General Posts

1
Some Challenges Developers’ Face in the built environment
2
When Is The Right Age To Buy A House In Nigeria?
3
The Importance of ‘Grounding’ Electrical Currents in Houses
4
Mistakes to Avoid When Building a New Home
5
Benefit of Buying a House During Recession
6
The Four Phases of the Real Estate Cycle.
7
Five Thing to Look Out for in a Rent Agreement
8
How to Buy and Sell a Home at the Same Time
9
Why High Property Prices in Abuja?
10
The Hutbay Team at Demo Africa 2014

Some Challenges Developers’ Face in the built environment

Here are the some challenges developers’ faces in the built environment

  1. The issues of Omo-onile: You have to part with a lot of money to get land and be able to use the land. If it’s a country where the government has got full control according to the 1978 Land Use Act, we would get assistance from them as partners whereby they provide the land while we provide the houses. If we can get the cost of land out of the budget of housing, we would be able to sell them at a very reduced rate. But in a situation whereby we have to pay for the land, taxes and what have you, I’m sorry we can’t have the affordable housing we wish for.
  2. Getting good people to work with: People are difficult to work with. A lot of them don’t want to work but want to get paid. To get the right people has always been difficult. A wise man once said you must earn your keep and keep your earn. There are still good people though. It’s just difficult to get them
  3. Contending with economic policies: This is a big task. The government sometimes come up with policies that could send you back to your village but you have to be able to manoeuver your way around it and still find a way to comply. Some of these policies have killed so many businesses but nonetheless, the government still tries to introduce policies that would favour us. Although, most of the policies they came up with so far have crippled our businesses.
  4. Funds: For instance, a house that you ordinarily want to sell for 40 million naira will have to be sold for as low as 20 million because you need off-takers to kick-start the business. When you get the money, you don’t look at the margin, you just want to build and deliver. At the end of the day, you would have lost a lot of money before you start selling at the original price.
  5. Infrastructure development: In a situation where you have to provide your roads, drainage, poles, strings, transformers, light etc. there is no way you can regulate your price. Infrastructural development is a huge burden which has really affected this business a great deal because if you don’t have what it takes to provide all these, you will be out of the business
  6. Trust: Trust has been abused by many developers. There are a whole lot of Nigerians in diaspora who wants to come back home and invest but they have been swindled by families and relatives. Their trust has been betrayed and they have become so hard to convince.

Image source: www.naij.com

When Is The Right Age To Buy A House In Nigeria?

At what point in life should an individual begin to consider acquiring a land and building his first house? Buying a house, is one of, if not the most significant investment most people make in their lifetimes.

The phrase ‘The sooner the better’  is often being thrown around in a lot of steps we take in our lives. But, this phrase could confuse a potential real estate investor. On one hand, those in their mid-20s to 30s are sometimes encouraged to consider the option to buy a house due to the availability of spare money, while on the other hand, those in late-40s or early-50s consider real estate as a liability of a lifetime.

However, it is wise to recognize where you are in life and you financial capabilities as you decide whether or not to buy.

Read More

The Importance of ‘Grounding’ Electrical Currents in Houses

Proper electrical grounding is one of the easiest ways to increase both the life of your electronics and the safety of you and your family. In the simplest of terms, a “grounded” connection includes a connection between the ground and electrical equipment. In the case of most electrical devices, this is accomplished by using the third, round prong that you will recognize from your electrical outlets and many cords. When wired properly, this ground connection gives your devices and appliances a safe place to discharge any excess or misdirected electrical current. This can potentially save you from dangerous electrical shock, fire and other dangers. Here are few importance of proper grounding.

Read More

Mistakes to Avoid When Building a New Home

Poor planning and budgets that are too small can lead way to some wayward, inconvenient and disastrous mistakes. When you plan on building a new home, you must look at the home from many angles. You must consider your current and future lifestyles. You need to take family planning into consideration – Will your family be expanding? Or will your children be leaving the nest?  Do you entertain often and host overnight guests regularly? Take your time and do your research both online and in person. Be sure to take the time to meet with professionals in the industry. Poor design choices can make your home not only uncomfortable, but downright unhealthy. Architects, engineers and builders are all trained to help you make effective decisions. They will help guide you as to where you can save and where you absolutely should not cut corners.

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The Four Phases of the Real Estate Cycle.

Depicted above is a single cycle. The end of the recession phase connects to the beginning of the recovery phase to form the continuous wave pattern. Understanding the progression of each phase within the cycle is critical in being able to identify investment opportunities, as well as risks that can arise, with heightened sensitivity when phases are on the verge of transitioning.

One of the unique aspects of commercial real estate is that investors can invest successfully across all four phases of the cycle. However, understanding whether a cycle is climbing closer to a market peak, or starting down the slippery slope towards a market low can affect a variety of factors, such as:

  1. Pairing investment strategy to phase
  2. Holding periods and exit strategies
  3. Return expectations
  4. Performance as it relates to income and appreciation
  5. Timing of capital improvements

Read More

Five Thing to Look Out for in a Rent Agreement

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Finding an affordable property to rent/lease can be a real nightmare. Sometimes the stress of checking one property after another, perhaps for months, begins to culminate in a desperation—an eagerness to grab the first one that meets our criteria.

When eventually, we find a suitable one, we are often in such a hurry to move in that we do not take time to read and fully understand the terms and conditions contained therein or even insist long enough to have clauses that will favour us inserted into the agreement for fear of losing to other ‘faster’ bidders.

This negligence of the part of tenants can often end up leaving enough room for minor mistakes that can sometimes become so costly we’d wish we never leased/ rented a piece of real estate in the first place. Read More

How to Buy and Sell a Home at the Same Time

Culled from Realtor.com

Ah, to be a first-time home buyer again: How easy it was to buy a home when you weren’t carrying another mortgage on your back!

If you’re looking to graduate from first-timer to repeat buyer, you know things are about to get much trickier. Unless you’re a bona fide house collector, you’ll have to sell your home in order to buy anew—adding a whole separate layer of anxiety to what you already know is a stressful home-buying process.

In an ideal world, you’d buy a new home, move, and then, and when all the dust settles, deal with the turmoil of selling. But for most people, that’s totally unrealistic. Not only does it cost significantly more, since you’ll be paying two mortgages, but sellers might be quick to judge if you’re holding on to your current home. Read More

Why High Property Prices in Abuja?

It is not beyond our notice that many beautiful houses adorn Abuja, Nigeria’s capital city. The fact that these houses have not impacted the lives of the masses has not also escaped us.

This essentially means that housing, shelter; which is one of human’s most basic needs has eluded the average Nigerian even when they are surrounded by many beautiful and well-constructed estates.

Truth is, not everyone will live in the estates mostly because of their financial status, which is why there are several satellite towns like Gwagwalada, Kubwa etc in Abuja which people can opt for. Read More

The Hutbay Team at Demo Africa 2014

A couple of weeks ago, the hutbay team was one of the 40 start-ups around Africa that was chosen to pitch their ideas to potential investors and our team proudly upheld the integrity of our company. Our CEO, Mr Owolabi Olatunji proudly pitched the idea behind our company to investors from around the world who were very impressed with our performance.

During the event, the Hutbay team used the opportunity to familiarize ourselves with more stakeholders in the industry and also gaining useful ground with the potential investors. The team enlightened the attendees present at the event about the potential strength of The Nigerian Real Estate Marketplace and the possibility of expansion. Read More

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