Tuesday, December 4, 2012

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

No comments:

Post a Comment