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PROPERTY MAX RESULTS LTD; RESPONSE TO COVID-19 PANDEMIC.

Posted on 23 March, 2020 at 8:30 Comments comments (3)

MARCH 23,2020

APPENDIX A

PROPERTY MAX RESULTS LTD; RESPONSE TO COVID-19 PANDEMIC.

In response to the growing concerns about COVID-19, commonly referred to as coronavirus, Property Max Results LTD. is providing this guidance to help both our staff and clients respond to the coronavirus's impact on the real estate industry.

Kindly follow the guidelines set out by our professional training and governing body, NAR (NATIONAL ASSOCIATION OF REALTORS)

 

What unique issues does coronavirus present to the real estate industry?

When an infectious disease, such as coronavirus, is associated with a specific population or nationality, fear and anxiety may lead to social stigma and potential discrimination. REALTORS® must be mindful of their obligations under the Fair Housing Act, and be sure not to discriminate against any particular segment of the population. While the coronavirus outbreak began in Wuhan, China, that does not provide a basis for treating Chinese persons or persons of Asian descent differently.

May I ask clients or others I interact with in my real estate business if they have travelled recently, or have any signs of respiratory illness?

Yes, you may ask clients or others about their recent travel, particularly to areas identified as having an increased risk of coronavirus. To avoid potential fair housing issues, be sure to ask all clients the same screening questions based on current, factual information from public health authorities.

I typically drive my clients to showings. May I refuse to drive potential clients to see homes?

Yes. However, be sure that any change to your business practices is applied equally to all clients. You may refuse to drive clients who show signs of illness or reveal recent travel to areas of increased risk of coronavirus, or you may instead decide to stop driving clients in your car altogether, and simply arrange to meet clients at a property. If you do continue to drive clients in your car, it is a good idea to frequently clean and disinfect surfaces like door handles and seat belt latches, and to ask clients to use hand sanitizer when getting in and out of the car.

What precautions should brokers/Agents consider taking in their offices?

Brokers should use their best judgment when formulating a plan. In addition to performing regular environmental cleaning with special attention paid to frequently touched surfaces, brokers should implement a mandatory "stay-home" policy for any staff member or agent exhibiting any sign of illness. Brokers may want to consider imposing a mandatory or maximum flexibility remote work policy for employees and instructing agents to stay out of the office

What preventative measures may be taken to reduce the risk of contracting and spreading coronavirus?

 

The same preventative measures recommended to prevent influenza are also effective in reducing the risk of contracting or spreading coronavirus. These measures include:

 

Staying home if you have a fever, cough, shortness of breath or any other cold or flu-like symptom.

 

Washing your hands frequently with soap and water for at least 20 seconds. If soap and water aren't available, use an alcohol-based hand sanitizer.

 

Avoiding touching your eyes, nose, and mouth with unwashed hands.

 

Avoiding close contact with anyone who is sick.

 

Cleaning and disinfecting frequently touched objects and surfaces.

 

Covering your mouth and nose with a tissue when you cough or sneeze, or cough or sneeze into your sleeve.

Should I still conduct open houses?

Speak openly and honestly with your seller about the pros and cons of holding an open house. Assess the risk based on your specific location and direct your clients to local and state health authorities for specific information about the severity of the risk in your area. You could also propose alternative marketing opportunities for your seller's consideration, such as video tours and other methods to virtually tour a property.

If you do hold an open house, consider requiring all visitors to disinfect their hands upon entering the home, and provide alcohol-based hand sanitizers at the entryway, as well as soap and disposable towels in bathrooms. If you decide to do any cleaning at your client's home, be sure to check with your client in advance about any products you plan to use.

After the open house, recommend that your client clean and disinfect their home, especially commonly touched areas like doorknobs and faucet handles.

Kindly keep in touch with your local health authorities to report any suspected case of COVID-19 or contact the Nigeria Centre for disease country via . https://ncdc.gov.ng/

Akinwunmi Awoyode MSc. CIPM (UK)

Principal Partner

 

COVID 19 INFORMATION

Posted on 23 March, 2020 at 8:25 Comments comments (0)

MARCH 23 2020

NB; Kindly use with Appendix A.

COVID 19; REMOTE WORKING SCHEDULE.

