Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts

Thursday, April 10, 2014

Best Cities To Invest In Real Estate In Nigeria and Why?


This really is some some questions posted if you ask me by among my  subscribers which I is going to be writing on and sharing with you. You can find different factors which will determine the profitability of one's investment in Real estate.

 
1) Number one is demand-The rate of demand will have to come first  before any other considerations , a lot of reasons will make people to migrate to a place, mainly for economic reasons . In Nigeria three cities will come into mind Lagos, Abuja and Portharcourt.



2)Accessibility to a town can also determine the real estate growth in a city. This is why towns in Bayelsa state may not attract real estate growth despite being very rich in oil.

3)Availability of land and materials will also affect real estate growth though this is not as important as other considerations.

4)Cost of Construction in a place. Where materials and cost of  construction is low and accessible then real estate will likely thrive in such places.

5)Capital generation of a town will also determine how real estate will thrive in such areas.



6)Increase in economic growth will also make real estate to be attractive in a town.

7)Influx of human traffic to a place will definitely drive real estate.

8)Attraction to investors will also determine how real estate will be profitable in a town.

9)Absence of good residential buildings will make the good and new ones to be very desirable to the populace.

10)Availability of mineral resources.

11)Availability of infrastructural resources.

12)Availability of transportational resources like airport, train stations sea port e.t.c

13)Availability of communication facilities.

14)Good government policies and regulations-Lagos and Abuja will come
to mind in this case, recently houses are being demolished in lagos
because of improper government permit before construction. New investors are now more careful and afraid to build because of fear of demolition.
Getting the permit on itself is very difficult at present because of the bureaucracy involved.

15)Availability of natural resources.

16)Is the town transitory? Hotel will be good for such areas.

17)Does it have plenty of government parastatals? with this you can be sure of growth in such area.

19)War and trouble will definitely affect real estate negatively.

20)Good climate

Going by the points stated above,Abuja, Lagos and Portharcourt will  beat the rest in Nigeria, but they also have advantages and  disadvantages too. Abuja is good for hotels, for low income earners you
can build hostels as common in Europe. Political meetings will always  be held in Abuja and anytime there is a big programme the hotels are  always completely booked.

But Abuja has developed to a very high rentage zone and total separation  of the rich neighbourhood from the poor neighbourhood will at the long  run not help the real estate industry there, that is why there are uninhabited  houses yet people are going far to the suburb to live in slums. But in  Lagos, in every rich area, very close by you will see poor neighbourhood  zone, this helps to create spillovers from rich neighbourhood.
So if you are an investor you can just get properties  close to these rich areas redevelop and clean up the place then you can  have the affluence of your neighbour rubbing off on the properties in the poor neighbourhood though very close to the rich.

Lagos has very high rate of human traffic and influx of graduates from  other states will always make it very attractive for real estate,  Portharcourt despite the kidnappings is the unofficial capital city of  Niger Delta the oil rich region, so expatriate are always attracted to  the place, there you are sure to make very quick and profitable investment.

In conclusion, economy is the chief driving factor of a real estate
investment in an area and for Nigeria ,Portharcourt and Lagos towers
above the rest.

Source

Wednesday, August 21, 2013

Nigeria: FG commends Rivers over land donation for housing scheme

WorldStage Newsonline—The Federal Government of Nigeria has commended the Rivers State Government for donating over 10 hectares of land to enable it execute one of its housing programmes.
The Minister of Housing, Ms Amal Pepple who said this when she inspected the parcel of land in Iriebe, Obio/Akpor Local Government Area of the state stated that “we are very happy to have this collaborative effort because I am not happy that I have not really done anything in Rivers state.”
Pepple who was accompanied on the inspection tour by the Rivers State Commissioner for Housing, Mr Marshal Uwom also said that with the land, she could now put the stamp of her ministry ”which is the stamp of President Goodluck Jonathan in housing in Rivers state because it is his government and we are all working and ensuring that whatever he wants to do, we do them.”
Continue After The Break...

