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!