Sherry View Gate

Have you been to Lekki lately? I am always stunned into silence at some of the mind-blowing features of the beautiful and tranquil area of Lagos each time I visit. The palatial buildings beckon, well ornamented to sway the simple-minded like me, the lawns are well-mown and car cruise in with accustomed ease as different ‘pearl gates’ swing open to welcome their fortunate owners, the security enjoyed there, sustained by shining gates that touch the sky and a network of almost fool proof security operatives remind one that human life should really be held sacred and dignified; and above all a lovely view of the ocean, with its frequently changing form, is a rare opportunity to commune with in its originality. Lekki presents a world of freedom, but how true is it (the freedom)?

In sharp contrast, the first day I heard of Mowe/Ofada, the first thing that readily came to mind was the popular delicacy (local rice) and then wondered where on earth Mowe/Ofada is. A hasty answer may betray that mark out this settlement as an emerging Mega City. Nestled by the cool beauty of natural heritage off Lagos-Ibadan expressway, Mowe/Ofada plays host to several religious bodies (Redeemed, Deeper Life, NASFAT, Assemblies), manufacturing concerns (which are increasing in number by the day) International Schools, to mention but a few.

Blessed with estate developers who have acquired much of its land for onward easy accessibility and affordability by the public, Ofada is already the choice of several banks, multinationals and Universities co-operatives that want staff quarters and estate for their invaluable staff members. At Ofada, buildings spring up every day as the earth wakes beneath the sun in winter and estates gradually take their forms and shapes. This development has encourage the influx of worship centers and essential service providers to the emerging having marked by peace, serenity

The mass publicity given to home ownership plans has been very attractive and not only few people rush at this opportunity because of the enticing payment structure. This has really cushioned the adverse effect of direct land purchase from land agents and other self-imposing stakeholders- “touts”.

Subscribers to sherry View Garden-land and housing units enjoy the payment spread which allows for convenient and proper planning. This is to ensure those who cannot make one off payment can still afford to plan within the time frame no matter what their income is.

Presently, the SVG houses are being rushed at, especially the 3 bedroom flats, because if their unique design and beauty. It goes for N6.5 million with the following payment options:
1. 40% down payment (N2.6m) and spread balance for 2 years.
2. Outright payment to attract 5% discount only.
3. Various levels of the building are also available for sales (Foundation only, Lintel level, Roofing Level or Finished Building).
It is quit important to note that paying for land does not make one a house owner yet, as the cost of construction must be duly considered and it appears home ownership still remains elusive despite the available payment plans. No thanks to mortgage institutions and their bottlenecks yet City Planners property and Investment Ltd is open for discussions on mutual benefits with our clients for easier house ownership.

In real Estate Property Documentation, there are two major legal instruments these are Registration and Non-Registration instruments. Some of these instruments are hereby examined as follows:

I. Memorandum of Understanding: this a a legal document stating an agreement between two or more people. It is used when there is a need to put an understanding between two or more people into writing for legal documentation. This understanding can be anything once it is related to the property in question.
II. Deed of Contract: this is an instrument signed, sealed and delivered by two or more parties to convey some interest in property. Simply put, a written instrument by which land is conveyed: or otherwise recognizable by law.
III. Deed of Covenant: it is a promise written into deed or other instrument agreeing to performance or non-performance of certain uses of the property. It is often used to maintain a land parceled in a specified use such as residential, commercial etc, enforce architectural and design standards, control the destiny of future development and prohibit certain practice.
IV. Deed of Assignment: it is registerable document signed seal and delivered. It is a means of transferring ownership of property from one person to another; it cannot be registered without survey because it serves as an instrument for Deed of Assignment. For deed of assignment useful, it needs a government consent which makes it valuable to serve several other purposes such as mortgage, loan request etc. Terms aligning with the deed are:-
a. Assign – to transfer one’s property right or contract right to another.
b. Assignee – this person to who, an agreement or contract is sold or transferred.
c. Assignments – This method by which a right or contract id transferred from one person to another.
d. Assignor – A party who assigns or transfer an agreement or contract to another.
Power of Attorney – An instrument granting someone authority to act as agent or attorney-in-charge for the grantor. It represents the wishes and mandate of the principal. The authority so granted specifies the legal ability to produce a change in legal relation by doing whatever acts are authorized.
Approval Layout – This is a rightful document that annexed the various mark-out specification of a large parcel of land.
Certificate of Occupancy – It is a title document stating the rightful ownership of a particular parcel of land.

Conclusively, there is no end to what a legal-documentation is because any document that can be tendered in court and admissible is an evidence in the court of law.

International investment in real estate are occurring across all regions and major economics at unprecedented level. Global direct real estate investment reached USD 682 billion in 2006, a year-on-year increase of 38 percent. More than one-third of that amount was cross-border investment. Institutional investors in western economies are looking to emerging markets, seeking higher returns while demon stating a higher level of risk tolerance.

Historical investment from the Middle East (notable Saudi Arabia, Qatar, Iraq) has tended to look to North America and particularly Europe but it is only now starting to devote the same level of attention to Asia Pacific. Many Middle Eastern States are inviting foreign investment in their real estate sectors, while tacitly promising reciprocal investment driven by their revenues from oil and gas production.

In Asia Pacific, Singapore & Australia are two countries purchasing above their weight, given their relatively small populations. The two counties have accounted for most of the investment heading out of Asia pacific to other regions. Singapore has emerge rapidly as a centre of cross border Real Estate Investment Trust.

Europe still has a high proportion of intraregional cross border activity, but has also been the biggest recipient of global sources of funds over the past year, according to Jones Lang Lassalle.

