African/ Nigerian Real Estate Development: An Opinion
Tuesday, 21 February 2012
Real estate development in Nigeria/Africa is challenged by undue high interest rates often on interest-only lending basis with terms and conditions that are almost like borrowing from a 'mafia' organization - knee-jerk lenders. With that is the 'tooth-pulling-with-a-toothpick' exercise one experiences acquiring clear and marketable title to land. Nigeria land rights is prone and fraught with land title frauds. In addition, absence of secondary market to absorb mortgage backed securities, poor underwritten quality of the assets, makes unleashing real estate market potential in Africa like expecting the sun to rise from the west.
The valuation of properties in sub-Saharan Africa is still driven by valuation methodologies based on UK system. While those methodologies are good, there is need to change some of the approaches to incorporate local situation and improve the skill and training of the valuers. African governments are not effectively disposed and suited to policies and programs that promotes efficiencies in land development
What is a Mortgage?
Friday, 23 December 2011
Definition of the term mortgage
A mortgage is a loan to finance the purchase of real estate, usually with specifiedd payment periods and interest rates
In most countries, a mortgage is the primary way that prospective homeowners have of buying a house, flat or land on which to build a property.
Mortgages are also commonly used to acquire commercial property, such as offices, factories, retail outlets or building containing multiple units such as office blocks, shopping malls and warehouses.