COVID-19 is rapidly changing how businesses operate. We recognize that this pandemic will change

how we interact socially, how we work and our personal hygiene. In light of this unprecedented

situation, Property Max Results Ltd in line with the government rules on measures to contain the

spread of this Virus will as from Monday 23 rd of March 2020 encourage work-place social distancing.

This means that we will work remotely until further notice.

It’s imperative to note that while keeping our staffs safe, we would also like to partially keep the

official duties running (remotely). As a result of this, we have introduced the following key rules for

our team to adhere to while working from home.

Set Yourself Up for Success:

I. Meet with your manager to determine how your work and job requirements can be done

remotely from your home either full time or certain days of the week.

II. Consider the effect of working at home on your customers, co-workers and manager.

III. Determine your technological needs and agree on securing the tools and appropriate

training to ensure productivity at home.

IV. Establish measurable performance goals and expectations.

V. Discuss concerns and potential challenges of working virtually and ways to address these

issues.

VI. Determine a process for regular check-in meetings to discuss how the virtual work

arrangement is working – for you and the business.

VII. Check in frequently with your manager and co-workers to discuss how things are going and

determine how to overcome challenges that may be identified.

Set yourself up for success – at home

 

I. Set up an appropriate workspace that is separate and distinct from your “home space” and

conducive to working effectively without interruptions.

II. Design your workspace for efficiency, with all the documents and materials you need.

III. Create a healthy workspace – good light, comfortable temperature, ergonomic adjustable

chair, computer keyboard and mouse suited to your needs, telephone headset, etc.

IV. Set boundaries with your family members.

V. Ensure your family members understand that although you are home, you’re working.

VI. Establish ground rules for work hours, interruptions, noise, etc.

VII. Do not use working from home as a substitute for child care.

Focus on performance and results.

 

I. Be clear on your priorities, focusing on the expectations, tasks and responsibilities you and

your manager agreed upon as measures of success.

II. Be proactive in communicating regularly with your manager, co-workers and customers to

stay connected and resolve issues as they arise.

III. Ensure that your accomplishments, project status, outcomes and deliverables are visible to

your manager and co-workers as appropriate – avoid being out of sight, out of mind.

IV. Invite and encourage feedback from co-workers, manager and customers about how your

virtual work arrangement is affecting them.

Be accessible, responsive and reliable

I. Utilize appropriate communication methods to stay connected with your manager, co-

workers and customers.

II. Update your email, voicemail greeting, staff calendar etc. on a regular basis with your

schedule, availability (or not) and contact information.

III. Check your email, social media platforms and voicemail frequently.

IV. Demonstrate trustworthiness by being predictable, reliable, taking promises seriously and

following through on commitments.

V. Manage your work and preserve time for your life

VI. Find ways to “disengage” from work and have quality personal time when traditional

boundaries between work and home life are no longer clear.

VII. Set reasonable limits to your work hours and determine how to meet work requirements

and still preserve personal time.

VIII. Build in short breaks and work during periods of peak energy.

Please use this guide with another document titled Appendix A which set out some precautionary

measures set out by for real estate agents to discharge their duties safely and remotely during this

pandemic crisis. Remember you can always reach your manager by email/phone call anytime

between 9am-5pm (Mon-Sat).

Akinwunmi Awoyode MSc. CIPM (UK)

Principal Partner

IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF A NATION.

Posted on 13 April, 2018 at 6:50 Comments comments (4)

IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF A NATION. Real estate is one of the most important sectors of any economy. The affordability of real estates, rental prices and changes in those prices has a direct impact on the wealth of property owners and tenants and their consumer spending. So, What then is real estate? There are various definitions both from within and outside the real estate industry, but in this article, it’s important to view real estate in the business context. According to the business dictionary, Real Estate can be defined as; ‘’Land and anything fixed, immovable, or permanently attached to it such as appurtenances, buildings, fences, fixtures, improvements, roads, shrubs, and trees (but not growing crops), sewers, structures, utility systems, and walls. Title to real estate normally includes title to air rights, mineral rights, and surface rights, which can be bought, leased, sold, or transferred together or separately. Also called real property or realty.’’---- Business Dictionary. Types of Real Estate Residential Real Estate; The most common category here is single-family homes. There are also condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes and vacation homes. Commercial Real Estate; They includes shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are often considered commercial, even though they are used for residences. That's because they are owned to produce income. Industrial Real Estate; Includes the manufacturing buildings as well as warehouses. The buildings can be used for so many institutionalized purposes, either research storages or so on. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction,, and sales are handled differently. Land; Includes vacant land, working farms,, and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly. HOW REAL ESTATE IMPACT THE ECONOMY The contributions of real estate sector to any country’s economy cannot4 be overemphasized; it’s a sector whose impact has been felt tremendously in economies of both developed and developing nations. Let’s take the a 44short look at some key real estate segments and it’s contributions to the economy from a global perspective. EMPLOYMENT; Construction is an important sector that contributes greatly to the economic growth of a nation. The Construction Industry is an investment-led sector where government shows high interest. Government contracts with Construction Industry to develop infrastructure related to health, transport as well as education sector. For the prosperity of any nation, Construction Industry is quintessential. Furthermore, during real estate boom (A period whereby demand for housing is more than supply), construction alone can produce thousands of jobs both for skilled and unskilled graduates. Ranging from architects to site engineers to surveyors, town planners, project managers, artisans and laborers all can be engaged in the construction of residential, commercial or industrial properties. Which will, in turn, add to the GDP of such economy. INFRASTRUCTURE; According to Francis Chinjekure ‘’Globally, real estate sector is one of the most profitable ventures of several economies and one of the indices of measuring economic growth of a society. It is a sector that mirrors the economic viability and sustainability of an economy and its poverty level. In generality, the level of infrastructure development in a country says a lot about its economic status. Unfortunately, the role of real estate in economic growth is overlooked in developing economies like Africa and thus its potential is often missed’’. GROSS DOMESTIC PRODUCT (GDP); A looks at how the housing market and changes in house prices affect the rest of the economy. In summary: Rising house prices generally encourage consumer spending and lead to higher economic growth, while a sharp drop in house prices adversely affects consumer confidence, construction and leads to lower economic growth. Additionally, A rise in house prices creates an increase in wealth for householders. As a consequence of this increase in house prices, householders will generally: Be more confident about spending and borrowing on credit cards. They can always sell their house in an emergency. A rise in house prices enables homeowners to take out a bigger mortgage. Banks can lend more on the basis of the increased price of the house. Households could use this bigger loan to spend on other items. This can create a significant increase in consumer spending. For example in the UK, in 2006, with rising house prices, equity withdrawal added an extra £14bn to consumer spending. However in 2008, with falling house prices, equity withdrawal was -£7bn. (people taking opportunity to pay off mortgage). In a simple approach, this analysis means that when there is a fall in house prices, there tends to be a negative wealth effect and a negative impact on economic growth. Because households see a fall in house prices, their main form of wealth declines, this reduces their confidence to spend. They are more likely to devote a higher % of their income to try to pay off their mortgage early. Also, falling house prices cause more people to be trapped in negative equity (a situation where your house is worth less than outstanding mortgage). This causes a fall in spending and precludes any opportunity for equity withdrawal. PROPERTY CYCLE AND THE ECONOMIC GROWTH; The booms and busts of real estate prices echo those of the real business cycle. Generally, The average duration of housing appreciations and depreciation in a typical housing cycle is approximately six and five years, respectively (Bracke 2013). So the housing market would appreciate by 5.4% per year (the sample mean in appreciations) for the first six years and then depreciate by 3.2% per year (sample mean in depreciation) in the five years that follow. Both will have the impact on the economy. Therefore, in conclusion, Real Estate is an important part of the economy and is accountable for an extensive part of its development, advancement of any nation’s infrastructure stand & major originators of trade and industry activity. In general, it’s a fact that, more money has been made in real estate sector alone than all other financial investment streams combined globally and evidence of this are shown in most world top billionaires, people like Donald Bren with a net worth of $15.1 billion, President Donald Trump with a net worth of $4.5 billion. Rick Caruso, David Lichtenstein, and other world billionaires were listed on Forbes magazine to have made their fortune in Real Estate. This could be because the real estate sector has strong connections with various industries such as tiles, paints, fittings & fixtures, cement & steel to mention a few, so prosperity in this sector means wealth for all other sectors, thereby positively impacting such country’s economic growth. Although, like every other investment, real estate might experience ups and down at certain time, but in general like the former US president said; ““Every person who invests in the well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” -- Theodore Roosevelt, U.S president. ‘’Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” -- Franklin D. Roosevelt, U.S. president. Prepared by; AKINWUNMI AWOYODE. MSc (Real Estate Management and Investment.UK), CIPM (UK). International Member of National Association of Realtors. NAR. Principal Partner; PROPERTY MAX RESULTS LTD.

