CategoriesMarketing Real Estate

Why Property Insurance is Important for You

Collapsed building is a common phenomenon in different parts of the country and many people have embraced it as part of the environmental hazards we have to live with. In fact, Lagos ranks as the state with highest number of collapsed buildings in Nigeria. Unfortunately, over 90% of these collapsed buildings were neither insured nor were the properties covered by any form of insurance policy.
Property insurance provides financial reimbursement to the owner of a structure and its contents in case there is damage or theft and also to a person other than the owner if that person is injured on the property. Property insurance may include these policies, such as homeowners insurance, renters insurance, flood insurance, amongst others.
The insurance company offers you a contract known as an insurance policy. The insurance policy is a document that contains all the terms and conditions agreed upon in the insurance contract. While insurance premium is a monthly payment is made by an individual or business to service this contract.
Types of Property Insurance Coverage
Replacement Cost covers the cost of repairing or replacing property at the same or equal value. The coverage is based on replacement cost values rather than the cash value of items.
Actual Cash Value Coverage pays the owner the replacement cost minus depreciation. If the destroyed item is 10 years old, you get the value of a 10-year-old item, not a new one.
Extended Replacement Costs will pay more than the coverage limit if the costs for construction have gone up; however, this often won’t exceed 25% of the limit.
Benefits of Property Insurance
Sense of Security – Having a property insurance protection against the uncertain risks of loss such as fire, natural disaster, theft, gives you a peace of mind and confidence as the owner of the assets. And if these risks occur and you suffer loss, the insurance company will surely give the appropriate compensation.
Compensation for Damage or Loss of Property – Property insurance offers compensation for any damage or loss of your property. The term for compensation is that the loss is not caused by your own negligence.
When choosing an insurance policy, there are different factors to bear in mind, such as the amount of insurance coverage that you are getting from a particular policy on your property. Secondly, the amount of yearly premium that the insurance requires you to pay. Also the time taken and the ease with which you can claim the homeowner insurance and settle the procedure. Lastly and most importantly, you have to go through the list of events that the insurance will cover.


Ways to Make Money Investing in Real Estate

Investing is one of the most profitable business ventures that is bound to garner long term wealth. But it is important to note that investing in real estate is not a get-rich-quick scheme, rather, it is a long term venture. The real estate industry in Nigeria is highly profitable with different ways of earning money –
Real Estate Appreciation – This is one of the ways you can make profit on your real estate investment. This often occurs when there’s a change in the real estate market which leads to an increase in the value of your property. For example, owning a property and selling it five years later. There is a probability that you would be selling for a price higher than you bought it because of the change in the market value. The likelihood of the environment developing over the years will also increase the value of your property.
Cash Flow Income – This type of real estate investment is popular, it involves buying real estate property, such as an apartment or building, and having it up for rent. It ensures there is inflow of income through the rents paid by the tenants for a specific amount of time. Cash flow incomes are also generated from office buildings, apartment buildings, rental houses etc.
Real Estate Related Income – This is type of investments is often undertaken by ‘specialists’ in the real estate industry, such as brokers who make money through commissions from buying and selling of properties. Also, real estate management companies get a percentage of the rent in exchange for managing the daily operations of a property. For instance, a hotel management company earns a particular percentage of the hotel’s sales for taking care of the daily operations including facilities management such as hiring utility staff, laundry, security services amongst others.
Overall, becoming a real estate investor involves having a plan to help you manage your goals and expectations in the real estate industry. Knowing your maths as a real estate investor is crucial, one of the pitfalls in the business is assuming. Real estate is a numbers’ game, and the fastest way to fail is not knowing it. It will also requires a lot of patience, a real estate venture is not something to do on a whim. Most real estate investments are life-long pursuit to help you take control of your financial future.


