Category Archives: Real Estate

REAL ESTATE TAKING OVER OIL-SECTOR

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Changes in the price of crude oil and the resulting currency devaluation have had a significant impact on the Nigerian economy. With a 70 percent dependency on crude oil for external revenue, the drop in world oil prices is affecting the Nigerian business space.

Brickwall Global Investment Ltd reflects on how the fall in Nigeria’s primary source of income will impact the country’s real estate industry as the majority of real estate projects in the country are government-funded, the devaluation of the Naira may result in less available funding for property development. Whilst commercial hubs and larger cities such as Lagos, Abuja and Port-Harcourt are not expected to suffer due to their diversified economies, hence, the development of new properties across Nigeria is predicted to slow down.
“The Thought for both foreign and domestic investors is how long will this recession last; which is currently too early to tell. The question now is whether the low oil prices are here to stay, or whether they will increase again in 12 months.

While the Nigerian Oil Driven economy is being marginalized presently to its low thereby crippling its fiscal and monetary economy and also bringing to a slug race structural developments, Real Investment like Land has proven its viability. It is an asset that posses the sole principal of appreciation with all times.

That is why Brickwall Global Investment Ltd at what we know how to do better “Proffering property solutions”, has come up with a convenient plan on how to be an investor with the little money at your possession. Currently we have developing locations like Ajah, where we have our Mayflower Gardens Estate, Ikorodu, Igbesa, Asaba and Owerri in Prospect.

Take this advantage, don’t knot your financial progress and freedom on the dictates of the economic recession. Be the wise investor with Brickwall Global Investment Ltd. Your Safe and Trusted Hands.

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The Real Estate Agents You Should Avoid

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We have many real estate agents in Nigeria but few credible ones. Hunting for the right real estate agent to handle your real estate transactions especially when you are thinking of selling your house is always an uphill task.

One of the most daunting tasks when you are thinking about selling your house is finding the right real estate agent. In a country where unemployment rates is alarming, it is quite easy to fall into the hands of unscrupulous real estate agents who know less about the profession but quite knowledgeable in the act of swindling and manipulating.

Although, spotting a dodgy real estate agent is definitely not a walk in the park. Here are signs that should indicate that the agent you are dealing with has a hidden agenda.

1. Agents who Offer you an Immediate High Price for your Property

If an agent agrees with you on the price you are willing to give up your property regardless if the amount is ridiculously on the high side or it’s a give-away price without conducting any market analysis, it should arouse suspicion. Though its not a bad idea when an agent first asks for your opinion on the value of your home, it is still expedient he does his own home-work. The agent ought to compare the price you want it to be sold to what’s obtainable in the market and the price of other similar properties in that location. He has to be realistic with you and let you know your house’s worth even if its below your expectations.

2. Real Estate Agents Who are all Dazzle
Though there are real estate agents who are good at what they do and show high level of professionalism, it is sometimes a red herring when an agent talks smoothly and easily wins you over with his/her charm. Let other attributes serve as your yardstick of determining which agent you want to go into business with. Be on the look-out for the following factors:

• Does the agent pay attention to detail? Will they consistently follow through with potential sales leads and relay information back to you?
• Will the agent be available for open houses and buyer inquiries?
• How many sales has the agent managed to complete in the past few months? Compare this number to the amount of listings they have held, and whether or not these listings were in your area.
• Is the agent really a professional in the field or just a wannabe or a rookie.

3. Agents Who Avoid Feedback
No matter how good you think your property is, be aware that beauty only is in the eyes of the beholder; in reality no one has a perfect home/house. If you want to receive the best possible price for your house, you need to be open to suggestions and feedback from your agent. If the agent doesn’t provide you with any suggestions for improvement, this could mean that they will be willing to sell your home at a lower price in an ‘as is’ condition; more like a give-away price. They may also just prefer not to share bad news. Although selling your home at a lower price may be acceptable, an agent should tell you that if you make some adjustments and give your home a fresh coat of paint you could see a 3% higher rate of return on your sale. With a reputable estate agent, you should expect quality feedback about your property.
4. Agents Who Don’t Communicate
To get involved with the right kind of agent for your real estate transaction you must take factors like communication, experience, and ethics into consideration. A honest agent with a good heart means a honest communicator, and you are sure he will be looking out for your best interests. Such agent will lay everything bare for you and present to you the pros and cons of your options unlike other agents that will only tell you what you want to hear.