BUYING PROPERTY IN NIGERIA; THE COMMANDMENTS

Posted on 12 July, 2017 at 7:50 Comments comments (2)

 

As enumerated by Barrister Matthew:

10 commandments of Buying A Land in Nigeria.

Thou shalt have a budget.

 

Thou shalt carry out a proper land/property verification both legal and social.

 

Thou shalt always involve professionals in Property matters

 

Thou shalt not buy any property through pictures alone

 

Thou shalt not buy property that smells of trouble

DO NOT PAY ANY PROPERTY TRANSACTION IN CASH

THOU SHALT not listen to the seller's opinion only

Thou shalt put all property transactions in writing including payment.

TAKE PHYSICAL POSSESSION OF THE PROPERTY BOUGHT IMMEDIATELY.

 

In Real Estate Business Your money is your power, once you have paid someone for a particular property in a country like Nigeria believe me you have transferred your power to him. Hence, do not buy any landed property without performing a Land Check on the Owner, the Land and the Documents the Seller possesses. There are so many things to cross-reference at this stage that is why you must take your time and be patient because it is your money that is at stake not the seller or Agent’s money. If you fail to take this step, then you would be left alone to wallow in your own self-pity and misery because the seller would be long gone with your money.

Even a distress sale, there might be grumblings from sellers or agents to weigh you down or push you to do something in a rush such as “ The owner is having problems and that is why is selling at this price, or A lot of people are rushing this land and if you don’t pay now, the land may be gone” etc. Don’t listen to them. The land was there before you showed interest in acquiring it and it would still be there after you do your search. Some sellers and agents are just eager to line up their pockets with your money so they throw you that line to you to scare you.



Need a professional Estate Agent? Why not schedule a free Real Estate Investment consultation with us: Property Max Results Ltd RC1298947

 

Address: 10 Ladoke Akintola Avenue Off Aare

Adjacent J-RAPHA Hospital New Bodija Ibadan.

 

20, Oshobu Street,

Tabon Tabon Orile

Agege Road, Lagos

Phone: +234 (0) 908 481 6506, 703 316 3510

 

Website: www.propertymaxresultsltd.com

Email: [email protected]

[email protected]

Facebook: facebook.com/propertymaxresultsltd

 

Twitter: @pptymaxresults

Instagram: Propertymaxresultsltd


YOU NEED MORE THAN ''AGENTS''

Posted on 5 July, 2017 at 11:35 Comments comments (0)

We are more than just estate agent; At property Max Results Ltd ( A registered Professional Real Estate firm) we give more than what roadside ''agents' offers. We don't just assist you in buying or selling of your Real Estate for commission sake, as analysed by Emeka D. Eleh, we stay with our clients every steps of the way by;

Determining the value of all descriptions of property and of the interests therein;

Managing and developing estates and other businesses concerned with management of landed property;

Securing the optimal use of land resources and its associated resources to meet social and economic needs;

Determining the structure and condition of buildings and their services before advising on their maintenance, alteration and improvement;

Determining the economic use of land resources by means of financial appraisal for the building industry and

Selling (whether by auction or otherwise), buying or letting (as an agent) of real and personal property and any other interest therein.

As a professional Estate Surveyor and Valuer, we offers:

Valuation of interests in land or buildings, plant and machinery, furniture, fittings, equipment, motorized vehicles, engineering and infrastructural installations, etc.

Valuation for the compulsory acquisition of interests in land and buildings for compensation purposes.

Feasibility and viability appraisal of development projects

Valuation for tenement rating purposes

Property sales and leases (Estate Agency)

Property and Facility Management

Project Management

Building Maintenance Management

Property inventory and audit

Real estate asset Management

Land Use planning and analysis

Advise on property rights and transfer.

Property Max Results Ltd RC1298947

Address: 10 Ladoke Akintola Avenue Off Aare

Adjacent J-RAPHA Hospital New Bodija Ibadan.

