In a bid to placate residents of the waterfronts area of Port Harcourt, ahead planned redevelopment , government has introduced market value compensation strategy.
Going by the development property owners in the slum areas are expected to pocket huge sums to enable them afford fresh accommodation immediately the redevelopment commences.
Explaining why government took that action, Rivers State Governor, Rt Hon Chibuike Amaechi said the essence is to cushion the effects of the exercise and provide soft landing for residents of the area.
With reasonable amount of money in their hands, the Governor, while speaking at the accountability forum to mark the second year of his administration said any property owner who receives compensation can be able to provide alternative accommodation for him or herself.
Precisely in June this year, experts under the auspices of the Nigerian Institution of Estate Surveyors and Valuers had taken appraisal of the matter during their annual mandatory continuing professional development seminar.
In his paper title, “ Effects of Urban Renewal on Property Value”, Mr Gabriel Ofoma commended government for the re-think and already approved polices that have properly set up efficient urbanization and urban renewal programme.
Mr Ofoma remarked that, “today we love Abuja and Calabar after we had condemned El Rufai and Donald Duke when they were rectifying faulty development. Today similar exercise is on in Port Harcourt, Enugu, Lagos and few other cities in Nigeria aimed at restoring past glory of these cities”.
The effect of the exercise he buttressed would spill-over unto the mainland because of the teeming population that has adverse influence on housing demand.
Since the exercise commenced early this year, rents in the city centre have risen. Houses in less-demanded areas of Diobu and other fringe communities are scarce to obtain.
Ofoma observed, “property values had always been positively affected in areas that have been planned and effectively serviced with all infrastructural facilities”.
For the redevelopment to be effective, the estate surveyor noted that it must commence from an efficient allocation and judicious utlilization of land resources, ‘ it is land resources that propel growth and development in all activities, be it agricultural, industrial, commercial, trading, housing, transportation”, he added.
Ofoma expressed happiness that efforts are now being made to review mistakes initially made in the land allocation and utilization and to replan, extend and infact construct new areas to meet the needs of the present without compromising opportunity of the future generation to also benefit.
Controversies however have continued to trail the scheme to redevelop the waterfronts in Port Harcourt, most of the fears express cannot be disconnected from the Maroko-experience in Lagos.
Many residents are apprehensive that the exercise may mark the beginning of their losing their properties. But in a quick measure to douse such feelings, government recruited enumerators to conduct verification exercise of houses types and ownership in the area.
If the enumeration exercise is finally conducted, it would provide the government with the real picture on how to make compensation and in the long run a blue print for the former slums.
A lecturer in the department of estate management of Abia State University, Uturu, Dr I.U.Kalu speaking on compensation implication of Nigerian Urban renewal schemes argued that the major drive for government acquisition bid was purely for economic reasons.
Dr Kalu was of the view, “when poor income predominate a neighbourhood, the rent crash, criminals find such areas conducive and maintenance of structures will be given little attention.
He was however, quick to add that the balancing of both economic and social implications of urban renewal has led to the abandonment of the schemes.
Even with the resistance to the exercise, Governor Amaechi said he would not be blackmailed maintaining that the exercise is for the good of all the people.
Immediately, the area are redeveloped Amaechi said that huge expense of land would be sold to any person from the state. He had earlier stated that waterfronts are for high brow accommodation.
Consequently, Dr Kalu was of the opinion that the success of the programme would rely more on the cooperation of the people, stressing that the coast of acquiring obsolescent properties and rehousing the occupiers, rebuilding to new improved standard of design, layout and amenties, is far more expensive than the value that can be derived from a residential scheme.
Commenting on why the government might have adopted the market value strategy to compensate owners, former publicity secretary of NIESV in Rivers State, Mr Emmanuel Mark told The Weekend Tide that apart from cushioning the effects of relocation, it would propel estate market.
Mr Mark contended that valuers considered the depreciation and appreciation values of the properties saying that is the only way to sustain that both valuers and property owners benefit from the scheme.
Considering the future plan for the area, he observed that government would stand to benefit and double gain if finally the areas are redeveloped.
Most of the factors that go into valuations, Dr Kalu explained include land, buildings and crops.
On the other hand, another contentious issue is in the area of ownership. Experts are of the view that most landlords are of temporary hold titleship, since the lands were not adequately acquired.
They argue that the land US Act provides legal backing for government action in redeveloping the area, this view however was contended by notable lawyers and former president of Nigeria Bar Association (NBA) Barrister Onueze C.J Okocha.
Okocha who spoe on compensation and the provisions of law”, supported the action of Governor Amaechi to pay adequate compensation to property owners at the waterfront.
His words, where a right of occupancy in respect of any developed land on which a residential building has been erected is revoked under this act, the governor or the local government , as the case may be, may in his or its discretion offer in lieu of compensation payable in accordance with the provisions of this act.
