Our Special Guest on week 3 of The Property Show on Inspiration 92.3FM was Mrs Udo Okonjo, Chief Executive at Fine & Country, West Africa and the theme of the show was Luxury Property in Nigeria.
Mrs Okonjo advised investors in luxury property to perform adequate due diligence to confirm information that has been presented pertaining to the property which they seek to buy or invest in. Given that luxury property involves one parting with a lot of money, several factors beyond property location must be properly assessed.
Luxury property investors need to consider the track record of the construction company involved in the property development. “Your asset/investment has to appreciate and if the property is not well built, it is a depreciating asset” she stated. Investors in luxury property must also consider facilities management especially when investing in a multi unit development. In such developments, there are other people who are party to the property and investors need to make sure that there are plans for facilities managers to maintain the development overtime. She further advised investors to review the specification of the property one is looking into buying and when in doubt, hire a professional such as a project manager.
On the issues of property documentation, she advised property buyers and investors who have seen a property they are interested in to do a legal search on property title because property ownership goes beyond the physical property, rather, the heart of the property is in the property documents.
Due diligence on properties does not stop at the property documents. Property buyers should also perform financial due diligence when buying a property that has not been completed. Such due diligence enables a property buyer to check that completion risk has been significantly reduced or if possible eliminated.
Mrs Okonjo also advised real estate practitioners on maintaining a professional conduct of integrity, trust and due diligence.
Due diligence is a significant part of what Fine & Country does and the heart of a property is the documentation and real estate professional should also ensure properly executed mandates.
Some agents show clients a property without the documents of the property, little or no information of the state of the property and in some cases they carry prospective clients to a property they do not have access or keys to. These actions do not say well of the person who is presenting the property.
“People are spending a lot of money in property and they assess your integrity to trust and deal with you. Presentation is key in gaining the trust of a prospective client. It doesn’t say good of you if you take a client to a property without presentation materials, copies of documents to show a prospect the title of the property, keys and documentation of how you arrived with the authority to present that property” she stated.
Property buyers, tenants and investors should always ensure the property documents are in place and that the agent they deal with has the authority to act on behalf of the property owner.Some property buyers, tenants and investors have fallen victim and lost funds to people who have sold or leased a property without the authority to lease/sale and collect funds.
Mrs Okonjo also discussed the criteria that makes a property fall into the luxury category stating that various qualities make a property fall into this category and these qualities change from one location to the next. Overseas the criteria includes value of the property – a million dollars and up, location, presentation, facilities and finishing. However in Nigeria, it has a lot to do with space and size and if you have a property in a good location and exquisitely finishing but the size of the property is really small, clients will say it is not luxury.
At the moment, it is mainly Nigerians that invest in luxury property in Nigeria with quite a few but growing number of foreigners showing interest in Nigeria’s luxury property market lately.
Speaking on the growth in the Nigerian luxury property market, she stated that there has been growth in demand for luxury in Nigeria over the years with some demand also coming from the entry level part of the market (first time property buyers).
The most sort after location for luxury property in Nigeria is Lagos – Ikoyi, Victoria Island, Lekki. Upcoming luxury destinations include Eko Atlantic and Twin Lakes in Lekki. She also stated that Oniru could fall into the luxury property category in the near future.
The Nigerian property market is still active as people buy and sell properties for various reasons; selling off property to raise funds to invest elsewhere, changes in family situation & hence property use, relocation and even downsizing. Hence, buying and selling in the property market is a continuous cycle.
Maryanne is a member of the New York Bar and the Nigerian Bar Associations and pursued a successful legal career for more than a decade in United States of America, and Lagos, in addition to acting as Senior Special Adviser on Legal and Constitutional Matters to the President of the Senate of the Federal Republic of Nigeria.
In June 2005, Maryanne took the South African Real Estate exams and qualified for certification by the Estate Agency Affairs Board, and in May 2008, earned a certificate in Effective Real Estate Marketing from the National University of Singapore in conjunction with the Dubai Real Estate Institute. About five years ago, Mrs. Okonjo along with some partners brought the Fine and Country franchise to West Africa. Before now, she managed the Fine and Country West Africa and Nigeria Network from her office in Sandton, South Africa.
About The Property Show
The Property Show is a weekly real estate radio show with www.privateproperty.com.ng which airs live every Tuesday at 5PM on Inspiration 92.3FM and is hosted by popular OAP Ms. Wana Udobang (Ms. Wana Wana).
The Property Show comprises a 15-minutes interview with a Special Guest that will enlighten listeners on selected real estate topics and issues. Also, there is a 15-minutes phone in segment that enables listeners of the show make enquiries and receive expert advice from a pool of real estate experts and professionals.
Join us again next week for another interesting show.