Knowing your Rights as a Tenant

The rift between tenants and landlords often boils down to the two parties not being aware of their rights. Knowing your rights as a tenant is crucial because it is the first step towards protecting yourself and ensuring you don’t fall victim to frivolous demands from landlords. According to the Tenancy Law in Nigeria, below are some laws you should be aware of as a tenant –
Right to a Written Agreement
Every tenant has the right to an agreement. Agreements, on the other hand, can be oral or written. However, it is advised that agreements between both parties should be written, hence, any altercations would be easily dealt with, and it comes in handy as references. The tenant is expected to go through the agreements thoroughly before signing.
Tenancy agreements are to contain in details the names of a landlord and his tenant; as parties to the Agreement. The duration of the tenancy, the rent payable and the date at which such rent would become payable should be stated. Before signing any agreement, a prospective tenant is advised to seek the service of a solicitor to break down any unclear terms in the Tenancy Agreement.
Right to Issuance of Receipt of Payment
The receipt of payment is an acknowledgment from a Landlord or an Agent that a rent payment has been made by a tenant. It must have the name of the landlord and the tenant, including the amount paid and the date of such payment. The receipt should clearly state the duration that such payment will cover and the signature of the receiver must also be on the receipt. It is an actionable offense to refuse to issue a receipt for rent paid and received. It is your right as a tenant to be issued a receipt upon payment of rent.
Right to a Valid Quit Notice
A tenant cannot be thrown out of his apartment unless there is a strict compliance by the landlord with relevant Recovery of Premises Law. Recovery of Premises Law states that a valid “quit notice” of a landlord’s intention to terminate/quit the tenancy of the tenant must be written and served to the tenant. The amount of time given to the tenant, whether weekly, monthly, yearly, depends on his rent. A valid “Quit Notice” must have the name of the landlord, the name of the tenant, the address of the property occupied by the tenant, the duration given to the tenant included.


Red Flags in Real Estate Transactions

Real estate has its own fair share of red flags, they are warning signs that guide you from losing huge sum of money to real estate fraudulent transactions. Aside from knowing what to watch out for, it is equally important that you do your due diligence to avoid falling victim to real estate scams.
Avoiding Legal checks – Real estate transactions are legally binding, therefore the service of a lawyer are required. When a real estate agent insists on not including legal documents in the transactions, that is a red flag. Most times such real estate agents are smooth talkers and often persuasive, you have to be careful not to become a victim of their fraudulent propositions.
Impatience – This is the #1 red flag, when a real estate agent seems impatient to close a transaction. It is important to take your time to re-evaluate the transaction; to be sure that it is not a fraudulent deal. If it is not a dubious real estate transaction, then you don’t have to rush to make payment.
Evidence of Payment – It is important to have evidence of payment for every transaction you engage in, especially real estate transactions. The evidence of payment can be receipt or other documents that clearly identifies you as the bonafide and legal owner of the property. The receipt must indicate the following information – Confirmation of payment, Date of payment, Amount Paid and Name of the receiver. When the real estate agent closes a deal without giving you an evidence of payment that is a red flag.
Incoherent Figures – Another red flag is when the figures don’t add up, particularly when it sounds too good to be true. This is not the time to be excited over the ridiculously cheap price of a property, rather you need to take a step back and reevaluate the figures. Also beware of exaggerated claims; instead do a market survey to know the price range of the properties you want to buy.
Inspection – Amongst all the processes involved in securing a property, inspection is one of the most crucial step. Most fraudulent real agents always avoid this part of the transaction, by delaying, postponing and even denying you of the opportunity to see the property you want purchase or rent. Before closing any real estate transactions, ensure that the agents can be verified and do thorough investigation about the companies they are working for.
Mode of Payment: It is important to avoid cash payment such that the history of the transaction can be traced. Spreading of payments can also help detecting fraud and reducing risk.
Scope of Repair: Always agree and document repair scope and responsibilities. This is important because often times you might think you have a good deal by paying low but the cost of repairs can make the effective rent or purchase price grossly higher than the open market rent or value.
Timing of Inspection: it is best to inspect during rainy season otherwise you might unknowingly pay for property prone to flood and dampness

CategoriesConstruction Marketing Real Estate

How to Determine the Market Value of your Property

The real estate market in Nigeria is dynamic, as a result the value of properties are constantly changing. Knowing what your property is worth especially when you are trying to buy or sell. The market value of your property is what buyers are willing to pay for it. There is nothing worse than selling way below value and losing money. Below are some factors to consider in determining the value of your property –
Location – Location is key in the demand for homes and it can considerably affect the value of properties in these areas and how much they are purchased.
Physical Characteristics: The size, shape and topography of the property are factors equally important in estimating market value of properties. This have great effect on the use to which it can be put and also impact the eventual cost of development. The more appealing these factors, the higher the value of properties.
Availability of Infrastructure – Properties in locations with essential amenities such as reliable power supply, drainage systems, good roads and more are bound to attract the attention of buyers which will invariably increase the price of the houses compared to underdeveloped areas.
Market Knowledge – Surveying the market will further help to determine the worth of your property. Current listings of similar properties can give you an idea of the real estate price estimate in your area. Also check out recently sold houses in your area, especially if the properties were purchased at impressive prices over the past six months.
Nature of Title – The type of title to properties can determine their worth. Properties with registered titles are likeky to command higher values that those with unregistered titles or just survey plans. The reasons for this are that parties would have to factor in cost of perfecting the title aside from the fact that athose with registered titles are better secured and bankable.
Nature of Interest: Interest in properties can be leasehold, freehold, licence, easement and many more. All these interests have varying degrees of relevance. The nature of interest therefore determines the tenure and certainly the value.
Condition of Property: The stste of repairs of properties have significant impact on value. The lower the cost of repairs, the higher the value and vice versa.
Use of Property: The use of property can be Residential, Commercial, Industrial or Recreational. All these uses have a way of impacting on the value.


