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The Refined Investor Series which held on November 27 at the Civic Centre is still being talked about widely in the industry.

Refined Investor Series is a real estate thought leadership event targeted at economic influencers, industry leaders, real estate developers, astute investors, and real estate/property enthusiasts. The theme of the event was “Building The Future: Where Do Skyscrapers Come From? Aimed at exploring the past, present and future of Nigeria’s skylines, and  HOW, WHO, and WHAT should shape it to attract the right local and global investors.

Our speakers at the event: Mr Jim Ovia, Mrs. Nnenna Obiejesi of Nestoil Towers, Mr. Pierre Edde of Eko Atlantic, Mrs. Yinka Ogunsulire of Orange Island, our very own Mrs. Udo Okonjo from Fine & Country West Africa, Mr. Idowu Thompson of First Bank Private Wealth, Professor Fabian Ajogwu S.A.N. and a host of other industry leaders and economic influencers gave compelling presentations on the Real Estate industry and the path to building an exciting future in Nigeria.

From L-R Pierre Edde, Development Director of South Energyx Nigeria; Udo Okonjo, Vice Chair Fine and Country West Africa; Nnenna Obiejesi, Executive Director, Nestoil Limited; Jim Ovia, Chairman Zenith Group & Quantum Luxury Properties; Yinka Ogunsulire, Managing Director, Orange Island; Frank Aigbogun, Publisher Businessday Newspaper at the recently concluded Refined Investor Series hosted by Fine and Country in collaboration with the Institute for Real Estate Excellence.

Some of the notable facts from the event include the following below;

1. Real estate sector is the 6th largest sector in the Nigerian economy with Lagos state covering 37% of real estate activity in Nigeria (according to the National Bureau of Statistics). The sector contributed 7.57% to the GDP in the third quarter of 2015

2. It was gathered that approximately 61.58% of real estate establishments in Nigeria are owned by individuals, sole proprietors who are personally liable for the full cost of the properties and have absolute control.

Udo Okonjo, Vice Chair Fine and Country West Africa and Nnenna Obiejesi, Executive Director, Nestoil Limited.

3. Nigeria attracted $3.96 billion (about N780.12 billion) in real estate development in 2014, which represents 11 percent of the total sum of $36.4 billion expended on infrastructure construction projects in the country.

Jim Ovia, Chairman Quantum  Luxury Properties and Zenith Group with Nnenna Obiejesi, Executive Director, Nestoil Limited and Yinka Ogunsulire, MD Orange Island.

4. The best solution for African cities (many of which are creaking under the weight of growing populations and rapid urbanisation rates), is to channel the growth into new satellite sites as they are properly located, developed, planned, serviced and managed. New urbanism is the most significant trend in African real estate today. New urbanism is the concept of creating new urban communities within our existing cities to cater for the growing population and the “emerging class” such as the Orange Island in Lagos.

Catherine Bickerstheth, Director Strategic Educational Advisory Services; Onari Duke; Yinka Ogunsulire, Managing Director, Orange Island; 

5. Real estate is a flexible, tangible and stable investment that can be adapted to suit most financial situations.

6. The Nigerian Real Estate sector is valued at N6.5 trillion, and estimated to grow at an average of 10% annually for next few years.

 George Chidiac, The One Eko Atlantic; Pierre Edde, Eko Atlantic; Onyema Okonjo, Giant Beverages

Continued from the last edition
Having pointed out some of the benefits of off-plan purchase, we would now consider the downsides of it.

• The most likely is the possibility of delays in completing or delivery of the project. This would affect home owners who want to move in immediately

• One has to commit to their purchase early on, put a non refundable deposit down, sign contracts and exchange usually within a relatively short period of time and then wait however long until the house is built. Because you are buying off-plan, you cannot see what you are buying and therefore do not know what the finished product would look like in reality. Buyers based their purchase on past record or reputation of developers, or word of mouth.

