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Real Estate Investments to Avoid
Investing globally poses its challenges. Despite the attractiveness of real estate, it demands substantial financial commitment. Therefore, after allocating significant funds, it would be unjust to invest in a property that is fundamentally unsuitable. When contemplating real estate purchases in Nigeria, it is crucial to consider various factors to steer clear of potentially troublesome investments.
This article will outline the properties that are best avoided when making real estate purchases.
1. Real Estate with Pending Legal Disputes:
Prioritize confirming the property you are considering has unambiguous and uncontested legal ownership. Steer clear of any property embroiled in legal conflicts, land boundary disputes, or lacking adequate documentation. Acquiring such properties may result in protracted legal disputes or potential forfeiture of ownership rights.
2. Real Estate in Hazardous Locations:
Certain areas in Nigeria may be prone to natural disasters like flooding or erosion, or they may have a high crime rate. Investing in properties in such areas can pose significant risks to your safety and the value of your investment. Always conduct thorough research on the neighborhood’s safety and vulnerability to natural disasters before buying.
3. Properties with Structural Defects:
Inspect any property you’re considering purchasing thoroughly for structural integrity. Avoid any property with visible signs of damage, such as cracks in the walls, foundation issues, or poor construction quality. Investing in structurally compromised properties can result in costly repairs and compromise the safety of occupants.
4. Properties with Uncertain Development Plans:
Before buying property, inquire about the development plans for the surrounding area. Investing in areas without clear development prospects or with uncertain infrastructure plans can hinder your property’s appreciation potential. Additionally, consider factors like accessibility, amenities, and potential future developments that could impact the property’s value.
5. Properties with Environmental Hazards:
Be cautious of properties located near industrial sites, waste disposal areas, or contaminated land. Exposure to environmental hazards can pose health risks to occupants and devalue the property over time. Conduct environmental assessments or seek expert advice to identify any potential risks associated with pollution or contamination before making a purchase.
6. Properties with Outstanding Liabilities:
Before finalizing a property purchase, ensure there are no outstanding debts or unpaid taxes associated with the property. Buying a property with unresolved financial liabilities can lead to unexpected financial burdens or legal complications. Request clearance certificates and conduct thorough financial due diligence to avoid such situations.
7. Properties with Incomplete or Illegal Structures:
Avoid purchasing any property with unapproved or illegal structures, such as extensions, additional floors, or encroachments. Such structures may violate building regulations and could be subject to demolition orders by the government authorities. Invest in properties with all structures properly permitted and constructed in compliance with local building codes.
8. Real Estate in Contested or Unstable Areas:
Similar to numerous countries, Nigeria may encompass areas characterized by ethnic, religious, or political discord. Venturing into property investments in locations susceptible to turmoil or instability can subject you to security hazards and possible property harm. Conduct thorough research on the political and social landscape of the area before contemplating a property acquisition.
9. Properties with Poor Access to Basic Utilities:
Ensure that the property you’re interested in has access to essential utilities such as electricity, water, sewage systems, and internet connectivity. Properties lacking access to these basic amenities can significantly diminish their livability and resale value. Verify the reliability and adequacy of utility services in the area before making a purchase.
10. Real Estate in Declining or Saturated Markets:
Refrain from investing in properties situated in markets witnessing a drop in demand or facing oversaturation. Acquiring property in these markets may pose challenges in securing tenants or buyers, leading to prolonged vacancies or diminished rental yields. Conduct comprehensive market analysis to evaluate the demand-supply equilibrium and growth prospects within the real estate market before finalizing any investment decision.
News
Lagos schedules meeting with owners of distressed buildings.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
News
FG threatens contractors over Enugu-Onitsha road delay
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
News
Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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