Russia is one of the hottest markets over the past year. Foreign investment in Russian real estate reached USD 4.3 billion 2006 compared with just USD 1.5 billion in 2006 in 2006 and USD 0.4 billion in 2004. Analysis believe that the country is challenging but very profitable place to invest. Large scale projects have been undertaken in retail, office and logistics, as well as in the construction and regeneration of residential satellite towns.

Indian is another country that has seen dramatic growth in demand or residential, commercial and retail property, with property prices in some cities increasing by more than 200 percent over the past two to three years.

There was an estimate that more than USD 50 billion of capital has been lined up to invest in property, but naturally it will take time for this capital to found suitable assets.

India has had visible successes in improving road and airports and this is welcome news for investment in warehousing and logistic-related property, but urban town planning remains a challenge.

The extent of real estate investment is creating enormous demands on the construction industry. Township-style developments are being built on an unprecedented scale for example in Russia and India, while Dubai and South Africa have secure investment for vast integrated leisure and retail complexes.

China remains a vast potential market for real estate investment. Despite the government efforts to cool the real estate market, this has not discouraged investment from institutional investors. Analysts admit that industrial real estate remains virtually untapped and that huge opportunities could exist through restructuring or improvements to asset managements.
The demand for infrastructure in both developed and developing markets is likely to persist over the coming decade, driven by population growth, urbanization and backlog of underinvestment which threaten to restrict GDP growth.

Many counties are finding that government capital investment budgets are falling well short of the massive investment required. The private sector is playing an increasingly important role in bridging this gap.

In line with the recent explosion in the use of Public Private Partnerships (PPPs) and Private Finance Initiative (PFIs) around the world, particularly in US, Europe, the Middle East and Australia, there is growing awareness across Asia Pacific of the potential benefits of greater private sector involvement in the design, construction, operation and finance of infrastructure.

Increasing housing deficit in Nigeria is posing problem to many Nigerians. At present, there is a shortfall of about million units in the housing sector. And this is very unfortunate. The problem is that our leaders over the years have lacked the political will to confront and address this alarming problem.

With the current level of decadence of the housing sectors and lack of political will on the part of the government it has become a matter of national urgency to come up with a more proactive measures to handle the housing problem.

It is on record today that Nigeria is the 6th largest producer of crude oil in the elite league, known as OPEC, whose members account for over two-third of the world’s total supply of this prized commodity. Also, the country’s estimated reserves of natural gas runs into billions of metric tones these attest to our viability as a land flowing with milk and oil. In terms of revenue earning capacity, it is worth mentioning that Nigeria to date has realized over US500 Billion from crude oil sales.

For a country that can boast of such huge amount of resources, it is very saddening and disturbing to note very little of the earnings have been put into use to boost the service delivery of Housing Industry. The industry should have experienced lots of improved activities and government support for large housing scheme delivery, provisions of infrastructure, creating and expansions of new towns.

A cursory look at the present state of housing provision tells a glaring tale of a huge paradox of achieving so little with so much endowment – an indictment of the government that ought to provide the lead. And, so, today, the housing provision is in a state of comatose, neither dying nor living.

The reason for such dismal conditions in the housing market is not farfetched. For the most part, everyone realistic workable solutions. With a population estimated at 140 million Nigerians as reported by the National Population Commission 2006 head count, it is practically impossible to provide affordable housing for middle and low income Nigerians who constitute the bulk of the population, without a viable long-term mortgage lending scheme.

In developed countries, mortgage financing is a key to housing scheme delivery. This explains the reason most developing countries are struggling to deliver houses for their citizenry because government at all levels has failed to come up with a workable blueprint that will established lasting structures to sustain the required housing units per period of time, holistic approach should be taken. The experience of US is an example to emulate in this regard. The Federal National Mortgage Association was established by President Franklin Roosevelt in 1938, after the great depression principally to address the unwillingness or inability of depositary and private mortgage institutions to extend loans to low income family.

According to its former Chairman Franklin Raines, over the past 60 years, the institution has remained focused on this singular objective. And successful growth hone-ownership to 67%. In the last 5 years the growth rate of home-ownership amongst blacks and minority population (who constitute population) has grown by over 200% to 49% of all householders. Federal Home Loan Mortgage Corporation (Freddie Mac) is another major player in the secondary mortgage market. The ability of these two institutions to create liquidity, diversify risk and build confidence among primary lenders can’t be over-emphasized and is the key to success.

It is fascinating to note that mortgage financing of developed countries is a structure for long term period, rather than mortgage-lending scheme as we know it today in Nigeria, that is predicated on short-term loans in the face of rising inflation and high interest rate. The National Housing Fund (NHF) was created as a vehicle to mobilize saving and disburse loans to qualified low and middle income home-buyers.

Unfortunately, most of these loan facilities remain on the balance sheet of either the primary lending institution or Federal Mortgage Bank of Nigeria (FMBN) until maturity (fully repaid). Such a practice is not only inimical to the ability to expand credit and create liquidity but also imperils the lender.

Having studied closely mortgage system and structures of various developed countries, I have come to the conclusion that to fully develop mortgage sector that will stimulate economic growth, the Nigerian government must, as a matter of national priority among other things, create a framework for mobilization of private sector funding into the housing sector by proving necessary incentives pension funds and insurance companies should also be encourage to partner with the primary mortgage sector to develop market-based financial products with a view to jump-starting secondary mortgage operations, a reduction in transaction charges associated with the housing sector, which presently imposes a significant cost burden that is ultimately borne by home buyers and also hasten the process of the passage of the Land Act Amendment Bill by applying pressure on the National Assembly to expedite consideration of the bill. Immediate removal of ‘Governor’s Consent’ as a major requirement for land title from the Land Use Act should be a right move in the right direction.