• There is tendency for developers to use sub-standard, low end materials for construction and finishing. Off-plan buyers run the risk of getting low quality products after investment.

• There might also be the risk of the property not been constructed because of financial problems encountered by the developer. Problems like this tend to make the purchaser loose time and other possibilities for investment.

• Many financial companies would prefer to provide funding to properties they can see visibly unlike the off-plan option, thereby reducing the financial options for buyers.

• For some developments, the developers make specific arrangements with banks for exclusive mortgages, although not all developments have this option. It is always wise to exercise caution and get competitive quotes from other mortgage suppliers before simply accepting the developer’s option.

• During the time until your property is built and ready to be handed over, there is a possibility of a change property market which could lead to an increase or decrease in the prices of houses. This means that in many cases, your new home could be worth more than the price it was bought. However there is always a chance that the property prices could crash and decrease so when the keys are handed over to you. This is not so much of a problem as the property can be kept for a while until property prices increases. However if you were looking to buy off plan properties as an investment and sell on soon after purchase, this means that you will probably not get the right price and be able to cover your costs so you may have to consider renting it out. It may not be possible to always predict whether the price of an off plan development will increase upon completion. For example although economic recessions are thought to reduce property prices, the price of Nigerian properties were on the rise despite the economic meltdown.

HOW THESE CONS CAN BE MITIGATED
The cons highlighted can be mitigated by implementing the following below;
1. Potential buyers should question the number of sales being reported by the developer. There are situations whereby developers communicate a fast sales rate of their projects which is in reality far from the truth. Buyers should always ask the tough questions, get conviction as well as proof before committing funds.
2. Check that you have all the information of the developer and their track records. Ensure that the fixtures, fittings and finishings promised in the display and printed material are guaranteed.
3. Investors must seek advice from an experienced solicitor to ensure there are no loopholes or ambiguities in the sales contract. All loopholes should be brought to your attention so you are aware of what you are getting into.

Even though much has changed over the years as a result of the improved dynamics in information technology and other factors, the actual art of selling real estate remains the same. No matter how bleak the real estate market appears to be, some people keep selling properties. There would be always be tons of real estate professionals who provide the same services you offer. Regardless of your profession be it banking, consultancy, journalism, copywriting, etc, there will be competition. Therefore it is imperative that one stands out. As a real estate professional, you can’t expect to stand out from the crowd using the same marketing strategy everyone else does. In order to stand out, you have to try different approaches. Below are some approaches which we would be highlighting in this discourse.

• Focus on your company’s brand and position your firm as experts

In real estate, branding is very crucial as it demonstrate credibility, improves the firm’s reputation ultimately leading to the closing of the sales. Building a brand that can stand firm as an expert in the industry does not take a day to create. It takes a combination of various factors such as paying attention to details, providing excellent customer service, excellent marketing presentation, properly trained personnel etc. It is essential that real estate practitioners acquire the required, relevant skills and knowledge to practice real estate. Currently, the Nigerian real estate industry is filled with non-professionals who practice real estate activities giving rise to cases of theft, wrong allocation of properties, deceits and misrepresentations thereby portraying the noble industry as one replete with dubious people which should not be the case. The success in real estate is – and always will be – about honesty, integrity, knowledge, professionalism, connections, timing, personality, and excellent customer service.

• Target Your Market More Precisely

Targeting one’s market is very important as it enables the real estate professional channel resources, time, and strategies to a focus-driven direction as opposed to channelling them to various contested aspect of the market. It enables the professional provide specialized solutions to target clientele rather than dealing with a broad, diverse market and at the same time ensure that the target market is large enough for business to be highly profitable. When a real estate professional is clear about whom his products and services really cater to, he then attracts more clients and even charges more fees because of his specialization.