Resettlement in any other place or area by way of a reasonable alternative accommodation”.
From the governor’s perspective, relocation seems to have been clearly ruled out with the huge compensation paid to property owners.
Okocha on the other hand declared quoting section 29 of the Land Use Act that, where the value of any alternative accommodation as determined by the appropriate officer of the Land Use and Accommodation Committee is higher than the compensation payable under this Act, the parties concerned may by agreement require that the excess in value in relation to the property concerned shall be treated as a loan which the person affected shall refund or repay to the government in the prescribed manner”.
The Senior Advocate of Nigeria while explaining what Fair Market Value” was stressed that buildings, installation or improvement including the replacement cost of the building should be incorporated in the computation of compensation.
Things to consider when buying a new home
Owning your own home brings a sense of freedom & arrogance that cannot be matched by renting a property but buying a new home is one of the major expenses in someone’s life. There is a big list of things to consider when buying a new home and most of them are vital than color of the paint. As it is one of the big financial decisions in your life, being informed with all basic things is most important aspect to buy a home with the complete peace of mind.
Since buying a home is a big decision for you to take, it would be great decision if all the practical steps are taken carefully in order to avoid feel sorry for your decision in days to come.
Things you need to know about buying a home
Below is the list of things you should take into consideration when buying a new home for peaceful living with a whole freedom.
Determine how much home you can afford
Determining that how much you can offer should be the first step towards buying a new home. If you are about to buy home without getting loan, the process will be easier for you but if you will pay for it via mortgage then your total debt-to-income ratio should not exceed 36%. And mortgage money owing alone should be less than 28% of the monthly income if you really want to prevent financial troubles in near future.
Assess your credit score
Credit score is one of the important things when it comes to apply for a loan. That’s why; you should assess your credit score ahead of time before applying for the mortgage. Having improved credit score can help you get lower interest rates that can save thousands of dollars until the loan fully paid. Applying for a loan with better credit score can help you get better and simply loan terms.
Loan approval numbers and down payment options
Pre approval for loans give you a clear idea of what type of mortgage you can deal in best way when buying a new home. Loan approval numbers is something that can also help you state how much you need to think for a down payment. That is the reason, it is considered as one of the vital things to consider when buying a new home that keeps you stay within your means.
Since home warranty is something that keeps you away from expensive home repairs and costs in future, you should consider the best home warranty company to make sure all things would be in your favor. Basically, home warranty is a contract between the homeowner and the warranty company that provides discounted repair and replacement service on the home’s major components; you can find a best one for your home here https://aaacreditguide.com/best-home-warranty-companies/. These companies offer best plans that provide homeowners who purchase a policy with certain coverage or plans can also be modified according to the individual needs.
Size of the home you need
Buying a bigger home space than your currently requirements or needs is always recommended by experts as you will require more space with growing family. More space in new home means you can maintain it in best possible way without facing troubles in future. But, you should also take your budget or mortgage into consideration when looking for a best suitable home space for a peaceful living.
Location is incredibly important
When it comes to buy a new home, location is one of the vital things to consider. You should choose the location near to all facilities and essentials such as school for kids, a home near to workplace or office, easy reach to grocery store and so on. By doing so, you are not only going to save your money but time as well because you are going to commuting from your home place to different locations like office, kid’s school and market etc.
Go with a trusted realtor
Due to the higher commission rates, most of peoples are cautious to avail services of realtors. You should also keep in mind that the seller, not the buyer pays the commission during the home sale transaction. Before availing the services of realtor or real estate agent, you should compare the best services in the town. Nowadays, you can also find the best real estate services online to save time and money as well.
The Most Effective Real Estate Tips
Sellers have the significant deal of information at their convenience, though a reasonable amount of it is invalid or deceiving. This article concentrates only on guidelines that have been proven to work through years of the program.
The cost makes all the difference. Unless you set an attractive, sensible cost, it will be very difficult to entice interest from buyers.
When selling a house, clear as many items out of it as you can, even if you still live in the home. The people who visit need to see themselves in your home, but your hits could give them a perspective they just can’t fit into.
Small kitchen improvements can be wise investment strategies that increase the attraction and value of your residence. Rather than taking a capturing approach to upgrading the entire kitchen area, which can be expensive, select one noticeable equipment to update and use as an “eye-catcher.” A nice isle update with a clinging equipment holder is also an excellent way to capture a consumer’s eye. Instead of changing out old units, consider giving them a clean cover of color.
Check the place of your air conditioner systems before selling your home. If necessary, have them maintained or fixed, so they are running nicely when you record your home. Typically, customers don’t like purchasing a home that requires having to spend a lot of cash on having to purchase a new heating unit. Therefore, if your AC and heating unit are in excellent condition, this attracts possible customers more.
