursday

The Airport road in Ikeja, has deteriorated so rapidly and badly, that it is now a danger to vehicles plying that road, especially travellers going to and from the airport. The airport is a window into the country and says a lot to visitors coming into Lagos for the first time. Urgent attention must be given to repairing the road and clearing the oil tankers on parked on the road.

Friday

It is quite depressing to hear that there is a deficit of 17 million affordable homes in the country. I am sure that the figure is much higher than this, if one was to look at the number of family members or friends, who are permanent visitors in other people’s homes. This issue was raised at the recent Housing Summit conference, held in Lagos this week. There is no real incentive from the Government to help push forward the policies and funding for this sector.

Mortgage institutions are not lending, and in the few instances they do, the interest rates are over 20% and not sustainable, therefore leading to a vicious cycle of non repayment of loans and banks withholding affordable mortgage packages. There was a call for the government and stakeholders to ensure the implementation of the newly approved National Housing Policy document.

HURRICANE SANDY IN LAGOS

Monday

The Lagos State Government has warned residents to prepare for the ripple effect of Hurricane Sandy which devastated parts of the Caribbean and East coast of America recently. We have been warned that in one to two weeks it may arrive here causing flooding or ocean surges which may affect residents along the Lagos coastline. The areas that may be affected include, Kuramo, Oniru, Alpha beach.

If at all we do feel the after effect of the hurricane, it will certainly not be on the scale that it affected the US, where we saw houses razed to the ground, loss of power and and terrible flooding. Even though they were not prepared for it or do not often witness such destruction, they have dealt with it competently and almost every one affected is rehoused with power restored. On the other hand, we in Lagos frequently experience loss of power and flooding, yet nothing much changes and those affected just get on with it as best they can.

Tuesday

I got a call from a client who wished to renew his lease but, was not able to because that landlord and his wife were quarrelling and individually kept putting pressure on the client to pay the money to themselves. At the on start of the tenancy, the rent had been paid to one of them, but now the other party was demanding that it be paid to them as they were the rightful owner of the property. This confused the tenant who wanted to continue staying at the property, but not be in the middle of a domestic dispute which may affect his stay.

Luckily, one party has backed down, the rent paid, and hopefully the tenant can continue his tenancy in peace

Wednesday

On my way to view a property, the car entered a pot hole covered by water and got stuck. This is the third time in as many years that this has happened and is a frequent occurrence on Lagos roads. Luckily some kind hearted passerby’s used their God given man power to push the car out and send us on our way.

Thursday

A client contacted me, as there was a leak into his flat from the flat above him destroying all his personal belongings. He did not know how to deal with this as the other tenants was denying responsibility. Home insurance is very important to protect buildings and properties, unfortunately majority of tenants and homeowners do not have any and instead rely on luck to prevent unforeseen problems. There is a saying that “God helps those who help themselves”

Friday

There is an ongoing land dispute on the island which is quite theatrical to say the least. The Criminal Investigation Department (CID) unit of the police force has been invited to look into the case. It involves a traditional ruler (Oba) and a Chief. The Chief bought a parcel of land about 15 years ago, which he sand filled and started building the foundation for some properties, but ran out of money. He decided to sell the land to someone else about 5 years ago. Recently, there was some vandalism on the land, which revealed that the Oba who wanted it for one of his wives, was responsible.

The police have looked into the matter, invited both parties in and asked the Oba to “settle” the owner of the land

ARE WE BUILDING FUTURE SLUMS?

Monday

There are estates being developed on the outskirts of Lagos and within the Lekki expressway axis that are already showing signs of distress. A few years ago there were communities along the Lagos Ibadan expressway that were touted as the next big investment opportunity since Dubai real estate development. Plots of land were being sold for as low as N250,000.00 with payment plans arranged. It all seemed just too good to be true. These estates were advertised as having infrastructure like tarred roads, running water, security and dedicated transformers for electricity provision.

Some who had always wanted to get on the property ladder but never thought they would be able to afford it at the rate of property price increases, saw this as their opportunity to build a home for their families. Investors bought numerous plots, thinking they would sit on it till prices appreciated, then sell them at a fantastic profit.

What do we have years down the line? Sold out plots with no infrastructure provided, no maintenance, pot hole ridden dirt roads that flood when it rains, no drainage, no running water, residents at the mercy of armed robbers, electricity a long forgotten dream, and to top it all, residents are learning that the plots they bought, may not even belong to them afterall as there is a dispute over landownership and they may have to re purchase their plots all over again! Residents have appealed to the relevant government offices to step into this matter, but no clear answers are being given. Their dreams have crumpled like a pack of cards. The future for these estates is not good at all; already they have deteriorated into slum dwellings at best.