• Adapt modern marketing tools

Marketing strategy tools such as hosting open house events, client referrals and pairing with the right company and the right realtor are tried and tested tools which are still very important to real estate transactions. The advancements in technology in recent times have also helped to bridge the gap between real estate agents and prospective clients. The internet plays a significant role in the real estate industry and has made online property search more popular and convenient to property buyers as they can browse the internet round the clock. The rise in popularity of smart-phones and internet connected devices has made it easier to access web information from any place in the world without the need for a home or office computer. Property listings can now be sent via emails, text messages and websites to target market instead of just relying on the print media thus ensuring that the brand and the product are always in the consciousness of the target audience.

• Get the right price
Competitive pricing is the most important part of any property sale, especially in a tough market. Everyone likes a good deal and when your pricing is right, the property is as good as sold. When homes in the area aren’t selling well, the best strategy is often to compare recent sales on similar properties in the area, and try to sell it a little bit lower than the market price. This saves you time, gives you a quick sale, and ensures you make a profit as not many resources would be needed to promote a fantastic product with a competitive price. Great pricing is king.

• Use professional imagery to sell.
The type of images used to depict houses, villas and mansions should be such that people can experience the fantasy woven around the property without even being there. Great imagery and well-written descriptions can really make a listing stand out and sell out as it encourages people to dream. When these are combined with well thought of and professionally designed videos, 2D, and 3D models, it would be very difficult for a prospective client to resist.

• Build Strong Relationships With clients
It is imperative that real estate professionals build and maintain strong relationships with prospective and existing clients. Building strong relationship ensures repeat clients for future transactions. This can be done by providing excellent, unrivalled customer service, being punctual to meetings and viewings, providing vital information to the clients and lots more Staying in contact with your prospects at least once a week and giving them ideas that they can use continues to demonstrate your expertise and present them in a personal, engaging way. Your prospects are more likely to buy from the person they know the best.

REAL ESTATE TRIVIA
Question
What is considered one of the slimmest buildings ever designed?
Answer
The Carnegie Hall Tower, designed by Cesar Pelli, is only 50 feet wide and 60 stories high.

In the real estate industry, there are several types of properties – residential, commercial, industrial, agricultural and special-purpose. Residential properties include properties that serve as housing or a dwelling, such as single-family homes, duplexes and other multi-family homes in urban, rural or suburban areas. Commercial properties are properties where business or commerce takes place such as shopping centres and malls, office buildings, parking facilities, hotels, motels or theatres. Industrial property is sometimes confused with commercial property as it has a commercial use but requires the use of heavy machinery and large scale manufacturing also takes place there. They include factories, warehouses, manufacturing firms, power plants. Special purpose properties include agricultural properties, churches, cemeteries, schools and government held land.
When marketing and selling real estate, there must be a plan, a style, and a strategy that should be implemented in order to achieve results. With the availability of thousands of agents in the industry –professionals and lay men alike, there is need to master the art of marketing and selling properties.

What is Property Marketing and Sales?

According to the 8th edition of the Oxford Advance Learner’s Dictionary, marketing is the activity of presenting, advertising and selling a company’s products in the best possible way. It is the bridge that links a product to the consumers by understanding the consumers and finding ways to provide products or services that meet their needs. It is the art of encouraging sales of your products through communication to the public by identifying your objective, performing research in the market, analyzing the research, developing a plan of action to achieve set objectives, and implementing the plan. Selling on the other hand is the act of completion of the marketing process whereby there is an exchange for the product with money or money worth. It involves creating a relationship with clients, identifying the client’s needs and wants, providing possible solutions that meet their needs and wants and closing the sale.
Property marketing therefore is the development and execution of strategies which include research, advertising, promotions all ultimately leading to the sale of the property. In today’s competitive environment, businesses of all sizes and structures must establish effective marketing strategies through various marketing tools to ensure successful sales. In real estate marketing, it is difficult to figure out the best strategy that will attract the attention of potential clients to your properties as there are no best strategies. The strategy that would work for one project may not necessarily work for another project.
In selling real estate, there are several essentials that need to be put in place. They are basically known as the 4Ps of property marketing – Product, Price, Place (Location), Promotion.
The ‘product’ is the type of property, development or apartment that is up for lease or sale. The ‘price’ is the monetary value that is placed on the property either for lease or sale and it is often subject to market forces of demand and supply, the design of the property, facilities available in the property, and even the property owner. The ‘place’ refers to the location of the property. In real estate, location is critical as the property in the right location hastens sales. The ‘promotion’ is the actual marketing of the property by the use mediums such as radio, television, print adverts and press releases to bring it to the attention to the target audience, etc. The effective combination of these factors leads to the sale of the property.

