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How to Lease or Sell Your Property With Frankrealtors

Are you a developer or home owner? Leasing or selling your property can be such a herculean task when you are not properly guided as to how to go about it.

Below are few points to make it easier for you through FRANK REALTOR LIMITED

  1. Agents:  Who needs an agent when you can do it yourself? Why use an agent when you can use three? Usually home owners and developers are so eager for their property to get off the market that they engage the services of up to three or more agents to market and thereby causing unhealthy rivalry among the agents and confusion for interested buyer/tenant. As much as it is important for the property to get off the market, it is also important that you engage the services of Frankrealtors which you can trust. There have been several stories of tenants and even homeowners being duped by unscrupulous persons tagging themselves as agents but Frankrealtors is a well recognized and legalized property company that has gained stronger grounds in real estate services.

Some home owners even go as far as putting up banners in their own names, the danger in this is that since you are not a professional in this field, you will be prone to mistakes which in most cases may be detrimental. Frankrealtors with it’s experience and professionalism will help protect you from risks and future damages.

With all these at the back of your mind, you are well on your way to becoming a happy landlord/home seller. Reach out to Frankrealtors today.

2.  Fitness for purpose: Always ensure that your property is fit for the purpose for which the tenant wants it. Fulfill all your contractual obligations (including  but not limited to, the home should be wind and water tight, all statutory rates, levies and taxes should be paid and up to date,  etc). If you know your property is designed for residential purpose, insist on tenants who want it for that purpose. This is because if it is used otherwise, it would cost you a lot to restore it to that position.

  1. Know Your Client: Every diligent agent understands the importance of a KYC, you should too. If your agent is good, they should conduct a background check on the tenant. However, you cannot rule out the possibilities of human errors. Therefore, if possible meet your tenant before the transaction is concluded so as to be able to personally do a psychological evaluation of your would be tenant. Remember you owe other people a duty of  care to ensure that you do not jeopardize their safety.
  2. Reasonable Price: So you just purchased or built the property as the case maybe. You want quick returns on your investment; that is very good. It is however important that you pay attention to the market before fixing your price otherwise you run a risk of scaring off potential tenants/buyers. You really don’t want your property lying fallow for 2/3 years.
  3. Agreement: This stage is very important especially for leases (in sales transaction, the buyer drafts the agreement). The importance of an agreement to a tenancy relationship cannot be over emphasized as it spells out the rights and obligations of each party upfront. It is also very important that you get a qualified lawyer to draft this for you, Frankrealtors is also known for providing such services. DO NOT DO IT YOURSELF!!! Except of course you are a lawyer. It is better that you pay a lawyer for this service now than pay heavily in future for them to right your errors.
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3 Essential Features of Serviced Apartments

A serviced property is one which provides amenities for daily use so as to be as convenient as possible for its occupier.

Most offer shared facilities such as a swimming pool, tennis court, gym and other leisure facilities.

After conducting a survey, we noticed that the 3 areas that test the efficiency of serviced properties are the following:

1. Security

In most cases, security is outsourced to established security companies. Security services that would be offered include:

  • Physical Security Enhancement
  • CCTV
  • Estate Security
  • Perimeter Security Systems
  • Access Control System

2. Electricity

Electricity is often the first thing potential occupiers want to know before even considering a serviced property.

They want to know whether the property has 24/7 electricity and if not what are the running hours. Most residences that do not provide a 24/7 electricity service have running hours from about 7am till 10am and 6pm till 1am on the weekdays and long hours if no 24 hours on the weekends.

Generators

There should be at least one generator with a suitable KVA in order the carry the electrical load for all apartments. In apartments where electricity is 24/7, two generator may be needed. One to be used during the day, and the other, at night.

Check meters

Check meters are great for billing user efficiently.

3. Management and Maintenance

It is vital for serviced properties to have an on-site facility manager who is responsible for the day to day running of the estate’s operations. Some of his activities include:

  • property transactions (buying and selling)
  • organizing repairs and maintenance
  • project managing building and renovations

With frank realtors, this essential features comes first.

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Importance of Location When Buying A Property

Location is the single most important aspect in real estate development.

The reason is, while every other thing about a property can be changed, its location cannot.