The aforementioned points should help you avoid tricky and cunning agents who are only after their own gains even if that gain is your loss.

At Brickwall Global Investment Ltd, We take your property business into all consideration so as to proffer the best profit solution.

visit: www.brickwallinvestgroup.org

mail: [email protected]

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Certificate of Occupancy: How to process it successfully

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For any building structure you see, whether a bungalow, duplex, sky scraper or even the foundational stage of a building, the Certificate of Occupancy, popularly called the C of O is what signifies legally that you have interest on the land upon which that property is standing on.

It is a very important document in any land transaction and is issued by the Government to the buyer of the land. Certificate of Occupancy is what makes you a lawful interest holder in the land and it also describes the type of use the land can be put to; commercial, mixed development or residential.

For example, according to the Constitution of Nigeria and since 1978, all land in a state (especially the urban parts of the state) is to be held by the Governor in trust for the people of the state.

This is not to say that we still don’t have people who exercise rights of their own on landed properties. These are called “omo-oniles” in the popular palace. Usually, their holdings are outside the legal frame work and would have to be brought in when you buy or even by themselves before selling if it is to become bankable.

To buy land therefore, you can make your purchase from the “omo-oniles”, Government or some other entity (individual or corporate) who must have earlier bought from either “omo-onile”s or Government.

Therefore to purchase a land, you either buy directly from the government, from individuals who bought from the government or from these so called “omooniles.” In cases where the said land has being a matter of some form of acquisition, you may have to pay the two of them to have access to a land.

At Realty Point, we usually advise that a proper due diligence be done when buying a piece of land because ignorance is not an excuse in law. Whoever you buy from, it is important that you obtain your Certificate of Occupancy where none existed before so as to ensure you secure a perfect title to the land.

To obtain your C of O from the government, you need to

1. Apply for land information and get your land information certificate. To do this, you need to pay an application fee at the Surveyor General’s office and provide a chartable survey plan (2 cloth, 2 paper)

2. Purchase a C of O application form. If a residential building, it’s =N=5,000 but if commercial, it’s =N=20,000 in Lagos State.

3. Fill and submit the application form in Land Use Allocation Commission (LUAC) with the following supporting documents

o Land information certificate

o Receipt for land information fee

o Receipt for application form

o Publication/inspection fee of =N=10,000

o Capital contribution (to be calculated based on size and location of land)

o Land purchase receipt/agreement (duly stamped)

o Copy of current tax clearance certificate (individuals)

o Copy of =N=100 development levy receipt

o Site location sketch

o Four passport photographs of applicant with white background

o Copy of approved building plan (if developed)

o Copy of tenement rate receipt (if occupied) or Land Use Charge

o Cover letter addressed to executive secretary LUAC, stating all documents attached, as above and typed with applicant’s address

o Acknowledgement slip from LUAC

When this is done, a letter of confirmation is issued to the Applicant with a plot and block number and the Scheme Officer processes the application for the Certificate of Occupancy, signs off on the file and forwards the files to the Executive Secretary of LUAC.

This takes a period of five days. After this, the Surveyor General provides Scheme Officer with digitized survey which is processed for two days. The Executive Secretary LUAC approves processing and signs letter of allocation.

He signs off on the file and sends the file to the Senior Special Assistant to His Excellency on Lands. He or she then vets the entire file and sends it with a covering memo to the Permanent Secretary Lands Bureau.

However, if the file has a query, the message is relayed back by notification. This process takes two days also. When the Permanent Secretary is done, he signs off the memo and sends the file to His Excellency who approves and electronically signs the Certificate of Occupancy. these two processes takes a period of four days and should the file have a query, message is relayed back by notification.