Often the real estate industry goes through the periods. Fall designs can help your home appears more pleasant to potential customers. Always make sure that the simply foliage is raked from the lawn; this provides a cleaner overall look and increases charm.
Putting in a bidding war could be just what you are looking for. You will want to get a genuine idea of present price tags for similar houses in your area.
If you are desperate to offer your residence, find out what the smallest asking cost is on similar houses in your community, and record your home at a cost that is 10 percent lower than that. Buyers will be drawn at such a low cost and will head to your home for a watching.
Before you show your home to buyers, you should open the curtains as widely as possible. Prospective buyers enjoy seeing how shiny the home can be just from the sunshine. You should pull all the curtains and curtains returning, and raise all the shutters, as well. You should even raise those windows up to let some clean air into the home along with the natural sunshine.
When trying to offer your home, make sure your ceiling is in excellent. A ceiling that is in need of significant maintenance could be a significant deal-breaker for customers. Consider offering buyers a discount on your asking cost if you do not plan to fix your home’s ceiling before selling it.
Now that you have analyzed these guidelines, your goal should be to integrate them into a tangible sales plan. Carefully develop your strategies and rest-assured that you are better prepared to cope with this varying industry. Look returning to these guidelines and stay present with the industry.
About the Author: Carol James is a writer and senior editor custom papers and essays writing service EssayLab. She has MA degree in social sciences and writes articles, reviews on the different actual subjects. So, if you have any questions regarding the writing, feel free to ask her.
Experts List Impediments To Estate Surveying Practice
Experts in thebuilding industry have listed some factors bedeviling estate surveying and valuation profession in the country.
They include, poor remuneration, quackery, stringent legislation, lack of training and falling standards of valuation practice.
Speakers at a three day educations seminar organised by the African Reel Estate Society (AFRES), West Africa Group in Ogun State recently said this in the papers presented at the workshop.
Setting the ball rolling, the Dean School of Environmental Science, Convenient University, Ota, Professor Olajide Solanke stated that poor quality service, outdated scale of fees and unhealthy competitions are some of the major challenges of the professionals in the industry.
Professor Solanke was of the view that poor quality service will incur the disrespect of the society on the professionals and also lead to non-payment of professional fees including threat on the continued existence of the profession.
According to him, the 1996 scale of fees for the professionals can in no way stand the test of the time due to frequent currency fluctuations and devaluation.
He stated that one of the greatest challenges of the building industry today is the need to revise the 1996 scale of fees stressing that in spite of the fact that Nigeria currency has experienced devaluations and fluctuation, the client do not want to pay the 1996 specified fees.
In the same vein, he attributed unhealthy competition among professionals in the sector despite clear specification of professional roles to lack of vision by the practioners.
He however, used the occasions to canvass for the regeneration and restoration of professional ethics as to enhance the practice of estate surveying noting that the future of the sectors is the future of the professionals.
Also presenting a paper entitled “Challenges Facing Surveying and Valuation profession on the Global Setting,” Dr Olawande Oni of the Department of Estate Management, Convenant University observed that the challenges confronting valuation profession across the globe are interconnected.
He insists that competition for work, compliance with complex and stringent standards of professionals practice within harsh environment, keeping abreast of the dynamic and changing environment of valuation practice, poor remuneration and coping with stringent legislation are some of the problems facing the practitioners all over the world.
On the negative impact of stringent legislation in the country, Dr Oni pointed out that such laws include the Land Use Charge Law 2001 in Lagos State and perceived threat from Economic and Financial Crimes Commission (EFCC) and money laundering Act.
He explained that the greatest challenge to the profession is the EFCC Act, Sections 17, 18 and 24 which put the onus on an estate surveyor to prove that he/she is not aware of concealment, removal of jurisdiction, transfer to nominees or otherwise retains the control of a proceed of a criminal conduct or illegal act on behalf of his principal.
It also provides that a person knowing that any property in whole or part directly or indirectly represents another person’s proceeds of a criminal conduct and uses that property or has possession of it, commits an offence and is liable on conviction to imprisonment for a term not less than five years or fine equivalent to five times the value of the proceed of the criminal conduct.
Dr Oni noted that this implies that estate surveyors must be vigilant and investigate all instructions that they secure as illegal money being diverted into real estate investment.
On the training of practitioners he canvassed the replacement of the syllabi adopted by some of the institutions of high learning offering estate management with modern ones saying that they are outdated and quality of graduates is questionable.
To overcome the challenges, Dr Oni called for formation of partnership of medium and large estate surveying establishments to enjoy internal economic of scale, enforcement of valuation standard, and keeping abreast of modern trends in real estate.
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