You can renovate a building, expand it, make it smaller, or tear it down to build a new one, but you CANNOT change its location. This is why it’s very important you choose your location carefully.

The location determines the price of a property. When you locate your property in a desirable neighbourhood, there’ll be a high demand for it and you would sell at a premium.

In reverse, if it’s in an undesirable neighbourhood, demand would be less and this would reflect in its selling price.

This explains why houses with the same design and quality, but in different locations, would sell at contrasting prices. If one’s in Ikoyi, and the other, Ikorodu, the price of the former would probably be 3 times that of the latter.

frankrealtors advise you should consider the present and the future. A location which seems like such a big deal now might not be so in another five or ten years. The same goes for a location that appears to be low class at the moment.

You should be able to make proper valuation and projection to determine if that location is the right one for you. For example, are there industries springing up around there? What social class of people are predominant in the area? Is it close to major roads?

These sorts of questions help you determine the right location to invest your money.

Still, when in doubt, reach out to frankrealtors today..

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Rent vs Buy Decision

Control of real estate can be taken in two ways. One is to take permanent control i.e. take the ownership of the property. This has its own advantages as this allows for capital appreciation and also eliminates the need to pay rent in the future. On the other hand, one can pay rents and use the property as and when they require. Now, which of these decisions makes better sense as compared from a personal finance point of view is what is included in the rent vs. buy decision. This article provides a description of the rent vs. buy decision.

Compare Annual Expenses

The average person has the tendency to think of home buying as an emotional decision. Then, also there is the conventional wisdom out there, which claims that buying is always better than renting. However, when it comes to sophisticated real estate investors or pretty much anyone who’s concerned about how their money is being spent, the conventional wisdom does not hold true.
Instead, it is advisable to think about whether it is more profitable to buy a given house or would it make more economic sense to rent a house. The trick here is to compare the annual expenses. Pay careful attention to the word “expenses”. We are not comparing cash flows. Instead, we are comparing expenses.
When we buy a house, we have a mortgage to pay. The mortgage is made up of two components. One of those components is interest, and the other is principal. The interest component is purely an expense. Simply put it is money that is leaving your pocket today and the money that you will never see at a future date. Hence, this is the amount that we will use in our calculation. On the other hand, the principal component of the mortgage payment is your savings. Hence, it is like taking money out of one pocket and then putting it into another pocket. Since this money is savings, we will not include this in our calculation.
Hence, our expenses for owing the house will include interest (after deducting tax shield), property taxes, insurance and maintenance. This would be the amount of money that is consumed during the period.
On the other hand, the expenses pertaining to rent are pretty simple and straightforward. Firstly, there might be a one-time expense of paying a deposit to the landlord. However, this is not an expense it is just an interest-free loan as one will receive the same money back when vacating the house. Apart from that, there is also the monthly rental that has to be paid. Some people also factor in the opportunity cost of the down payment that has to be made to acquire a house. This means that if you did not buy a house, you would end up earning a certain amount of interest from your down payment money. This must be reduced from your monthly rental.
Hence, a basic version of the rent vs. buy decision would be to compare the annual expenses that would arise as a result of either buying or renting the house.

Future Annual Expenses

Also, it needs to be understood that neither buying nor renting are one-day decisions. These decisions require commitment and have to be executed over a period of many years. Therefore, while comparing annual figures is the right thing to do, one must ensure that they do not compare fdata for only the current year. Rather, the cash flow and expense projections should look several years into the future.
This is the part where the rent vs. buy decision gets complicated. This is because the decision is extremely sensitive to the capital appreciation that we assume in the future. If we change the capital appreciation by one percentage point, we would end up changing the net present value by a huge amount, for example $50,000. To top it up, predicting future real estate prices is extremely difficult. Therefore, one needs to be very careful of the future assumptions that one is building into the model as they can literally turn the decision upside down.

Riskiness

The rent vs. buy decision is also dependent on the risk appetite of a given individual. Some people have no qualms with the risk that a mortgage brings along. A mortgage increases the risk because there is interest to be paid and also the investor becomes highly sensitive to price changes in the market. Hence, the personal net worth of an individual can change dramatically if they have a mortgage because mortgage essentially is an extremely leveraged bet.
More risk averse people prefer renting. This is because rents do not fluctuate nearly as wildly as property prices do. Even if the rents do change dramatically in a given neighbourhood, the person has an option to move into a different neighbourhood or even a different city if required!