20, Oshobu Street,

Tabon Tabon Orile

Agege Road, Lagos

Phone: +234 (0) 908 481 6506, 703 316 3510

Website: www.propertymaxresultsltd.com

Email: [email protected]

[email protected]

Facebook: facebook.com/propertymaxresultsltd

Twitter: @pptymaxresults

Instagram: Propertymaxresultsltd

HOW TO IDENTIFY AND BUY GENUINE LANDED PROPERTY IN NIGERIA

Posted on 13 March, 2016 at 18:50 Comments comments (0)

HOW TO IDENTIFY AND BUY GENUINE LANDED PROPERTY IN NIGERIA ‘’Everyday thousands of Nigerians at home and abroad hope to buy lands in Nigeria, more especially in popular cities such as Lagos, Abuja, Port Harcourt, etc but the common reoccurring theme that filters through their minds is how to safeguard their money so that they won’t be duped or lose their lands coupled with the terrifying stories that normally accompany the smooth transfer of these lands because of the prevalent nature of Land Scam artists and dubious Real Estate companies that specialize in defrauding prospective land purchasers’’(Mathew 2014). How to avoid been duped in Nigeria Property transactions: 1) The first thing any intending buyer (Especially when buying landed property in Nigeria) should have in mind is a budget. It’s necessary to have a budget for so many reasons, part of which are the extra charges that are associated with buying/transferring of ownership of a landed property in Nigeria among which are: 1 a) Legal fee;5 % of the cost of the land b) Agency fee; 5-10%(negotiable) of the cost of the land c) Survey plan; 100,000 naira and above (depending on state and location of the land) d) Cost of perfecting your documents with the Government at the Land Registry such as a C of O, Governors Consent, Ratification fees, Survey Land information, etc. e) It’s always advisable, although not mandatory to have a cost in mind to put a fence around the land immediately after purchase to secure it. 2) After you have set a budget for yourself considering your resources, then you are on the route to becoming a landowner but care must be taken as this is the most sensitive stage in order to avoid been duped. The first thing you must after been shown any landed property for sale is to ‘’Demand for the Documents that the Owner(s) Possess’’: To me it’s like attempting to buy a car from an auto dealer or independent seller without asking him to show you his driving licence and car papers? You know what will happen to you when you are caught driving without proof of ownership from the previous seller. The same rule applies to buying a land. Anybody trying to transfer land or property to you must show you the documents he executed with the previous owner so as to show proof of Ownership or else anything you are buying from him is a stolen property and it’s as simple as that (Mathew 2014). 3) Carry Out a Proper Land Verification Search In Real Estate Business Your money is your power, once you have paid someone for a particular property in a country like Nigeria believe me you have transferred your power to him. Hence, do not buy any land without performing a Land Check on the Owner, the Land and the Documents the Seller possesses. There are so many things to cross-reference at this stage that is why you must take your time and be patient because it is your money that is at stake not the seller or Agent’s money. If you fail to take this step, then you would be left alone to wallow in your own self-pity and misery because the seller would be long gone with your money. Even a distress sale, there might be grumblings from sellers or agents to weigh you down or push you to do something in a rush such as “ The owner is having problems and that is why is selling at this price, or A lot of people are rushing this land and if you don’t pay now, the land may be gone” etc. Don’t listen to them. The land was there before you showed interest in acquiring it and it would still be there after you do your search. Some sellers and agents are just eager to line up their pockets with your money so they throw you that line to you to scare you. There are so many reasons why you must do your search. To verify the owner, you need to ask people around who the owner is, his character, can you trust him, why is he selling, why now? How does he got the land previously? What is prompting him to sell? Is there any dispute or litigation burden on the land that he is trying to shift to you? Has he bought a bad land and trying to dispose it quickly before the problems surfaces? The next thing is to verify the authencity of the land; you have to find out if the land is not under government acquisition, as an intending buyer it’s your responsibility to find out if the land’s location is not contravening the government land act. And finally investigating all the documents the owner has and ought to have such as a Survey plan, deed of assignment, contract of sale, C of O, Governors Consent, Gazette, Letter of Allocation, Receipts, Deed of Transfer, Power of Attorney, etc. The checklist is too much but it must be done so that you are satisfied 100% of the title. 4) Always Involve Professionals in Land Matters before you buy a land: Surveyor, Architect and lawyer are the team you need the most in land matter, it’s essential to have a lawyer to draw up the contract, as any other form of contract is null and void and might not be accepted in court. Surveyor would be the one to draw up the survey plan, it’s advisable to use a registered surveyor with a seal, and he’s the one to show you the description of the land you are about to buy. Lastly the architect will tell you what type of house could be built on such land, it’s very important to engage one because he’s capable of giving you full professional information on the size, shape and probably the cost of erecting a particular structure on any land. DO NOT DO SELF SERVICE,THAT TYPE OF BUILDING YOU WANT MIGHT NOT FIT FOR THAT LAND YOU ARE ABOUT TO BUY. 5) Do not buy land without viewing Just as the saying do not judge a book by its cover… I know some big estate developing firms that displays their large acre of land on a virtual survey plan like world atlas and will ask you to point to any plot of land you desire, my advice is DO NOT DO IT. No matter how beautiful the land or the environment looks on their flyers, posters or website, make sure you visit the site to see for yourself because many Real estate developers and Agents have scammed thousands of Nigerians using beautifully drawn flyers promoting lands that are equivalent to Aso rock estate in choice locations, only to realize that they are dump yards not fit for human habitation. TO BE CONTINUED………………………..