Tuesday

It is sad to see that disputes over land and property sit in courts for years despite receiving titles and deeds from government agencies. Going about buying land the “right” way, unfortunately seems to offer no protection against your land being taken over by someone else. Buyers need to be cautious and try not to buy land directly from land owners unless a genuine Certificate of Occupancy is produced.

Wednesday

It is crazy that some developers would rather cut corners than employ legitimate professionals to construct their properties. Some go as far as employing artisans from the villages who are not as expensive as the city professionals and do not have a clue on safety measures for construction, electrical wiring and plumbing. Unfortunately this only results in the construction of properties no better than village huts.

Thursday

A lot of properties in the Alpha beach area are  falling in value due to the ocean rapidly encroaching on to the surrounding land. Owners of properties that sprung up in the last 5-10 years and had been doing well in terms of sales and renting can only sit back and watch helplessly as the ocean creeps up to their door steps. This has been in the media constantly with the government officials for waterways and environment making numerous visits to the area and promising that measures will be taken to stop the encroachment, yet nothing has been done! No one wants to buy there anymore.

Friday

As we all know security in our homes and in general is a big issue in Lagos and the country as a whole and some people will take any measure necessary to protect their property. I came across a funny joke about this which I will share.

A security firm receives a phone call enquiring about the varying types of security measures provided?  The receptionist answers saying” please what kind of security would you want installed? We have Voodoo, Remote control, Juju, Charms, Spirit gatemen, Touch and start sweeping, Fall asleep  etc” If you let us know which one you prefer, we will give you a quote….

Continuing lack of electricity and fuel…..

Monday

The intermittent petrol scarcity which started a couple of months ago seems to have gathered momentum as queues at petrol stations seem to getting longer by the day despite the governments assurances that there is nothing to worry about! On the back of this is the misery of persistent power cuts which also seem to be getting worse. Estates are stocking up their diesel supply for fear that the fuel scarcity might hit the diesel supplies as well. I may have to work from home next week if I can’t get petrol for my car.

A survey showed that Nigerians spend about N796.4billion on generator fuel every year! That is approximately £3billon or $5billion. The average generator using Nigerian spends between N200k-N2m a year on personal use of their generator. The cost of running personal businesses is a monumental drain on the profits of that business.

Tuesday

The electricity problem seems to be getting worse daily. The repeated promises of increased electricity provision have all amounted to nothing. There has not been any electricity in parts of Lagos in the last week. Generators are being run round the clock, noise and air pollution are major problems that are not even acknowledged.

Diesel tankers have taken over most of our major roads as storage depots, causing accidents, traffic and damage to the roads. The Lagos Ibadan Expressway and the Airport road being classic examples

Wednesday

The rains have started again and every year without fail causes a lot of setbacks to building works. Of course as I have mentioned repeatedly, this is a good time to rent and buy as it exposes a lot of problems with the property and the surrounding area. Property and road construction works are delayed during the rains, sites and roads turn into rivers and lakes which need digging again after the rains have subsided, gutters overflow into roads and drains and plumbing in homes get blocked. It must seem like a lost cause to contractors whose workers seem to spend more time when it rains sleeping and taking time off with illnesses, thereby delaying further the project handover dates.

Thursday

Going round to a lot of building sites is quite interesting, as works are being undertaken at varying speeds depending on the flow of funds available for that project. For some, works have either halted or slowed down considerably. The ones that are continuing are reviewing their spending on materials and fittings, which in many instances may mean compromising the quality of the finished property. At the best of times it is rare to find a really good finished property, but with these cut backs it will be even rarer to find a fairly well finished property.

Friday

A lot of builders, artisans etc apprentice off workers who in the first instance just picked up the trade from some poorly trained electrician, painter, builder, plumber etc therefore never fully mastering their trade and as a result constantly churn out substandard quality of work which to them is what it should be. Developers are desperate to complete their projects and will often take on these artisans through recommendation from a friend, brother or uncle. The finishing in a lot of properties is as a result terrible; something as simple as fitting light switches is a challenge for these workers as the switches are never aligned properly or straight. Don’t mention plumbing works, which is a major concern of which I have had personal experience, and the misery that shoddy work can cause to the lives of inhabitants.