Stability vs. Flexibility

When we buy real estate, it’s like throwing anchor in a particular place. Our lives become stable. Usually, people decorate their homes based on their preferences and when they own the house they can do so. Also, renting involves frequently moving to different houses periodically. Buying a home cuts out this movement and as such provides stability.
On the other hand, renting provides a person with the flexibility to experiment with different neighbourhoods, different apartment sizes at different costs to see what fits them best. People whose jobs require them to move regularly are also better off renting.
To sum it up, the buy vs. rent analysis is partially financial and partially emotional. The financial part of the analysis is difficult to work out because of the future assumptions. However, one also needs to understand the level of risk and flexibility that they desire before jumping into such a decision. Frankrealtors is always available to guide you through whatever your decisions might be.

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Why Frankrealtors is Considered for Property search

Are you thinking of buying a home? Are you dreading having to walk through strangers’ houses? Are you concerned about getting the paperwork correct? Hiring an experienced, professional real estate agency like Frankrealtors can take away most of the challenges of buying.

Here are four reasons to consider Frankrealtors Limited for your home search. 

  1. Give you honest opinions of the price

Many times, agents will listen too much to their buyer’s opinion of market value and not be willing to give you their honest opinion of what it’s going to take to secure that property. Too often agents take your offer at any price and then try to ‘work’ both the seller and you while negotiating later. Frankrealtors prove to you that we have a belief in the price you are offering.

  1. Understand the timetable with which your family is dealing

You will be moving your family into a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. frankrealtor cannot pick the exact date of your move, but we will exert any influence we can, to make it work.

  1. Remove all challenges possible

Frankrealtors knows how to handle the challenges that will arise. Wisdom in overcoming challenges comes through experience in today’s fast paced market. Many challenges exist throughout this process that you do not need to go through. An agent with a track record of success has learned to avoid many of the potholes that exist. we have a strong understanding and experience with:

Mortgage/Financing (as well as a confident mortgage partner who you are working with)

Market Values

Negotiations

Technology

Contracts

Appraisal Discrepancies

Title Defects

Many more…

  1. FINDING the right home!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with purchasing. Frankrealtors dosen’t forget these motivations. Reminded that finding the right house is why you hired us. If we discover something needs to be done to attain your goal (i.e. rethinking price), we have the courage to inform you. The right home can come in many shapes and sizes, and some of these hard discussions are becoming even more important as we are facing an increasing real estate market with interest rates on the rise. It’s important that your needs are established and found sooner than later before the right home is out of reach.

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Understanding real estate investments

Real estate can be one of the best ways to build long term wealth.

As investors, we must be aware of the potential benefits and consequences of an investment. There are numerous potential benefits of real estate investing, such as tax breaks, financial stability, appreciation, and storage of wealth.

With many investment choices available, real estate is just one of our options to build long-term value. Real estate is unique, and in certain areas, exclusivity and lack of additional space to build has driven prices higher. For example, prices for a Banana island apartment in the last decade have risen faster than stocks or gold.

5 types of real estate investments

  1. Real estate investment trusts

A real estate investment trust (REIT) invests in income-producing real estate properties, such as shopping malls or multi-unit residential buildings. An investment in a REIT can offer investors income through payouts it receives from the properties it has invested in.

Investors can buy securities in public or private REITs. Public REITs are listed on a stock exchange and private REITs are traded in the exempt market. Buying and selling public REIT securities through an exchange is relatively straightforward, and its value is easily assessed through publicly- available prices. Private REITs are not listed on an exchange, making their securities more difficult to value and trade. Investing in a private REIT is different from and generally riskier than investing in a public REIT. There are also certain eligibility requirements that investors must meet before they can buy securities in a private REIT.

Generally, securities sold to the public in Ontario must be offered under a prospectus (a document that provides detailed information about the security and the company offering it), but there are some exceptions to this rule. For example, in Ontario, if a private REIT is looking to raise money from investors, they may be able to sell under a prospectus exemption in the exempt market. Learn more about how the exempt market works.