DRIVERS OF SUSTAINABLE BUILDINGS

Posted on 13 February, 2016 at 16:40 Comments comments (0)

DRIVERS OF SUSTAINABLE PROPERTY

Legislation: The treat of legislation according to Sarah, S., Louise, E., & Philip, P., (2005), in a survey conducted across UK has been described as the first driver of sustainability in property sector, in the report summary, treat by legislators in various countries (UK for instance) has been observed to be the key driver in changing attitude of investors to possibly understand the financial worth implication of sustainability agenda. Furthermore, the last decade has seen substantial shift in attitudes towards sustainability, not only has sustainable development gained more attention within political debate between national and international level but has also become an important part of co-operate agenda in development economics. (Sarah, S., Louise, E., & Philip, P., (2005)). ENERGY EFFICIENCY: Energy efficiency is another driver for sustainability in property sector, because the ability for a building to perform or rather its efficiency is limited to how the building is designed, engineered constructed, operated and maintained. In order to achieve greater energy efficiency in a building depends on so many factors which include the building envelop, system types, energy end use, e. plugs loads and the operation of the building with regards to maintenance practices. (IFMA 2010). In their report of survey in 2010, IFMA foundation established that simple strategies to reduce heating and cooling loads include appropriate insulation, optimizing window glazing area, minimizing the filtration of air outside and the use of opaque roofing materials. Depending on how much daylight penetrates through the window into the interior space, the report mentioned that using common design features will give room for the enhancement of natural daylight into the building through the use of skylight, light shelves tubular day lighting and other means of day light harvesting will not only sustain a building but will also reduce the cost of energy consumption. (IMFA 2010) Similarly, in comparison IMFA report in 2010 on energy efficiency of a building has assumed that the energy cost of a building can be driven by so many factors among which are: Geographical, Climate and building type location. Even though energy cost has been argued by many professionals to the most controlled able expenses of any property unlike other expenses like taxes and insurance but if sustainability in this sector find its way globally we would not only pay less on energy consumption we might have a lot energy saved for the generations to come. For instance CEBECS (2003) in their energy saving survey arrived at the consumption of energy is about $1.09 per sq. ft. for all US building, $11.73 per sq/m for office building, various survey in US on energy saving assumed prices of energy has increased over the last 7years. CIOCHETI & McGowan (2009) rated the average commercial energy cost to have increased by 25% since 2000.Hence it's clear that the energy efficiency in a building is a pressing issue globally which according to IMFA (2010) report confirmed that building and industry energy consumption is growing even more intense and there is a call for sustainability in this regards OCCUPIER: The agitation of occupiers on sustainable homes cannot be overlooked when talking about drivers of sustainability in real estate. Occupiers according to Wittneben (2014) in a survey where over 100 stakeholder in real estate investment participated Emphasized that as liquidity improve on both the investors and occupier market a trend toward sustainability is seeing,. For occupiers as long as energy costs are very small fraction of rental value, they are not likely to be a crucial decision in their selection. See,Y., & TU (2011) in their survey report on Singapore property market have seen occupiers willingness to pay more on sustainable building once delivered and lived in, since they can verify the ''green'' claims by checking the electricity bills which implies that most of the occupiers in Asia, (or in Singapore precisely) are willing to pay for sustainable building after physical delivery and testing of the unit, so on the part of the investor it might likely to have a green lease with conditions if possible. The stand of occupiers would be discussed further in the circle of blame. THE CIRCLE OF BLAME Source: (World Green Building Council, 2013) Occupier. ‘We would like to have more sustainable buildings but there is too little choice’. This statement is the general opinion of occupier of real estate globally which has resulted in so many survey carried out across the world just to verify and affirm the position of occupier on sustainable buildings. Taking the report of Lasselle (2008) in a survey where over 400 occupiers participated globally it's clearly known that occupiers want sustainable buildings they are even willing to pay more for sustainable property but the availability is viewed by occupiers as sporadic. According to Jones Jang survey where over 47% of occupiers responded globally it was seen that the need for sustainable building by occupiers is not the question anymore, it's even the question of when will it be a critical issue, the answer to the 47% respondent is that sustainability is already a critical issue to them right now. To over quarter of remaining respondent arguing that sustainability will be an issue to them in short time, basically in 2 years’ time. As regards to whether or not sustainable buildings would cost more and what it's like to be the additional cost, according to their report Lassele (2008) said that occupiers are pragmatic in respect of the additional cost incurred by owners and developer in designing, delivering and certifying a building to BREEAM or LEED standards. Their survey report further expressed that 70% of North American respondent assumed that sustainable building will cost up to 10% more than the traditional building, a few percentage according to their report suggested that the cost for delivering a green building might be in excess of 10%, 11% of the total respondents maintained that sustainable building might actually cost less or more than conventional product. But whatever the case of how much it cost, occupiers showed a huge interest in sustainable property acquisition globally, evidence of which is shown in the report of this survey where two-third of respondent from North America, Asia Pacific, Australasia and EMEA are willing to pay a premium for sustainable buildings. 77% of occupiers who responded from North America are willing to pay a premium of 1-10%, a small percentage from this region are willing to pay a bit more in excess of 10%.Due to the market scarcity of sustainable property in Pacific Asia, 16 % of respondent from this region are even willing to pay double digit premium.( Lassele 2008 )

