Get service of Estate Surveyor, Valuer to ensure returns on investment —ESV Okafor

By Mashe Umaru Gwamna

An Estate Surveyor & Valuers, Eugene Okafor, has urged potential investors to get the service of an Estate Surveyor and Valuer to ensure best return on investment.

He stated this yesterday while speaking to journalists in Abuja.

“Investment in real estate is only one of many options available to a prospective investor.

“It is understandably one of the most attractive options of investment given the many multi-millionaires and billionaires who attest to it as their source of wealth.

“Though capital intensive, it is safe and a good hedge against inflation as real estate is almost always in demand thus maintaining its monetary power.”

Okafor, however, said despite the fact that friends and relatives have tried and succeeded in their real estate venture is not reason enough to jump into it blindly.

“Circumstances vary. The approach matters. Most times the goal is to achieve maximum returns. This could however, elude the investor who is not guided by the Estate surveyor and Valuer from conception to completion.

“Consulting the Estate Surveyor and Valuer enables the investor to be well informed and guided as regards the state of the market; is it the best time to buy or sell? I would love to build high end apartments for the expatriate community as my target market, where are the best locations?

How much would it cost me from site acquisition to completion? How much could i potentially earn as net annual income after annual maintenance expenses? Is it worth it? These questions and more are sufficiently addressed in the Estate Surveyor’s Pre-Investment Feasibility and Viability Appraisal report to the investor.

The services of the Estate Surveyor and Valuer is key from as early as conception. He /She guides in taking the right decisions as to the best option of real estate investment. A certain developer fancied the idea of building a block of apartments in 2001 with the target of attracting as tenants, expatriate staff of embassies relocating to the Federal capital Territory, Abuja. The idea was good, borne out of foresight as embassies were under ultimatum at the time to relocate to Abuja. Site was acquired, building erected, but goal was not achieved. The project was poorly conceived and designed, without the input and guidance of an Estate Surveyor and Valuer who interfaces with the end users/tenants. Design and construction failed to address salient aspects which were unknown to the developer. There should have been greater emphasis on simplicity and functionality in design over bogus aesthetics. Bright and natural lighting, lush green soft landscaping as against total concrete flooring of courtyard etc., in homes is very important for such category of tenants as desired.

“Sometimes the concept is right but location is simply wrong, especially, from the perspective of safety. Security requirements and standards of most embassies and international organizations are high and so limit approval to certain districts. The developer, without the input of an estate surveyor in sourcing and acquisition of site could end up with the right property, but in the wrong location! This would not be helpful towards the investment goal of the developer as marketability becomes hampered. Unfortunately, one cannot physically relocate a construction from the wrong location to the right one. Location, location, location! A very crucial determinant of value!

There are also instances of properties encountering dwindling market and rental values when hitherto they flourished in value. Often times, a close look from the Estate Surveyor and Valuer if consulted would diagnose the problem and subsequently the “cure” or reversal. This could be as a result of overriding land use change within a locality, say, going from residential to commercial requiring the existing land use to blend in or peculiar issues with the property itself such as physical or functional obsolescence all of which can be remedied once identified. The Estate Surveyor and Valuer is also able to identify and recommend areas in need of change or improvement in the property which could ultimately unlock or restore value.

Bottom line, real estate investment is capital intensive. Since the goal is always to earn optimum returns, it is imperative that the investment is done prudently. Prospective investors in real estate would do themselves a world of good to avail themselves of professional advice as to the state of the market, range of real estate investment options available, cost, statutory requirements and supporting reports to make for well informed investment decisions.”

Eugene Okafor, Anivs, Rsv

Principal Partner, Eugene Okafor Consulting (Estate Surveyors & valuers), Abuja.