Achieving Sustainable Development Through Affordable Housing

 The damning 17 million housing deficit in Nigeria obviously has had negative impact on the nation’s economy. In the years ahead, there must be deliberate and sustainable plan to bridge the yawning gap and get the citizenry composed for economic activity to thrive in the country. This can be effectively done through implementation of robust housing policies. GEORGE OKOJIE writes

For over 25 years, managers of the housing sub-sector of the Nigerian economy drawn from both the public and private sectors have tinkered with the idea of providing mass housing for the people. But the profligacy of successive government officials deployed to handle the sector and obvious failure of leadership has made many Nigerians to dismiss the new National Housing Policy as another effort in futility.

This loss of confidence arose from the fact that the government has failed to realise that housing does not only satisfy the basic human need for shelter, but it is a key component of economic growth and development and forms a substantial part of the Gross Domestic Product (GDP) of most developed countries.

LEADERSHIP Sunday investigations showed that, though Nigeria succeeded in churning out good policies in the past, its blueprints hinged on three main pillars of guaranteeing well-being and productivity of the people, provision of single digit mortgage and fostering sustainable and enabling environment for the private sector to operate optimally was never implemented.



Implementing The National Housing Policy

Interestingly, at the inauguration of a committee constituted by the Federal Government to produce a National Housing Policy for the country in 1985, the then Minister of Works and Housing had said, “Government plans to take positive steps to ensure that the less privileged members of the society, including the wandering psychotics who require confinement and rehabilitation, have access to dwelling houses.”

In developing the blueprint that was to drive that template, the technocrats were said to have paid attention to the need for the provision of mass housing in a decent, safe and healthy environment with infrastructure provided at an affordable cost. of ordinary Nigerians with shanties and slum conurbations becoming more pronounced in urban centres of the country.

In the face of UN-Habitat estimate of housing deficit of 17 million units in Nigeria, experts and stakeholders in the nation’s built environment are of the view that there is urgent need to think outside the box for a viable operational model for the National Housing Fund (NHF) scheme to succeed in Nigeria.

According to Okika Ekwem, a United States-based realtor, the federal government needs to come in, look at what is happening in other civilised world and test-run the model. He advocated the operational model of America’s Federal National Mortgage Association (FNMA) popularly known as Fannie Mae. Fannie Mae, he said is the US equivalent of Nigeria’s NHF, saying the huge success of the mortgage industry in America is traceable to its efficient operations mainly as a secondary mortgage institution.

He said “In the civilised world, there is a secondary market for real estate financing where commercial banks or individual brokerage banks lend money to people and thereafter sell the securitised certificate to the secondary market and come back again to lend to individuals”. The realtor added that the US government usually chatters bigger financial houses that buy off these securitised mortgage notes from the banks and are a bit insulated such that even where people fail to pay, they are assured.

On the way forward, the Head of Dipo Fakorede and Co., a firm of estate surveyors and valuers, Mr Dipo Fakorede noted that though the nation has one of the best housing policies in the world, it lacks the ability to implement the policies. In his words, “Government needs to play its role with the establishment of primary mortgage institutions. What they do abroad is that once you are 18 and working, you have access to mortgage, which you pay over a number of years. But here, you have to get land, pay contractors and build, that is the why property value continues to rise.

“The primary mortgage institutions must be in place for people to have access to mortgage facilities. Government must also build houses; they have good housing policy, which they never implement. Private sector operators are doing their best but we are all out to make money.

“As a businessman, when I develop houses, I will want someone who will buy, give me my money and I move on. But even in the private sector, the problem there is finance. Housing is capital intensive; you need a lot of money when developing houses. So, the government must come in to peg the interest rate and then people in the private sector will be fully involved. And the government should be sincere in terms of providing the enabling environment.



Harmonising All The Parameters

“All the parameters for developing housing must be brought down in a friendly way. Cost of land is expensive, especially in Lagos. If you want to build terrace houses, for instance, you will need a land of about 2, 000 square metres and you should automatically have about N250 million if you wish to acquire that. Then, you talk about approval and then you may be spending about N800 million at the end. So, how many years will it take you to recover your money if you are doing a mortgage arrangement?

“Government must come in, create enabling environment and give a chunk part of the budget to the housing sector so that there will be mass housing development and prices of houses will go down. Let them also make provision for workers to get mortgages for 15, 20 or 30 years depending on their ages, which is the way it is done”.