How to Convert Real Estate Leads to Sales

There is nothing as rewarding as when your leads convert into sales and in real estate, your fortunes are bound to double. Following up is one of the key strategies for turning real estate leads into clients, it is a marathon, not a sprint. It is important to note that the ideal real estate leads are qualified, interested, and engaged.
Timing is key – The primary rule in the real estate bible says “initial response time is key”. This is a basic tip in following up your lead, you are expected to call your real estate lead within approximately 15 -20minutes. This isn’t a quick-sales scheme but it is still is essential for converting leads to sales. Many people end up doing business with the first real estate agent they speak to, so timing is everything.
Create a Trackable Database – This is the most important part of the process when creating your database, put your real estate leads into different categories. You can create headings for each type of lead such as people that plan to buy within 3 months or clients that want to sell their properties in 6 months, this will help you understand what the chunk of your clients want and the category they fall into. Creating the database helps you track your leads easily and focus on potential clients.
Be Friendly with Leads – Concentrate efforts on turning your leads to friends, personalize your communication, add a friendly tone to it. Relax your messages and emails to them, this will help you to earn their trust over time. Understand what they want, help them to decide on the next step to take including the best deals on the property of their choice. This phase is often called the ‘Fulfillment’, from following up on the leads to anticipating their questions and providing answers, resources, and resolutions. Also showing the client you have individual property information about the area where the property is located including school, housing prices, and resident demographic information gives you an advantage over other real estate agents.
Be Mobile – For fast responsiveness to potential clients, you need to be mobile. It’s important for real estate agents to do their jobs which includes managing phone calls, customer contacts, and accessing listing information without being bound to a desk. Providing relevant local information helps to quickly establish lasting client relationships.

CategoriesConstruction Marketing Real Estate Uncategorized

Tips for Choosing a Good Rental Property

Changing your apartment can be an exciting adventure but it can also strenuous and time-consuming especially when you are not aware of the factors for determining a good rental property. There are a number of factors to be considered when choosing a rental property, below are some tips to help you make the right choice –
Budget – What is your estimated budget for the property, flat, or office space you want to rent, answering this question will give you a clear vision of what to focus your search on. When searching for a space to rent either for residential or commercial purposes, it is important to calculate the added cost of utilities to ensure that the property of your choice suits your budget. Understanding how much rent and added expenses you can afford will help you to stay within your budget and avoid unwarranted scenarios of a payment default.
Location – Location is another crucial factor to be considered when choosing a rental property, because of the potential value of properties is largely affected by location. In Lagos, the Island v Mainland perception automatically affects the price of a property because of where it is located. The location of a property is very crucial in terms of security, nobody is interested in renting a house or office space in an area where they would be facing threats of armed robbers or miscreants.
Structure – There are different types of building structures on display for rent or purchase but knowing the right type of structure you want will help save a lot of stress and money. If you want to rent a bachelor’s pad, then you should focus on buildings that are designed to match what you want. Also, consider other structures in the environment where you want to rent, if there is a church or mosque around, then you have to be prepared for possible noise pollution.
Social Amenities – Social amenities is a key factor to consider when renting a property, aside from the location and structure of the building, you need to find out if there are accessible road networks to where you want to reside. There should be good roads connecting the rental property to other parts of the city. The rule of thumb is to be ‘be patient and thorough’. The safest bet is to contact a real estate agent to facilitate the process for you, Wemabod Limited offers you a wide array of properties for rent and sale that are affordable and environmentally friendly.