  1. Real estate limited partnerships

A real estate limited partnership (LP) is commonly used to develop a real estate property or to manage completed real estate properties, such as a condominium building. As an investor, you can buy securities in real estate LPs. Real estate LPs are governed by the terms of a limited partnership agreement, which may be complex. The LP is controlled by a general partner who manages the development of a real estate property. For example, the general partner may use money from investors to buy undeveloped land with the expectation of developing it or selling it at a profit. This gives investors the potential for growth if and when the land or development project goes up in value.

  1. Mortgage investment entity

A mortgage investment entity (MIE), also commonly referred to as a mortgage pool or mortgage investment corporation, is a mortgage financing business that pools money raised from investors to lend to borrowers.

MIEs will often provide financing or mortgages to borrowers who may not be able to obtain a loan from conventional sources, such as a bank. Borrowers typically use this financing to purchase single-family residences, commercial properties or development projects. A MIE will often hold a number of mortgages in its portfolio, reducing the potential risk to investors compared to holding a single mortgage.

As an investor, you purchase a security issued by the MIE (e.g. shares of a corporation, limited partnership units, trust units). The security’s value is derived from the value of the underlying pool of mortgages that are typically secured by the real estate properties. Investors have the chance to earn income (such as dividends) from the interest earned by the MIE on its portfolio of mortgages.

  1. Syndicated mortgage investments

In Nigeria, only mortgage brokers and agents licensed can engage in syndicated mortgage transactions on behalf of a brokerage, and only licensed mortgage brokers (not agents) can sign the required investor/lender disclosure statement forms. You can check that the individual or business is licensed.

A syndicated mortgage is where two or more individuals invest into a single mortgage against real property. Some syndicated mortgage investments are used to fund large scale real estate development projects. Before investing in a syndicated mortgage.

  1. Real property

You can buy a property as an investment and generate income through rental payments from a tenant, assuming that you charge enough rent to cover all costs associated with ownership, including any mortgages, taxes, utilities and maintenance.

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Understanding Luxury Real Estate in Nigeria

Luxury and real estate… Two concepts intertwined like a fine mat.

In Nigeria, the term ‘luxury real estate’ is generally used in a loose way, an example being a modest four bedroom apartment in an area best described as the lower class neighbourhood in any other part of the world being marketed as a luxury “four bedroom flat”.

To put this in perspective, we need to understand the definition of luxury.

Luxury is defined by the Oxford Dictionary as ‘a state of great comfort and elegance especially when involving great expense’.

Luxury, in real estate describes the aesthetics of a property encompassing not just the interior and exterior of its structure but its surroundings as well.

People often wonder if having a luxury structure is possible in an otherwise lower class environment.

The fact is, while luxury usually refers to eye catching structures in swanky environments; a luxurious building can still be situated in a lower class environment as long as it can boast of basic amenities and a good layout.

Luxury real estate begins from well crafted aesthetics to plush interior and a well laid out environment with state of the art of amenities.

Typical examples of areas with luxury real estate in Nigeria include Banana Island in Ikoyi, Treasure Gardens in Lekki and Asokoro in the FCT.

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Businessday Recognises Frankrealtor’s Founder, Nwafor Franklin.

Nwafor Franklin, the founder Frank Realtor Limited, on a recent interview with businessday newspaper discussed on tough economy situation affecting Nigerian Real Estate Market.

Even before coronavirus struck, property owners and many of the businesses that leased their space were under strain due to high vacancy rate and rents default.

Their woes seem to multiply now as jobs and the economic effects of the pandemic have hit incomes of thousands of people. Experts predict that property owners could face cash crunches as renters default and many renters will move in with family and friends or relocate to less expensive locations.

Nwafor Franklin, the founder Frank Realtor Limited, a real state agency based in Abuja Nigeria, has appeal to the government to support the real estate business owners especially in this period of economic downturn.

According to him, the major issue that continues to affect housing in Nigeria include constraints related to the high cost of securing and registering secure land title, inadequate access to finance, slow administrative procedures and of course the high cost of land.