Legislating Lending Rates

The views of Mr Adeniji Adele, a frontline estate surveyor and valuer is not different from that previously expressed, except that he  told LEADERSHIP Sunday that  there is need to do something about the country’s faulty legislation which is one of the things frustrating effective funding of housing projects. Adeniji pointed out that the way out is for the legislative arm of the government to put in place an Act to reduce lending rate by mortgage and banking institutions.

“This will further reduce the risks associated with lending funds on the basis of real estate “Mortgages”. In addition to the above, the legislatures should legislate to ensure the following:  Single digit rate for mortgage for a term of between 15 to 25 years; Use of property pledged as security for loan should be well appraised; and due diligence should be carried out on the borrowers.

“Title to the property should be checked. Bureaucracy in getting government approval or consent on land matters should be reduced; if government could embark on provision of infrastructures and facilities, it will spur the development of even more remote areas even if only for use of tourists.

“As incentive to private developers, Government should negotiate with them on the provision of infrastructures so private developers will not be speculative on the provision of infrastructure and uncertainty over the conditions of infrastructure by both parties”. The lack of a robust mortgage financing system in Nigeria has made the rate of home ownership in Nigeria one of the lowest in Africa.



Nigeria’s Poor Home Ownership

Apparently disappointed about the housing provision in the country, the Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Mr. GimbaYa’uKumo, said recently at a public forum that the country’s homeownership rate of about 25 percent is much lower than contemporary countries.

He juxtaposed the nation’s abysmal homeownership rate with countries such as Singapore 90 percent, Indonesia 84 percent, Kenya 73 percent, Benin Republic 63 percent, South Africa 56 percent and Libya 41 percent while that of the United States is put at 70 percent. He explained that mortgage credits account for less than five percent of total lending portfolio of Nigerian banks and just about 13.5 percent of mortgage lending by primary mortgage banks (PMBs).

The mortgage finance expert said, the Central Bank of Nigeria (CBN) supervision report 2008 reveals that 90 percent of housing developments in Nigeria are self-financed through personal savings for periods upwards of 10 years. He pointed out that housing not only satisfies the basic human need for shelter, but it is a key component of economic growth and development.

“The supply gap for low and middle income groups is huge, reaching a crisis level in some cities in the country, which is heightened by the rapid urbanisation of the population.” He noted that the World Bank has predicted that the housing problem in Nigeria will become even more acute, resulting in a housing crisis by 2020 if adequate measures are not taken,” he added.



World Bank’s N48bn Facility

Ya’uKumo said in line with its mandate, the bank has been mobilising domestic and foreign funds into the housing finance sub-sector, while also collecting and managing the NHF in accordance with the NHF Act for the purpose of providing affordable homes to Nigerians. He said the $300 million, about (N48 billion) liquidity facility from World Bank for the overhauling of the nation’s mortgage sector will soon be ready to enhance sustainable housing finance in the country.

President Goodluck Jonathan has continually said his government is taking steps to address the housing needs of Nigerians, saying the on-going restructuring of the Federal Mortgage Bank is geared towards making home ownership easy in the country.

According to him, “The Federal Mortgage Bank is being restructured to meet the demands of the sector, especially mass housing.  In addition, the Nigerian Mortgage Refinancing Institute is being set up with the aim of revitalising the nation’s mortgage financing institution with a $300 million liquidity support from the Word Bank. “It is expected that this programme, which will be launched this year, will enhance the level of financing available for mortgages across the country”.



Way forward

President Jonathan has emphasized that government places high premium on provision of affordable housing for Nigerians adding that accommodation is one of the strategic imperative for guaranteeing the wellbeing and productivity of every person. It is believed that for Nigeria to achieve sustainable housing for all, a new thinking cap need to be put on by those saddled with the responsibility of implementing the national housing policy.