There is a serious lack of training for these workers which needs to be addressed urgently or else we are at risk of our roofs and walls collapsing around us. More regulation needs to be brought into the property building trade

Until next week

Winning formulae for successful property development

Monday

It appears I may have the answers to the question I posed last week, about why some properties seem to get snapped up immediately and others don’t? Some property professionals explained to me, that the location, good access roads, quality and affordability of the property x affordable services and good security are the winning formulae for a successful property outcome. Added is good maintenance, on site customer service, 24 hour power generation, clean tap running water, effective sewage disposal, and uniformed security

Properties that are being snapped up before they are even completed are on estates that have cracked this formulae, thereby creating a waiting list of clients for future developments by the same developer.

Tuesday

The rapid deterioration of some side roads along the Lekki axis is a cause for worry. In order for cars to use the roads, builders from building sites, use the pot holes to dump all their rubble, so not only are you navigating pot holes, but you are also at risk of sharp metal pipes, nails, barbed wire, jagged concrete slabs and pieces of wood damaging you car. On some of these roads are built the most luxurious homes, with cctv cameras, electric gates, armed security etc with at least 4 expensive cars parked in the driveway. Yet no one sees it fit to do anything about the road outside their gates.

Wednesday

Apartments are springing up all over the place, In Ikeja, Yaba, Ikoyi, Victoria Island down to the Lekki Free Trade zone. A lot of these built on land on which stood single dwelling units. The space for car parking that such dwellings generate, are more often than not, nonexistent, and if available is so narrow that you may not even fit a tiny car in the space provided.

Flats/Apartments are being built without much thought for the demand such multi dwelling units place on the environment. The drainage , rubbish disposal, number of cars using the compound or surrounding roads, power provision, where to site generators and diesel tanks, boreholes, water tanks etc. Serious monitoring of these dwellings needs to take place by the appropriate agencies, before they turn into slums.

Thursday

 About a year ago, I approached a property developer with the hope that he would allow my company to advertise and mange his units. He explained that a friend of his had a property company and had already requested the job and out of obligation he would let him do it. I said I understood and we parted ways. To my surprise, I received a call from this same developer today, asking if I was still interested in managing his property and that he also still had a few vacant units! I was lost for words, but told him I would go and see him to discuss things a bit more. I really want to know what happened to his friend and the service contract he had executed so far. No point in RSG taking on work that has been so badly done, that it will need starting from the beginning again. Let us wait to see what the outcome is

Friday

Once in a while, I have to fly out/into the country and am always dismayed by the state of our airport MMA1. It is a shame that it has the prefix “international” added to it, as it is nowhere near any international standard that I am aware of though it appears some sort of works have started, but it all appears uncoordinated.

I landed there a few days ago and the stench of diesel in the arrival terminal was so strong, I had to cover my nose. The escalators were broken down, some areas were not lighted, the luggage did not start coming out for over half an hour, and when they did, it was at snail pace; the air conditioners were not working. I could go on and on, but I am sure you get the drift

Until next week

THE PROPERTY LOTTERY

Monday
Renting and buying property is like playing the lottery, sometimes you win and sometimes you lose. There is an estate along the Lekki expressway that sold its units for N30m a year ago, they are now being exchanged for N47m! The same units were being let for N1.6m a year ago, and are now asking N3m and above! This particular developer has earned such a good reputation, that his developments are snapped up long before they are even completed. Whereas some other developers have completed units sitting empty for two years or more, having to lower rents, just to attract clients.

Tuesday
It appears that some landlords and developers are stepping up their game a notch and are now improving on the quality and standards of their properties. I have in the last few weeks seen some very good quality developments on serviced estates, and not in the expected “highbrow” areas, but in Lekki and further along the Lekki Expressway! This really does go to show you that people should start expanding their horizons and going further afield to get good quality properties

I know everyone is terrified of the daily traffic gridlock, but, if you want to live in a good safe estate, in a well built and finished home which you can retire to at the end of a hectic day, then it may really be worth spending 15 minutes extra in traffic and going to sleep with a smile on your face.

Wednesday
I decided to follow up on the progress of a development on the island which I had my eye on a few months ago. I drove down there today, only to find it had been boarded up and works brought to a standstill. I called the developer to find out what had happened, and was told all works had ceased until further notice. This is an unfortunate common experience nowadays, with a number of previously buoyant developments, looking like ghost towns, because the developer does not have the finances to finish the works.