In order to drive people to act, the use of marketing materials cannot be over emphasized as people are visually minded and tend to buy what they can see, feel, and experience. All marketing materials should have a call to action. There are a number of options through which real estate can be presented to the public for purchase and they include:-
• Newspapers
• Magazines
• Postcards
• Business Cards
• Billboards
• Referrals
• E-mails
• Advertisements on the internet
• Brochures
• Website
• Television adverts
• Social and Business Networking
Once this happens, there is need to further encourage sales of your properties by giving out proper information about your property and highlighting its unique selling points as prospective clients would need you to justify why they should buy your property and not the other thousands of properties that are available in the market. Information such as the location of the property; the lease or sale price which must be comparable with that of properties having similar features; exciting features and facilities on the property; the tenure on the property; adjoining developments that might be of interest to a potential client such as schools, supermarket, recreational centers, hospitals, etc must be made available to prospective clients.
Marketing is not instant and it takes a while for the strategies to be set in place and promoted consistently to ensure that it remains in the minds of the target audience. It has been observed that longer marketing strategies go a long way in increasing the number your clients ultimately leading to sales but care needs to be taken so that the target audience is not bored and the product gets disregarded hence the marketing needs to be creative, engaging, dynamic and interesting.
(To be continued)

REAL ESTATE TRIVIA
Question
What is considered one of the slimmest buildings ever designed?
Answer
The Carnegie Hall Tower, designed by Cesar Pelli, is only 50 feet wide and 60 stories high.

Interviewing for new housemates is a stressful business.

You want to get all the important information you need without coming across as a control freak or a detective who’s compiling a comprehensive criminal history report on any potential house fellows.

You don’t want to ask too many questions but you want to ask the right ones, so you get the answers you need before accepting a new housemate into your home.

We’ve narrowed down the top five most important questions to ask a potential housemate before they move in.

Guaranteed to get you the information you need without making yourself look like an obsessive weirdo.

Most states have a least one provincial centre which plays host to a seat of academic endeavour. These institutions can make a big difference to the local economy and are attracting Gen Y investors and others who want to get a foothold on the property ladder.

Regional universities typically cater for out of town and overseas students, providing lots of benefits to the local property market. Many students decide it’s better to live off campus and universities are also big employers, resulting in a steady stream of tenants.

Listed here are some examples of regional cities where university campuses play a prominent role in the local market.

Something often overlooked when deciding to renovate is the reality you may have to live somewhere else for part of the process.

A major renovation, extension or build means your home may temporarily have no running water, flushing toilets, electricity, walls and/or a roof.

This lack of services and amenities may last a few days or half a year, depending on the scale of the works.

So, short of pitching a tent in the backyard, what are your accommodation options during this domestically disruptive time?

Professional renovator Bernadette Janson, founder of The School of Renovating, has lived through two major home renovations.

The first experience was while her four children were quite small, which created safety issues.

By the second time her children were teenagers: “They saw it less of an adventure and more of an inconvenience putting a strain on relationships,” she says.

“My advice to anyone considering living in a property while renovating is to avoid if at all possible,” says Sydney-based Janson.

“The more complex the renovation, the more difficult it will be. I have lived through two structural renos and both times found it extremely challenging.”