34 — Vanguard, MONDAY, AUGUST 18, 2014
Homes & Housing Finance Stories by YINKA KOLAWOLE
UK homeowners warned of mortgage rise
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he number of UK homes repossessed during the Spring fell, but households have been warned by lenders to prepare for rate rises. A total of 5,400 properties were repossessed in the second quarter of the year, the Council of Mortgage Lenders (CML) said. This was down 1,000 on the previous three months, and down by 2,200 on the same period a year ago. CML said that it would welcome Bank rate rises only in ‘baby steps’. “Rates will rise at some stage, of course, and borrowers should be planning for that now. We welcome the message from the Bank of England that, when it raises rates, it plans to do so in a series of ‘baby steps’, matched to a careful assessment of the ability of households to deal with higher borrowing costs. Any borrower anticipating payment problems should talk to their lender as soon as possible,” said Paul Smee, director general of the CML.
US mortgage rate declines
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verage long-term U.S. mortgage rates declined this week, approaching their lows for the year. Mortgage firm, Freddie Mac, said the nationwide average for a 30-year loan slipped to 4.12 percent from 4.14 percent last week. The average for a 15-year mortgage fell to 3.24 percent from 3.27 percent last week. Mortgage rates are below the levels of a year ago. They have fallen in recent weeks after climbing last summer when the Federal Reserve began talking about reducing the monthly bond purchases it was making to keep long-term borrowing rates low. Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.42 percent Wednesday, brushing its low for the year of 2.41 percent and down from 2.47 percent a week earlier. It fell to 2.38 percent in trading Thursday morning. At 4.12 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year. Rates have fallen even though the Fed has been trimming its monthly bond purchases, which are intended to keep long-term borrowing rates low. The purchases are set to end in October. C M Y K
with agency report
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agos State government has initiated moves to regulate estate agency fees in the state which it claims ranks highest when compared with other countries. To this end, a stakeholders’ meeting was recently convened at the instance of the Lagos State Real Estate Transaction D e p a r t m e n t (LASRETRAD) to deliberate on “Real Estate Agency Fees in Lagos”. In attendance were various associations of estate agents, legal practitioners and developers, among others, operating in the state. Issues discussed at the meeting included acceptable rates to be collected as agency commissions, the models to be adopted, based on best practices obtainable in other countries. The State’s AttorneyGeneral and Commissioner for Justice, Mr. Ade Ipaiye, in a paper titled: ‘Agency Fees and its Related Issues’, noted that agency fee is a contractual agreement which is subject to negotiation. Ipaiye who was represented by the Senior Special Adviser to the governor on Justice, Mr. Olanrewaju Akinsola, drew a comparison between Nigeria and other countries, noted that agency fees in Nigeria are the highest. According to him, agency fee in Ghana is five percent; in Kenya it is 1.25 percent and in South Africa, it ranges from four to eight percent.
Housing estate made affordable through mortgage
Lagos moves to regulate estate agency charges He further noted that agency fees in these countries are either paid by property owners or shared by owners and buyers/tenants whereas in Nigeria, estate agency fees range from 10 percent to as high as 75 percent. Also speaking at the event, Special Adviser to the Governor on Housing, Mr. Jimoh Ajao, said the state government is worried on the number of negative complaints received from the public on the activities of estate agents in the state. “Government has realised that estate agents are charging varying percentages as agency fees, some as ridiculous as 75 percent of rent for low-end properties,” he noted. According to him, the appropriate fees to be paid must be known; the true condition of the property
must be disclosed, according to article 3 (1-5) and 5 (i-3) of the primary duty to clients in the Code of Conduct of an estate agent. Ajao said LASRETRAD was established for five basic objectives: maintaining real estate market confidence; ensuring the protection and enhancement of the stability of Lagos State real estate market; securing certain level of protection for property seekers; making property transaction process extremely transparent; and total eradication of quackery in real estate industry in Lagos State. “As we roll out the approved bill board advertisement for properties in the state, we hope to create a uniform advertisement platform with the aim of identifying quack agents for necessary prosecution,” he added.
In his remark, Chief Operating Officer, Property Communications, Boye Ajayi, said the regulation of the sector is necessary to stop the chaotic situation where estate agents charge indiscriminately. “For someone to rent a room apartment, such a person must be economically handicapped. Why would an estate agent charge such a person huge amount as agency fee? It is unimaginable for an agent to charge agency fees of same amount as the rent. The government is only trying to sanitise the industry. By doing this, these nefarious activities will come to an end. There must be a regulated fee so that somebody who wants to buy or rent a house will know what he has to pay,” he stated.
Common mistakes in online property marketing T
he online property market is growing very rapidly. With millions of new property listings appearing online every day, it is an increasing struggle to make any particular property stand out amongst the crowd. By identifying common advertising mistakes and recognising what makes a strong, quick-to-sell listing, agents can ensure that their properties grab the attention of potential buyers and renters. Real estate portal, Lamudi has identified the following as the five most common mistakes made by real
estate agents in order to help improve listings and sell property faster. No or only a few photographs : Marketing property online means that the listing has to be visually appealing. Many real estate agents do not include photographs of the property in the listing. Make sure to make at least five highresolution pictures in different rooms of the house or apartment. Dimly lit rooms will not grab the attention of home buyers, neither will the one and only picture of the house. Bad language: Grammar plays an important role in
selling real estate, so make sure to double check spelling and sentence structure before listing the property. Property descriptions with no grammatical errors in the title statistically get more views. Descriptions including persuasive language such as: “In a Hurry to Sell” or “Motivated to Sell” deter potential buyers, as this leads the buyer to question why the agent wants to sell so fast. Vague neighbourhood descriptions : Listing all the high quality amenities that are nearby is important, however many real estate agents limit the description
of the surrounding area. A home buyer wants to know as many details as possible about future neighbourhood, such as if it welcomes pets or is cyclist-friendly. By including these details, listings are likely to get more attention from house-hunters. The same applies to neighbourhoods that have a low crime rate or those that foster a sense of community and are vibrant and diverse. Make sure to include all of a neighbourhood’s assets in the description of a property.