Thursday
A client walked into our office today as he had seen our advertisement of a property he was interested in. He was ready to pay for the property there and then, but I insisted he viewed the property first, just to be certain. He went round to the property immediately and said he knew about estate and was prepared to go ahead with the purchase. I contacted the landlord as I smelt something odd going on. The landlord confirmed that three other agents had approached him on behalf of this same client for the same property, and all had fallen through!!

We do come across strange requests in the course of this job. When the client rang me again about wanting to seal the deal immediately, I mentioned to him that I understood he had approached other agents and had pulled out before sealing the transaction? He gave various reasons for this and promised that he was genuine and really wanted the property.

Friday
The desperate client from yesterday contacted us to ask if he could pay one year’s rent and pay the other with a post dated cheque to be cleared in 3 months. We do come across frequent requests for payment of rent for one year instead of the accepted norm for 2 or more years. This may be an area that landlords need to review and come up with stricter Agreement terms for one year rentals and ending the tenancies after that period. Whilst it is easier to manage shorter tenancy terms abroad due to strict regulations, the logistics of this here in Nigeria are more difficult, but need to be considered, especially if the rent is likely to double in one year

AN UNCERTAIN PROPERTY MARKET

 Monday

There are so many views on the property market. I was speaking to a property professional, who is of the opinion that the market has remained the same as last year; another says it is picking up. I personally believe that it is all a risk and you just have to take the plunge whenever you feel comfortable to do so

Banks should inject some mortgage incentives into the property market and reduce the high interest rates which are being charged at the moment, the conditions that also come with them are unrealistic. This high pay back rate is precisely the reason why so many people fail to take out mortgages or to make their existing repayments.

Tuesday

I was surprised to see a block of flats in Ikoyi back on the market after I had been told earlier this year that it had been taken by a corporate client. Apparently the client promised to take all the 6 units if the landlord carried out some remedial works to the apartments before they moved in. The landlord proceeded with the works, and then the clients decided they did not want the apartments anymore! After a prolonged battle with the clients, the landlord had to put the properties back on the market. Landlords should never proceed with extra works requested by clients unless a commitment has been made in writing and a deposit paid.

Wednesday

I have noticed some developers exclude boys quarters in their properties and instead build an extra room within the house, which is referred to as ‘the maids room’ or provide nothing at all. This can be quite limiting if you have staff as there is the lack of privacy on both sides as well as having to install extra security in the house because you have a stranger living with you. It helps when you have a BQ outside the house as drivers etc may need to use the bathroom or sleep over if they have been working late or you travel.

Thursday

On the Lekki Expressway, the VGC roundabout has opened up and the entrance into Ikota Shopping centre has been removed, creating a bottleneck of traffic. People going to Ikota now have to go all the way to Ajah roundabout, which for some strange reason is always gridlocked, and turn to come back all the way to Ikota, wasting so much time. Residents in VGC who need to go to shop in Ikota, which is a few yards away from their gate, have to take a trip to Ajah first. The road works by LCC has caused misery to the lives of residents for years. Some parts of the road have improved, but it is safe to say that the works remain uncoordinated. As for the toll gates, that is a chapter for another day!

Friday

The whole week was spent showing a client a number of properties which did not quite meet their requirements. We finally found one that they said they liked, but was next door to a MFM church! Of course they backtracked very quickly. We found another one which they loved and wanted to make payments immediately, only for the landlord to ring back and say someone had just paid 2 years rent in cash for it. Of course it was disappointing for all of us. This is the market we work with and you never know what is going to happen. It could sometimes take one day or three months to find your ideal property. The search continues!

POOR SERVICE DELIVERY

Monday

I have observed that some estates, collect exorbitant service charges from residents, yet deliver poor or nonexistent services. A lot of management companies on estates respond badly and rudely to residents complaints. Staff on these estates seems to forget that their salaries are being paid for by the same residents that they are being rude to. Residents should also learn to make formal complaints to senior members of the service teams. With a written complaint which must be acknowledged at the estate office, you will “hopefully” achieve some result to your complaint

Tuesday

I had to visit a property that the owner had recently built, stayed in for a few months and wants to sell so that he can live in a company house and concentrate on developing a large plot of land in Lekki. The property was opulently furnished with gold plated taps and four poster beds. He insists he wants to sell the house with the furniture and is therefore asking for a sum of money that cannot be realistically justified. I explained to him that he cannot value the property on the basis that he chose to leave his furniture and decorate it to his individual taste. Selling a house like this is harder than selling empty

Wednesday

The minister for Power, has confirmed that power generation is now at around 5,000mw with a promised increase of another 5,000mw by year end! What has happened? I would certainly like to know. We existed on less than 3,000mwfor years; we now have a promised output of triple what we had. Is the privatisation of the industry working so well?

