Many real estate investors often time out of ignorance work against government’s inevitable burdensome real estate development bureaucracy, forgetting that government’s partnership in real estate development can not be downplayed and without mincing words government’s partnership is very explicit not only in real estate but also in all our daily activities, business and personal life.
Lest I forget Happy Independence Day to Nigerians and before we dive into this discussion, I would love to find out if everyone had a wonderful and memorable independence day celebration on the 1st of October, I say to you Happy 57 years anniversary and to those who may not know, Nigerians celebrate their independence day on 1st of October every year.
Without wasting any more of your time, let me give you an insight into this topic is all about to help you understand where am coming from and perhaps where am heading to.
Sometimes, about six months ago I supervised a construction work somewhere in Ikotun, it was a building project to be precise, it was an uncompleted project of a storey building with occupiers on the ground floor. I surmise the project was stopped due to lack of funds and the investor lives in London.
My job was to complete the project and while still on the project with men on site, I got a call from one of the guys on site that some people brought a stop work order notice which they pasted on the gate of the construction site and they requested that I see them at their office, the stop work order notice was from the Building Structure Control And Testing Department.
As I have said earlier, the initial building plan of the building is a storey, which I showed them in their office but unfortunately I was told that regardless of the plan I have with me, if a building project is stopped midway especially if left for two years as in this case before anyone could commence any work on it, the building must undergo a series of building and structural test to ascertain if it is strong enough to take another floor even though it was part of the initial building plan and a similar test was conducted before the developing the main structure.
I was nonplussed when the news of another set of government regulatory body from the local government council got to me, the guys on site said when those guys came in and saw them working on site they threatened to stop the work. They introduced themselves as officers from the local council and they would love to see the building permit for the project and also demanded for the permit or approval. According to the information I got they almost stopped and obstructed the building project until I eventually showed them when I showed up on site.
Apparently going by these experiences it is necessary and very important for investors and developers to not only make their building project official by getting a imprimatur for their project but also endeavour to get the support of the local community and other necessary approval from the local council as well as have a building structural test report to prevent and avoid men exploitation and unnecessary obstruction of work from these government agency or local authority.
This best explicates why this post is important to help investors and developers particularly those aspiring to take up real estate developing as their full time career. I want to help you understand the reason why many fail in real estate development by showing you some of the unnecessary and unexpected expenses that somehow increase the cost of real estate development which could as well be prevented if you are more careful, cautious and be prepared for some of these inconveniences, pit-falls and lapses some of which are inevitable and we must learn how to deal with them to avoid being disconcerted.
If you are financing your real estate development project through a mortgage loan facility by a mortgagee, it will be wise, sensible and appropriate to show considerable understanding of the regulation constraints to know what can actually be lawfully built on the proposed land.
In addition to that, as an investor or a developer you must also understand how you intend to successfully achieve the building project and to do this you must have indepth knowledge of what the project entails as well as have a due diligence performed.
For these reasons, the need to have a survey done in order to equip yourself with the required information of the real property you intend to build on. This will help you avoid a mismatch in whatever is drawn as the building plan and the actual available land for construction.
Many times when a survey is ignored, the building plan often time may not be able to seat on the land which may requires unwanted and unexpected adjustment or reduction in real the size of the building and the apartment units which could have unpleasant huge and negative effect on your estimated income and projected profit margin and no mortgagee would be delighted with this.
Another very important aspect of real estate development I would love to share particularly with the newbies who desire a full time career in real estate development is that seasoned and experience investors and developers never disregard construction codes and regulation standards and they are always on the look out for new regulation, law and policies that could have negative impact on their investment plans.
The quality of understanding of real estate development displayed by some of these expects and how they deal with it at a very serious level makes them prolific in the field. Experience investors or real estate developers always guide against any form of waste and they take it upon themselves seek and check for the building or construction codes, laws and regulations to ensure none of these laws are violated not only to prevent or eliminate unnecessary cost and wastage but also to save time and ensure smooth and hitch free construction or building project.
In an organized set up, In a develop countries of the world, the communities have the power to determine the type of construction or building project that would be constructed in their locality but the case is not the same here because the government has all the power to itself and anyone can erect anything as long as they have an approval from the government.
Hence as an ideal investor or developer who truly desire to be successful in real estate development business, you must be aware, knowledgeable and understand some and if not all of the inevitable government and community constraints and guidelines you must comply with and adhere to.
It might interest you to know that any forms of violation of these construction and building codes, rules, laws, regulation, permit or approval will not only increase your project budget and waste your time but also obstruct the flow of your construction work and you may as well be hammered with a heavy fine and civil penalty which will definitely affect your capital outlay.
Real estate developers must find a way to get attuned to the frustrating and burdensome land allocation and registration bureaucratic process whenever planning a real estate development project to help you save a lot of time and effort as well as eliminate unnecessary cost and wastage.
Finally, do your best to seek and find out the time required for building plan approval and permit to be processed, have great working relationship with your architect to ensure that your building plan meets the acceptable requirements with flawless standards and exact precision in order to guide against any form of rejection which could further delay the execution of the plan because the more time it takes the more loss you incur.
Let’s call it a day here and till you hear from me again next time, remember that creativity is complex and complicated but bears forth simplicity and flexibility when fully understood!
I wish you success in your real estate development adventures and your days of purple-patch moments awaits you!
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