Upon approval and signing of the Certificate of Occupancy by His Excellency, He signs off and sends it to the Deputy Registrar for further processing. The Deputy Registrar processes the file further, signs off and sends it to Registrar of Titles for final registration.

The Registrar of Titles then registers the Certificate of Occupancy, signs off and request for its printing. These processes take a total of five days. Altogether, the total process adds to a period of 21 days.

It is worthy of note that in these 21 days, the application is advertised to attract objection or no objections before it is processed.

Kind of tedious wouldn’t you say? That’s why Brickwall Global Investment Ltd is here to take the stress off you!

Acquisition of Land: Since 1978, the major legislation regulating the acquisition of land within the country has been the Land Use Act of 1978 which states that all land in a State is to be held in trust by the State Governor for the benefit of all Nigerians. By law, foreigners may also acquire land wherever it is located in the country from either the State governments or from other holders.

Consent: The issue of getting a property can sometimes be very daunting if you have to think about the stress and many processes involved. First, you have to be sure what you’re buying is genuine and will not be sold to anyone else after your payment except by you.

Deed: A deed, as defined in the dictionary is a signed document pertaining to the ownership or legal rights of landed property. Ownership, legal, rights, property, signed are some of the keywords that stand out here.

Land Titles: The Government of Lagos State headed by Gov. Babatunde Raji Fashola recently announced that land owners in Lagos who have no proper land title should make haste to regularise their title within 6months starting from August 1, 2012 or face the consequences of revocation.

Building Plan: I like to think of building plan thus: Every idea starts with the gift of imagination! However, it has been proven that even the shortest pencil is better than the longest memory. Imagination needs to be captured otherwise it becomes a thing of the past.

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How You Might Consider Purchasing Your Real Estate Investment Properties

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There are several ways to buy your first real estate investment. If you are purchasing a property, you can use debt by taking a mortgage out against a property. The use of leverage is what attracts many real estate investors because it lets you acquire properties you otherwise could not afford, but it can be dangerous because in a falling market, the interest expense and regular payments can drive you into bankruptcy if you aren’t careful.

You will almost NEVER purchase a real estate investment in your own name. Instead, for risk management reasons, you will want to consider holding real estate investments through special types of legal entities known as limited liability companies or limited partnerships (you should consult with a qualified attorney for his or her opinion as to which ownership method is best for you and your circumstances). That way, if the real estate investment goes bust or someone slips and falls, resulting in a lawsuit, you can protect your personal assets because the worst that can happen in some circumstances is you lose the money you’ve invested. This lets you sleep at night because unless you’ve screwed up somewhere, your assets, investment, and other retirement accounts should be out-of-reach.

Property Investment company like Brickwall Global Investment Ltd, can manage your property investment portfolio to any limit.

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The 4 Ways Real Estate Investors Make Money

When you invest in real estate, there are several ways you can make money:

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Real Estate Appreciation: This is when the property becomes more valuable due to a change in the real estate market, these changes can be subject to environment, weather, economy up or downturn, structural development, government policy, the land around your property becoming scarcer or busier such as a major shopping center going in next street, or upgrades you put into your real estate investment to make it more attractive to potential buyers or renters. Real estate appreciation is a tricky game and is riskier than investing for cash flow income.
Cash Flow Income: This type of real estate investment focuses on buying a real estate property, such as an apartment building, and operating it so you collect a stream of cash from rent, which is the money a tenant pays you to use your property for a specific amount of time. Cash flow income can be generated from well-run storage units, car washes, car parks, apartment buildings, office buildings, rental houses, and more.

Real Estate Related Income: This is income generated by “specialists” in the real estate industry such as real estate brokers, who make money through commissions from buying and selling property, or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property. For example, a hotel management company gets to keep 5% of a hotel’s sales for taking care of the day-to-day operations such as hiring maids, running the front desk, mowing the lawn, and washing the towels.

Ancillary Real Estate Investment Income: For some real estate investments, this can be a huge source of profit. Ancillary real estate investment income includes things like vending machines in office buildings or laundry facilities in low-rent apartments. In effect, they serve as mini-businesses within a bigger real estate investment, letting you make money from a semi-captive collection of customers.

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