I know of two estates along the Lekki expressway that have not had any power for at least 5 days. Reasons have been laid firmly at the door of PHCN, who claim they are on strike, so cannot deal with any issues

Thursday

I visited a new medium sized estate of about 200 homes along the Lekki expressway, which is selling its 2-5 bedroom houses off plan and as shell, from N12million. The roads are tarred, the estate is serviced and the completed shells appear fine. Included in the shell are a front and back security door, windows, wiring, plumbing, and plastering the walls. A buyer will need to include all fittings like floor tiles, electrical wall fittings, bath fittings, kitchen fittings, painting etc. For the amount that it is being sold, you can add another 3-5million or more if you want, to have your perfect dream home or as investment. The estate is well laid out and has a management office on site. The first phase is sold out and they are now selling the second phase.

What investors need to make certain is that the legal documentation is air tight and no extra charges outside of agreement requested. Be clear about hand over dates and service charges.

Friday

Another building collapsed in Lagos recently. It was an old building but apparently too much pressure had been put on its already weakened foundations. Tougher legislation is being taken to prevent landlords putting up substandard structures, as well as using the property for fit purposes. There is no point putting up a block of residential units and then using part of it as a printing press or for storage of heavy duty machinery. The building will eventually give way to the weight exerted on it.

Until next week!

TO BUY OR NOT TO BUY

Monday

I get a lot of enquiries about land and property prices and where the best areas for investments can be found. My advice is to do some research on what and where you want to put your money before making any decisions. I can only give my own views which may not be representative of theirs or anyone else’s views. However what I can advice on, is on the cost of land and properties, and the possible sale/ rental income that can be generated from them.

If you are buying land for development, you must first check what type of developments are allowed in that area, is it residential or commercial or is it mixed? What is it you want to build on the land? You must ensure you get your title documents and survey plans. You must obtain land information and check validation of titles from the St ate Land Registry. There are a lot of private land sales that are illegal and dishonest. Buyers beware! It is usually faster to instruct a Lawyer to carry out a search.

Tuesday

Popular areas for land development at the moment include the Lekki Epe Expressway Axis, Lekki Ph 1, Osapa, Agungi, iLekki Ph 2, Ajah, ibeju Lekki and so on. In Ph1 which is nearest to Victoria Island and Oniru, a typical 800- 1000sqm plot will sell for between N60-100million. The rate of development in this area is quite astonishing, as you can daily see luxury apartments and commercial buildings springing up. Rent will typically go from N2-5mill per year for a 2-4 bedroom property.

Further along the Lekki Expressway, developments of small and large estates are taking place in pockets. Commercial developments are springing up fast and furious. One of the largest mixed use shopping complexes in Africa is located along this area. The Ikota Shopping complex contains at least 7000 retail and office units. Located along this axis is also some of the largest well managed residential estates, the further along you go, the more availability and cheaper the land becomes.

Wednesday

I visit a property today where the security is better than Alcatraz! When we build houses, we barricade ourselves in them, as if locking ourselves in prisons and off from the world. I do understand the fear of armed robbers etc, but care and safety should be taken and allowances given for the eventuality of a fire and a route to escape, other than the entrance door.

Thursday

It appears the short period of improved electricity supply, has come to an end. Estates are now seeing an increase in demand for diesel supply once again. It was reported in the news that power generation has dipped following the resignation of the Minister for Power!  What is clear is that our days of epileptic power supply may be far from over.

Friday

I get a brief from a “friend of a friend” who seems to think that he is doing me a favour by asking me to find property for him at an unrealistic low price in a high brow area. I try to explain that this may not be possible, but his response is that he is paying me!?

Until next week!

THE DEVELOPMENT DILEMMA!

Monday

I had to go and see a developer today who had a road construction engineer with him, so I sat waiting for him to finish his meeting. I could not help but overhear their conversation, which had to do with the non completion of projects due to lack of funds.  It is clear that a lot of contractors are blamed for not completing their projects or completing them well, but what I gathered was that this is in many cases due to them not being paid by the various bodies that engaged them, whether at local, state or federal level.