NEEDS FOR SUSTAINABLE BUILDING

Posted on 6 February, 2016 at 8:45 Comments comments (0)

 Our way of life is killing us. Our buildings consume over 40% of our energy and resources and their use represents 70% of our total consumption (Rabin 2005). He further stressed that the environmental damage caused in the last hundred years is a direct result from how our buildings are built. Architects, designers, and all building professionals are in a position to affect great change on our environment, more so, than any other group, since our buildings are responsible for most of the damage. “Green building"(also known as "sustainable," "ecological," and "eco-designed") is a way of looking at buildings in terms of reducing energy use, conserving water, improving indoor air quality, and reducing dependence on our natural resources. Although the basic concepts for green building have been around for decades, it has only been in the last few years that we have seen this explosive growth in the greening of the construction industry'' (Rabin 2005). Buildings account for one-sixth of the world's fresh water withdrawals, one-quarter of its wood harvest, and two-fifths of its material and energy flows. (Roodman,& Lenssen,1995).Therefore it's the duty of a reasonable property industry to balance environmental, social and economic issues to ensure a viable and valuable industry for future generations. DEFINITION OF A SUISTAINABLE PROPERTY. There are many definitions of sustainable property that exist, but none is entirely satisfactory. Sustainable buildings may be equated to ‘green buildings’. For example Kats (2003) regards to them as synonymous and as buildings that “use key resources like energy, water, materials and land more efficiently than buildings that are just built to code.” This according to Sayce and Ellison (2004) implies an environmental interpretation of sustainability; implicit within Kats’ definition is that sustainability is a moving goal with ‘green’ or sustainable being reserved for those that are built ‘beyond compliance natural light and indoor air quality. Additionally United Nations World Commission on Environment and Development 1987 gives the definition of a sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Green buildings, (according to Governor’s Green Government Council) are designed, constructed and operated to achieve sustainability, water efficiency, energy, resources and indoor environment quality goals A green building is one whose construction and lifetime of operation assure the healthiest possible environment while representing the most efficient and least disruptive use of land, water, energy and resources.

