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!

THE CHANGING LAGOS COASTLINE!

Monday

I am not a speaker of doom, only a keen observer of development taking place around Lagos and understanding the nature of buildings and the environment.

Over the weekend there was a surge in the ocean current around the Kuramo beach area of Lagos, which increased water levels and overflowed unto the land. This unfortunately led to loss of lives and destruction of property. There have been many postulations as to why this occurred. Some have laid the reason squarely at the door of the developers of the Eko Atlantic City, who have been dredging and sand filling the area for a while now. Ironically the surge did not affect the development itself

One idea that seems not to have been explored is that there was an earthquake the same day in Indonesia, which may have triggered shocks affecting ocean levels across other parts of the world, including Lagos. It is a possibility!

Tuesday

Driving along the Bar Beach Road, which is now Ahmadu Bello Way in Victoria Island, you could be forgiven for thinking you are lost. For one, you can no longer see the beach from the road and secondly, even if you manage to climb over the heavy boulders that have been put up on the promenade, you still will not be able to see the ocean, it has disappeared! It is quite distressing to see that what had for so long been a beauty spot for Lagosians, has now quietly been eroded by project developers! They claim they are building a city of beauty that will outshine and beat Dubai and Malaysia!? Let us watch…

Wednesday

Am not sure how many people can remember Ikoyi Park? I spent many childhood days in that tree filled park, catching tadpoles and having fun. Well, it is now what is called Parkview Estate/Banana Island. The Park was demolished, the waters sand filled and houses build there. It has become a concrete jungle. I am all for development and progress, but not at the expense of destroying natural god given pleasurable sites. There is really nothing left around Lagos that can constitute a free relaxing day out with children or even adults! What we have now are shopping malls, filled to the brim each weekend with fun seekers eating and spending money.

Thursday

On the topic of sand filling and dredging, I personally fear that will the accelerated rate that this has been taking place on the Lagos Island, in particular the Lekki axis, we are in danger of triggering our on earthquake or tsunami in the not too distant future! Just think about it? Estates springing up everywhere on pure sand filled sites from rivers, lagoon and the ocean. Water penetration into homes has become such a common problem that no one seems to know how to address, short of demolishing the properties.

Friday

Lagos state government needs to take some drastic actions to prevent what could be a problem for homes built on sand filled sites and even dry land surrounding these sites. With the very rapid urbanization and building of estates on every inch of available land, sewage and drainage systems have been blocked or are nonexistent, thereby causing flooding around and into properties or even a backlog or waste into homes. Urgent steps need to be taken, now!

 

Until next week!