This is a dilemma that is faced by many contractors, both big and small. It was also in the media that contractors may be owed over N100billion for projects they had been awarded.  Often these projects are left half completed, and in the rare instance that the project is completed before payment is received, the contractor goes bankrupt, staff are laid off and he is left with a bad bank loan and ruined name.

Tuesday

Developers are being urged by the government to seek planning information first and obtain approved development plans before commencing their building projects, as there are too many cases of dangerous building structures, which are collapsing on a daily basis. Moreover, these illegal structures are built too near roads, over canals and drains causing blockages and floods. The Lagos State Government has promised that from now on both building owners as well as the professionals responsible for monitoring and approving the projects, will be held accountable for breaches in building regulations.

It is worth noting that recently a fairly large estate towards the Lagos Ibadan Expressway was found to have been built without any approved layout or development plans!

Wednesday

It appears that Old Ikoyi is being transformed into an area predominantly filled with luxury high rises.  There is almost no street that does not have one or two multi storey block of flats. Every day a new one springs up, even more luxurious than the last. We must wait to see if they will stand the test of time. They almost always have swimming pools, gyms or squash/tennis courts (depending on the size of the land). Rent per unit usually starts from $65,000 (N10m) or sales from $750,000 (N120m+)

Thursday

More and more luxury top class international named hotels are being built on the Lagos Island, which is contrary to the perceived state of the economy. Yet if you visit these hotels every weekend, they are filled to the brim with visitors throwing parties, lodging there or just having a good time. Maybe it’s our way of distressing and coping with daily challenges. It would be great to see this amount of money and zeal, poured into building hospitals and schools.

Friday

I understand that it may cost the government about N40bn to roll out the proposed N5000 note? I am not a politician or expert on these matters, but as a lay man who is only interested in seeing some improvement in the living conditions of the ordinary man and our infrastructure, I can certainly do more for the populace with just half a billion! I could build an estate with affordable homes for the ordinary man on the street, serviced and managed by RSG Property Services!  Ahhh, If only wishes were horses…..

 

Until next week!

WILL IMPROVED POWER SUPPLY LAST?

Monday

I received a response to my diary entry last week about the remote possibility of an earthquake in far away Indonesia possibly being responsible for the ocean surge that swept over Kuramo beach recently, from a gentleman who wished to point out to me that Indonesia was not near Nigeria! He seemed to have unfortunately missed the point I was trying to make and that was that disturbances in the earth movement in any part of the world, can cause aftershocks and tidal movements called seismic waves in places far away from the country of its origin. This is a proven phenomenon, and can be checked out for further for proof.

Tuesday

When are we going to get our power provision right? Just as we had started rejoicing about the slightly improved power output and having the “audacity of hope” that we were now emerging out of the dark ages, the Nigerian Electricity regulatory Commission(NERC), has informed us that the increased electricity  output will drop by 300mw after the rainy season!? This is after the Minister for Power had advised Nigerians that we will see a more than doubling of power output to 5000mw by the end of this year! Who do we now believe?

I have postulated over and over again that there is too much at stake in the provision or should I say “non provision” of power. Even the invitation of private companies to take over the running of power generation is not clear. As I write this article, it has just been announced that the Minister for Power, has unexpectedly resigned for compromising his position in the selection of private companies!

Wednesday

A lot of serviced estates have been taking a well deserved rest from their over reliance on generators, as power supply seems to have improved. Diesel prices have dropped and therefore there will be some relief to the pockets of residents who have been groaning under the repeated requests from service providers for more money to fuel the generators, for residents comfort

Thursday

I was invited to visit a small development of eight terrace homes in Lekki1. I was looking forward to seeing the finished product as the construction had started about 4 years ago, but due to financial and other constraints including an incompetent project engineer, the project stalled and was halted for a while.

It has been finished to a good standard, with four ensuite bedrooms. It is serviced and benefits from 24hours power supply private parking, boys quarters, and is being rented out for N3,5m per year. Developing is certainly not a job for the faint hearted.

Friday

The price of land along the Lekki Expressway axis is increasing at a fast rate. A standard plot of land between Lekki1 up to the Elegushi area, is sold for between 25-60m depending of course on the exact area. Whereas five years ago, you could buy a plot of land in the chevron area for 5-10m, this now commands a price of 25-50m.

Even the Free Tade Zone is not left out. You could previously buy land there for 500k, but land owners have wisened up to this fact and are now asking about 4m per plot. Land in these areas needs extra sand filling to build on, as most is reclaimed land. We are bound to see further increases in the near future

 

Until next week!