CategoriesReal Estate

COVID-19 and Its Impact on Real Estate in Nigeria

The impact of the COVID19 pandemic can be felt in different sectors of the economy, including the real estate industry. The Fitch Ratings revealed that the pandemic will push the Nigerian economy into recession with GDP contracting by 1%. Coupled with the diminishing oil revenue, non-oil GDP will also fall due to economic disruptions in major cities currently under lockdown.
With major cities on compulsory lockdown, hotels, restaurants, malls, office buildings, luxury spaces are currently vacant. There are a number of considerations regarding Post-COVID: Will employers be convinced to continue the work-from-home system? Will the demand for office space decrease when the coronavirus outbreak is over?
Most people are faced with two major concerns over the COVID-19 pandemic- contracting the virus and the decline in income level. The lockdown has no doubt led to the loss of jobs for many individuals while others are dealing severe salary cuts. People that depend on daily income to meet their obligations are stranded.
Concerning rental housing, experts predict that property owners could face cash crunch as there will be high default on rent. Housing advocates say the ripple effects of the coronavirus outbreak could upend housing in major cities like Abuja, Lagos, Port Harcourt and Kano reducing apartment rents by 50 per cent.
For the Nigerian real estate market, relief support from the government will play a huge role in ensuring steady rents and lowering evictions in the housing industry. While some landlords may lose a significant portion of income to retain some tenants, others may have to engage in rent discounting and rent concessions.
Despite the downturn in the real estate sector due to the COVID-19 crisis, PropTech presents a silver lining that can be maximized by stakeholders to stay active in business. Property Technology or “PropTech” involves the use of technology to create and deliver innovative real estate products and services. Though the technological innovation can still be said to be novel, it is steadily experiencing widespread reception, with more people adopting tech solutions in property transactions.
Based on the products and services offered, it can be structured into different categories which include Property Listings, Investment and Financing the construction of properties, Property and Community Management with integrated tools to help communities and homes manage their properties and Flexible Living options such as Airbnb.
Presently, there are no regulations specifically covering PropTech sector in Nigeria. However, the laws and regulations relating to real estate in Nigeria are still relevant to it.

CategoriesReal Estate Uncategorized

Wemabod Limited:The Flagship Customer-Centric Real Estate Solutions Provider

Executive Summary
The Company, Wemabod Limited was formerly known as Nabani Estates Limited. Incorporated in September 1962 as a wholly owned subsidiary of the defunct National Bank of Nigeria Limited.
Nabani Estates Limited was later sold to Western Nigeria Marketing Board where the name Wemabod was derived. By the incorporation of Odu’a Investment Company Limited, in 1976, Wemabod effectively became a subsidiary of ODUA Group of Companies.
WEMABOD Limited  remain one of the institutional investing companies  pooling large sums of financial resources  and investing same in securities, real estate assets and other investments vehicles.
Over the years, Wemabod Limited has created products that are often pocket-friendly as well as being  equally environmentally friendly.
The company is driven to be a first-class customer-focused real estate solution provider geared towards consistent growth and maximizing returns to our investors/shareholders.
WEMABOD LTD. is one of the largest property companies in Nigeria with a wide range of commercial, industrial and residential properties in its portfolio.
Real estate assets in Wemabod Ltd portfolio are located in strategic areas like Ikoyi, Lagos Island, Surulere, Abuja, Portharcourt, Ikoyi, Apapa, Ibadan, Akure etc.
The Market
Real Estate in Nigeria is undeniably a lucrative sector and it is one of the most reliable investment vehicle in the country. The sector  is also noted for its contribution to the nation’s GDP on a consistent basis.
Real Estate practices involve the purchase, ownership, management, rental and/or sale of real estate asset to generate income and capital appreciation.
Nigeria’s rising booming economic activities and population growth is a sure panacea for increase demand for housing and workspaces.
The real estate sector  is the fifth largest contributor to the Nigerian economy.
The burgeoning interest in the Nigerian market is due to the huge demand buoyed by the increasing urban population. Most organizations in Nigeria (both public and private), mix real estate with other forms of investment in their asset portfolio as a means of diversifying their investment portfolio.
That is why Wemabod Limited is strategically positioned to offer real estate investment solutions, thereby helping individuals to achieve their dreams of property ownership , enhancing value for such assets and optimizing capital appreciation.
Comparable to every other business endeavour, the journey of Wemabod Limited in achieving its property development and management objectives has had its own fair share of challenges.
However, the company has always thrived on a philosophy of rising above the storm and continually reinventing itself even as the company recently reposition after a rigorous strategy review exercise conducted by management in conjunction with KPMG professional services. This is more so and critical as the company strives to attain a high degree of professionalism, efficiencies and consistency in its operations whilst continuing to ensure  superior returns to all categories of investors/ shareholders.
For your real Estate advisory services and investment needs please call our Asset Management Team headed by Mr. Bashir Oladunni on cell phone No +234 -8035623968 and Mr. Tope Olaiya on cell phone No +234- 8023710466