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!