Executive Director, Touch of Valentine Homes, TOV Group of Companies, Mr Joseph Ojingba, in this interview with Nosike Moses, spoke on the challenges facing the real estate sector, and why their newly acquired estate, Plethora City at Igboye Epe, Lagos state is on the rescue.
Excerpts:
Tell us about your newly acquired estate, Plethora City
Specifically it is located at Igboye Epe. It’s a very peaceful estate, very serene environment, no hustle and bustle like the main areas in Lagos. There are a lot of landmark places close to the land. Very close to the land is FOB, that is a military base that secures the environment, now that everybody is talking about security in the land. There we have the Lagos State University campus very close to the land. Also there is a apothecary of technology, Igboye campus. We have St. Augustine University, very close.
The logistic hub, the food hub, all very close. From the estate to the new Igboye airport is 10 minutes drive, with a good road network. The road infrastructure is superb. It’s an estate that when we started two years ago, it was sold for 3.5 million for 500 square metres and 2.5 million for 300 square metres. But now, 500 square metres goes for 7.5 million. When Igboye airport is developed before the end of this administration, the value of lands there will increase.
What is your advice to buyers now?
My advice to buyers is to buy before the rush will start, that will force price increase. You know, anywhere there is an airport, like Ikeja, prices of land and accommodation are always high. People always like where they can live and travel easily. So when you are close to the airport, you have access to travel at any point in time. Businesses move very well around airports. Buyers of landed properties in Lagos, are always afraid of documentation. Our land in Plethora City is already in the government portal. When you go to the Ministry of Lands or the Surveyor General of Lagos, you key in our plan number from your phone through our primary, and you update your primary, it will give you the file number. If you key it in the Surveyor General’s office, you will see the name, Pretoria City, belonging to the Touch of Valentine Homes.
So it is something that is already provided. We have done up to record copy, but for now, where it was closed for further documentation, that is why we are still on that level. But we want to assure you that our land is fully registered in the Lagos State Ministry of Lands in the Surveyor General’s office.
We don’t just buy lands, we buy lands that are safe and secure.
Do you make provision for buyers who can’t pay at once?
Yes, we have installment payment. With a little of just 500,000, you can own a plot or more. We have installment payment zero to six months, interest-free. But when you begin to graduate, after six months to 12 months, you pay like 10%. So we have made provision for all categories of people so that it will not be difficult for you to own a property. If you pay 500,000, maybe you are earning more than 500,000 every month. In one year, that is about 6 million. So in the next two years, that is like 14 months, you have paid 7 million. 15 months, you must have paid 7.5 million. So we have that facility or we have that arrangement for people to be able to pay installment As low as 500,000, you just keep it. And each month, once you are faithful to paying it.
Can buyers partner to buy?
Yes, like I said, we have two or more categories of land you can buy. We have the 300 square metres, which is affordable to some people if you cannot get the 500 square metres. So the 300 square metres is just 5.5 million. So if you can come together, you don’t have any problems. You can have an agreement on how you are going to contribute the money, how you are going to share it. But normally, the lowest land we have is 300 square metres.
With your experience in the industry, how do you think we can solve the issue of housing deficit in the country?
Your question is right. But the challenge we are having in the industry is, as we are speaking now, government has increased the fees for document processes. It increased like 300% or more. So for owners of properties, what do you think they will do to their prices? They also recognise the increase from the government, over 300% increase for you to perfect your documents. This is alarming. That is the major challenge. The cost of building materials is very high. That is where the challenge is coming from. If things remain almost the same, people will not feel it so much.
What do you think the government can do to help low-income earners?
That’s what we are saying. This recent increase is not necessary. If they can go back to the status quo, then that will also help the land owners. The property owners also should be reasonable in their pricing of goods, either the land or the properties so that rent will also go down. But now rent will increase, as I’m telling you. If you have a good economy like those days, people wouldn’t struggle to own a house, own property, or even pay rent. If you go to the courts today, landlords are taking their tenants to court because they cannot pay rent. Their purchasing power is low compared to other countries.
What is your take concerning the real estate business in Nigeria?
The real estate business is good, but it’s tough. It’s only those that have a lion heart that will remain in the business. You have to develop a tough skin for you to remain in the business. It’s a very good business because land is the best asset anybody can acquire. Land does not depreciate. Rather, it is appreciated. So it’s the best asset anybody can acquire. So that’s why we’re encouraging young people to invest their money, so that the investment will grow and their families will benefit from it in the long run.