Given these challenges, Franklin said, a sustainable action plan is required to reduce the housing gap in the country, noting that some efforts have been made, but there is a need to bring it all together.

“The harsh economic situation in Nigeria is affecting the real estate business. The reality could also be seen from the number of property listed for sales without positive outcomes. As a result, trillions of naira, which could have been used to boost the economy are stuck in the sector which has been considered one of the good things that happened in Nigeria before the recession,” Franklin said.

According to Franklin, “accessing some of the documents for procuring lands are becoming a burden. Government operatives in charge are not doing enough to ease this pressure which has harmed real estate business. Complaints have been registered but more efforts are needed to get the government attention to help resolve this issue.”

He added that in line with the government order to stay at home to limit the spread of COVID-19, his company have built an online platform where investors can easily explore and take part in some of the company’s business offers.

With a housing deficit estimated at 20 million units valued at N59 trillion, Nigeria has a huge housing challenge. This is why housing sector stakeholders say the recent pronouncement by the Central Bank of Nigeria’s (CBN) that it would be making funding intervention in affordable housing is a welcome development.

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Land Ownership Shouldn’t be for the Rich Alone – Nwafor Franklin

Prospect of an average Nigerian owning land and houses is waning speedily following the unstable and harsh economic situations, which have greatly affected many businesses.

As a result of that, most companies can barely pay salaries, while salary increments are becoming a lot more difficult. Even as dysfunctional mortgage system and salaries increase rate are getting much slower, buying a property has become harder for most people.

However, Mr Franklin Chibuzo Nwafor, a real estate agent in an interview with our editor stressed that owning a land can be somewhat lucrative. He added that every individual, regardless of class, should consider owning a land property as it can be a life time investment that will change their lives.

“In Nigeria, people complain about the hard economy. Even during lock-down, people still feed. The situation in Nigeria and possibly anywhere in the world can never be ultimately perfect. There must be lapses to fill but this should not be an excuse for not exploring chances”.

Stressing further on the issue he said, “Coming from a middle class family, I know first-hand the challenges of owning a house in Nigeria, especially in Lagos where I was raised. However, land and home ownership shouldn’t only be for the rich, because in developed countries, almost everyone owns a home, however small. So this fact is what drives our vision at Frank realtor limited, to deliver affordable life-changing land properties to the middle and low-income earners in choice locations of the country, one city at a time.

According to him, many real estate firms, like his company are now adopting installment packages which now allow an average Nigerian between aged 20- 25 to access lands with N20,000 deposit monthly.

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Harsh economy situation affecting Nigerian Real Estate Market

As the effects of COVID-19 are felt around the world, real estate companies are being impacted in different ways, largely dependent on region and asset class. In the near-term, real estate executives are concerned with preserving value and liquidity, attracting investors, including complying with governmental agency requirements. Experts in the real estate have further expressed worry that the sector which recorded growth towards the end of 2019 has receded due to uncertainty in the country.

Mr Nwafor Chibuzo Franklin, the founder Frank Realtor Limited, a real state agency based in Abuja Nigeria, have appeal to the government to support the real estate business owners especially in this period of economic downturn. According to him, the major issue that continues to affect housing in Nigeria include constraints related to the high cost of securing and registering secure land title, inadequate access to finance, slow administrative procedures and of course the high cost of land.

President Given these challenges, Franklin said, a sustainable action plan is required to reduce the housing gap in the country, noting that some efforts have been made, but there is a need to bring it all together.

“The harsh economic situation in Nigeria is really affecting the real estate business. The reality could also be seen from the number of property listed for sales without positive outcomes. As a result, trillions of naira, which could have been used to boost the economy are stuck in the sector which has been considered one of the good things that happened in Nigeria before the recession. Accessing some of the documents for procuring lands are becoming a burden. Government operatives in charge are not doing enough to ease this pressure which has had a negative impact on real estate business. Complaints have been registered but more efforts are needed to get the government attention to help resolve this issue”.

He said. He added that in line with the government order to stay at home to limit the spread of COVID-19, his company have built an online platform where investors can easily explore and take part in some of the company’s business offers.

“Following the order from the federal government to limit social gathering, my company have built an alternative solution that helps investors easily go through our portfolio online and pick any of their choices ”.