Also, the legislature, banks, private developers, primary mortgage institutions, civil society organisations, private sector players and concerned Nigerians need to rise to the occasion to ensure that every Nigeria can afford as well as well find the modalities for accessing loans to build their homes easy and palatable. If all Nigerians find it easy to secure housing loans and own their homes, experts believe the country will be in a better stead to achieve the United Nations Million Development Goals (MDGs) as well as the Vision 20-2020 much faster.
Source

Thursday, August 8, 2013

Stakeholders see future in real estate market, decry high cost of housing

Beyond the current 17 million housing deficit in the country, operators in the real estate sector of the nation’s economy have said there is hope for affordable housing in the nearest future.
They, however, expressed sadness over rising cost of housing, especially the government-built houses.
The view was expressed in Lagos on Thursday at ‘Real Estate Market Review and Projections 2013’ by Roland Igbinoba, president/CEO, Pison Housing Company; David Kpue, Ag. general manager, Federal Housing Authority (FHA); Femi Johnson, president, Mortgage Bankers Association of Nigeria (MBAN); Kayode Omotoso, executive secretary/CEO, MBAN; Tony

Monye, chief economist, Access Bank Plc; and Kojo Addo-Kufuor, COO, Ghana Home Loans, Ghana.
Giving an overview of the real estate market, Igbinoba said the sector faced a lot of challenges last year which ranged from infrastructure, funding, capacity building to high interest rate.
According to him, “Although funding is critical, there are a whole lot of other factors. If you bring in multi-million naira into the real estate market, it does not mean the problem of the sector will be over. But I think capacity building is a major challenge.”

He commended the Central Bank of Nigeria (CBN) for ensuring the stability of the exchange rate, adding that political stability in the country has, to a large extent, impacted positively on the
real estate market.
Igbinoba noted that there are good opportunities in the sector despite the seeming tough times.
“The market is tough, no doubt, but developers must be able to take the risk to invest in any category of the real estate they wish to involve in. The outlook for the market is good for 2013. The Nigerian environment does not know how to support your business, but it knows how to handsomely reward you,” he said.
In his presentation, Tony Monye, who spoke on ‘Global Economy and Real Estate Market/Macroeconomic Analysis of Real Estate Investment in Nigeria’, compared the local market with what goes on in the United States, China and Europe.
According to Monye, those nations were yet to fully re

Source

Monday, July 1, 2013

Lagos Property: NEW 4 BEDROOM DUPLEX WITH BQ AT BUENA VISTA, LEKKI



NGN 1,500,000  Bedrooms : 5Bathrooms : 5
Buena Vista Estate  By 2nd tollgate View MapSize (m2) : 600Year Built : 2012
Code : Well secured estate - AvailableLot (meters) : 18 X 36
Description
FOR RENT: Brand new and superbly finished 4 bedroom duplex with BQ at Buena Vista Estate, Lekki - Lagos.

FEATURES:
- All room ensuite with ensuite boysquarter
- Very clean property
- Serene and secured estate
- Clean and constant water supply
- Stable electricity supply
- Very close to second tollgate, after Chevron roundabout
- One year rent acceptable

Rent: N1.5m per annum

For further enquiries/ arrangement for inspection, please contact:

BLUEHEDGE REALTORS
+234-1-7605148, 08023224585, 08032065685, 08051956996
info@bluehedgerealtors.com
www.bluehedgerealtors.com

Nigeria Senate claims to focus on affordable housing



The Vice Chairman, Senate Committee on Property and Metropolitan Progress, Senator Gbenga Ashafa, has certain Nigerians that attempts are being built to produce the country's structure business with specific concentrate on inexpensive housing.
Ashafa talked during the 57th Annual Standard Conference and Structure Market Exhibition of the Federation of Structure Market in Abuja recently.
The News Firm of Nigeria reported that while declaring the three-day exhibition open, the senator emphasised that structure, unlike simple buying and selling, required a lot of homework, dexterity and perseverance
He said, “It is important to state here that the Senate, through their Committee on Property and Metropolitan Progress, is working hard to bring concerning the much needed development in the structure business in Nigeria, particularly the provision of reasonable and inexpensive houses for all Nigerians.
“All of us know that shelter is one of many three physiological wants of man without which man can not purpose efficiently and effectively.”
Ashafa also prompted stakeholders to always take advantage of the best components in creating construction.