Sustainability has not only been described by many research as an investment for the future but sustainable property can as well contribute to the wellbeing of inhabitants, according to Wittneben,(2014), Real Estate is responsible for the majority of Europe’s carbon emissions. He further stated that the real estate industry will be at the forefront of any reduction in carbon and other sustainability improvements. Wittneben (2014).''With most of us spending more than 90% of our time indoors, green building is the healthy, common sense choice for a better life. In traditional construction, the quality of our indoor environment is often far more polluted than outdoor one due to the building materials, inadequate lighting, and a variety of other variables''. (Rabin 2005) Another need for sustainability in real estate is the change in the lease pattern, in a survey carried out in UK Sayce and Ellison (2004) reported that the change in the lease pattern or rather the relationship change in landlord and tenants over time calls for sustainability in property sector. In the report Sayce and Ellison (2004), Lawrence (2005) stated that the standard commercial lease has long been constructed to reduce risk for the landlord. Two particular provision according to them, combined with lease length have been important; First the landlord usually placed liability on tenants on Repairs (including structural repairs and any upgrade required by law); this on the side of the landlord will protect him or her on any deficiency in the building during the lease. Secondly according to their survey report, the regular upward on rent review as a clause which ensures that owners are protected against the fall in the value of the building during lease and can only be discovered at the end of the lease that the property value have depreciated because of its failure to meet the requirement of the new tenant under legislation. DRIVERS OF SUSTAINABLE PROPERTY Legislation: The treat of legislation according to Sarah, S., Louise, E., & Philip, P., (2005), in a survey conducted across UK has been described as the first driver of sustainability in property sector, in the report summary, treat by legislators in various countries (UK for instance) has been observed to be the key driver in changing attitude of investors to possibly understand the financial worth implication of sustainability agenda. Furthermore, the last decade has seen substantial shift in attitudes towards sustainability, not only has sustainable development gained more attention within political debate between national and international level but has also become an important part of co-operate agenda in development economics. (Sarah, S., Louise, E., & Philip, P., (2005)). ENERGY EFFICIENCY: Energy efficiency is another driver for sustainability in property sector, because the ability for a building to perform or rather its efficiency is limited to how the building is designed, engineered constructed, operated and maintained. In order to achieve greater energy efficiency in a building depends on so many factors which include the building envelop, system types, energy end use, e. plugs loads and the operation of the building with regards to maintenance practices. (IFMA 2010). In their report of survey in 2010, IFMA foundation established that simple strategies to reduce heating and cooling loads include appropriate insulation, optimizing window glazing area, minimizing the filtration of air outside and the use of opaque roofing materials. Depending on how much daylight penetrates through the window into the interior space, the report mentioned that using common design features will give room for the enhancement of natural daylight into the building through the use of skylight, light shelves tubular day lighting and other means of day light harvesting will not only sustain a building but will also reduce the cost of energy consumption. (IMFA 2010) Similarly, in comparison IMFA report in 2010 on energy efficiency of a building has assumed that the energy cost of a building can be driven by so many factors among which are: Geographical, Climate and building type location. Even though energy cost has been argued by many professionals to the most controlled able expenses of any property unlike other expenses like taxes and insurance but if sustainability in this sector find its way globally we would not only pay less on energy consumption we might have a lot energy saved for the generations to come. For instance CEBECS (2003) in their energy saving survey arrived at the consumption of energy is about $1.09 per sq. ft. for all US building, $11.73 per sq/m for office building, various survey in US on energy saving assumed prices of energy has increased over the last 7years. CIOCHETI & McGowan (2009) rated the average commercial energy cost to have increased by 25% since 2000.Hence it's clear that the energy efficiency in a building is a pressing issue globally which according to IMFA (2010) report confirmed that building and industry energy consumption is growing even more intense and there is a call for sustainability in this regards OCCUPIER: The agitation of occupiers on sustainable homes cannot be overlooked when talking about drivers of sustainability in real estate. Occupiers according to Wittneben (2014) in a survey where over 100 stakeholder in real estate investment participated Emphasized that as liquidity improve on both the investors and occupier market a trend toward sustainability is seeing,. For occupiers as long as energy costs are very small fraction of rental value, they are not likely to be a crucial decision in their selection. See,Y., & TU (2011) in their survey report on Singapore property market have seen occupiers willingness to pay more on sustainable building once delivered and lived in, since they can verify the ''green'' claims by checking the electricity bills which implies that most of the occupiers in Asia, (or in Singapore precisely) are willing to pay for sustainable building after physical delivery and testing of the unit, so on the part of the investor it might likely to have a green lease with conditions if possible. The stand of occupiers would be discussed further in the circle of blame.

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Posted on 6 February, 2016 at 8:45 Comments comments (0)

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