03/04/2024
OSOGBO BOGUS PROPERTY VALUE. EFFECT OF GREED AND YAHOO.
by Sulaimon Agboola
Lemme state categorically that cost of construction alone doesn't determine the market value of property. It's one of the factors, not the only factor. While market value can slightly be higher than the cost in some locations, it can also be lower in some other locations. There are so many other factors like, demand, proximity to administrative area, social infrastructure, then macroeconomics. So it's not a one size fits all thing. Anyone sighting the high cost of building materials as a justification for hike in rental value have little or no understanding of value.
Another point to note is that Investment in property is majorly a long term investment. Although their are other ways with which you can earn from real estate in a short term. That's left for experts, not some random Osogbo civil servants that will steal some office imprests once in a while to pay Contributions and gather the contributions to buy land and build house in Ogo Oluwa.
We currently have a bogus property value in Òsogbo Property Market. The #450,000 for a room and parlour self-contained apartment is not a true value. It's influenced by greed and Yahoo. Academically, it's based on demand. Because the price would have fallen if there's no demand.
While at the Valuation school, we didn't dwell too much on demand as a major factor for proper value, as much as other factors were discussed.
The influx of politicians from Lagos in the late 2010 was the first major hit on Osogbo Property market. This, experts believe it's sustainable because politicians will always be there. As one tenure goes, another will replace them. That's what's sustaining Abuja Property Market. Every four years, new Reps and Senators will be elected and those ones will also want to be called Abuja Landlord.
Even Politicians in Òsogbo right now cannot afford rents in the urban areas of Osogbo. Governor Demola Adeleke's SSAs prefer to live in Ikirun, Ede Iwo, and other sub-urban areas in close proximity to Osogbo. Because we're all competing with Yahoo boiz and greedy House agents.
The boom Osogbo is experiencing lately is the influx of Yahoo boiz and their small chops. We're all seeing the effect of what we decided to keep shut on. The apartment that you checked and you're complaining the rent is to high, will be paid for by a 17 years old yahoo boy within the next two hours. By the time you call again to negotiate, the next you'll hear is 'Bros Ìyẹn tilọ, there's another one at Owode Ede but Ìyẹn kan wọn diẹ sha. Bedsides you have to pay another mobilisation before I can take you there".
This is actually the beginning. The worse will soon come. Osun with an average salary of #50,000 leads all other 35 states in food inflation. And we're still unlucky with leadership. We have a Governor that's only interested in Lagos Weekend enjoyment rather than governance. Once 1pm ticks on Thursday laidis, "CPS, is my bags ready, Dele is waiting for me in Lagos". We're in for very long thing. Osun has greater potential to replicate the Lagos's Ounjẹ Eko Project. But is our own Governor aware of anything?
Another deadly factor is the attitudes of the quacks we all call house agents. A house of #200,000 with a total package of #500,000. Break it down Bro, what's in the package. I don't blame the quacks that much. I blame the property owners and the entire society for their hostility to Professionals. We all want a quick turnover and we're getting the result. A professional Estate Surveyor and Valuer will conduct a thorough tenant screening before admitting a tenant. An Estate Surveyor is mostly concerned about the longevity of the house and continuity of rent. Never about the first rent. A quack agent is only concerned about his own fee from the total package, that's why they prefer yahoo boiz. But a Landlord that have sense should be interested in who his tenant is. If not for the law that's weak in this side of the world. Any property that house yahoo boiz supposed to be demolished and the landlord jailed.
We have a lot of solutions staring us in our faces. Whether you're a Landlord, prospective landlord or prospective tenants. Patronise only professionals. There are a number of Registered Estate Surveyors in Òsogbo. For a rent of #200,000, a professional Estate Surveyor will never charge more than 10% agency fee and 10% legal fee to make #240,000 total package. You can negotiate this as the rental value increases. The agency fee is his own earning for taking you around, conducting a background check, and documentation while the legal fee goes to legal perfection of your tenancy.
Together we can frown at the Yahoo based economy we have in Osun. When I used to work as an Estate Surveyor in Lagos. I had landlords that will call Police if they see any traces of Quacks around their house. Quackery and Yahoo complements each other. Without quack agents and unsuspecting and greedy landlords, yahoo boiz won't thrive like they're doing in Òsogbo. With less yahoo boiz, inflation will be kept at check.
My name is Sulaimon Agboola, I write from Ogo-Oluwa Osogbo.
