Tightened Commercial Lending Guidelines Still Remains, According to Recent Federal Reserve Survey

A good number of banks continue to report “having tightened standards” on commercial real state loans, according to an April, 2010 Federal Reserve Board survey of 53 domestic banks. But the number of U.S. banks reporting stricter lending standards has dropped since the last survey was conducted in January, 2010. The Federal Reserve survey also asked banks if commercial loan extensions were in use. “Sizable fractions of both domestic and foreign respondents reported having increased their use of CRE loan extensions over the previous six months”, according to the Federal Reserve board’s website.As a wave of commercial mortgages become due, many borrowers will not be able to refinance because of tightened underwriting guidelines. Reports also indicate an increase of delinquent commercial mortgage loans. On a good note, the survey said there was an increase in the use of extensions by banks. Banks may approve extending the reset period or maturity date of the loan as part of the commercial loan modification.During the early 2000′s, billions of dollars worth of commercial mortgages were originated with 5, 7 or 10 year reset periods. After the reset period ends, the total loan amount in the form of a balloon payment is due. Lenders added the balloon payment feature to limit their risk exposure. Problem: almost half of all commercial real estate properties are underwater, meaning that the property value is less than the mortgage balance. Along with stricter lending standards, this is the reason why many commercial property owners can’t refinance.As part of the commercial loan workout process, commercial loan modifications can increase, or in some cases eliminate the maturity date. Commercial loan workouts are encouraged by federal regulators to help commercial borrowers avoid foreclosure. This new policy will help banks who were hesitant in the pass to provide commercial loan workouts to proactively offer solutions to distressed commercial property owners. FDIC Chairperson Bair said the Prudent Commercial Real Estate Workouts policy “emphasizes that restructured loans will not be subject to adverse classification by examiners solely because the value of the underlying collateral has fallen. In fact, institutions are encouraged to implement prudent, loan workouts based on an updated picture of the borrower’s financial condition.”These new guidelines are designed to help banks and borrowers alike, due to the present state of the economy. “Solid loan workouts that are based on the documented financial capacity of the borrower and the long-term prospects of the underlying project” Bair said.Key to a successful commercial loan workout is the borrower’s ability to repay the restructured loan or workout plan. If banks can’t document this, then the commercial loan workout is a “no-go”. If a commercial loan workout is denied, other alternatives may exist for borrowers to avoid foreclosure.A “short sale” allows the borrower to sale their commercial property for less than the actual mortgage balance. But a financial hardship must be documented. Another alternative: “Deed in lieu of foreclosure”. A deed in lieu of foreclosure grants the property owner the right to convey their commercial real estate to the bank to avoid foreclosure. But it would be wise to consult with a legal and/or tax advisor before considering these options, due to possible tax consequences.

Posted in Uncategorized | Comments Off

How to Manage Your Investment Holdings

The uncertain condition of today’s economy is not encouraging investors. This lowered investment trend can be traced back to the past 5 years where investments have been slow with subscriptions to how to manage your investment holdings magazines taking a dip. Many investors are uneasy over investing their money into a volatile market as stocks have been plummeting in value in recent years, with small rebounds here and there, now and then. This does not give investors enough confidence although there are many investing associations that offer courses or tips on how to manage your investment holdings.Good Monitoring of Investment
It is crucial to monitor your investments especially in this time of market uncertainty or volatility. Choosing the best investments is no guarantee of positive returns, much less huge returns, if you are not tracking the movements of your portfolio. As in any investment, there will be profits and losses; you can waste a lot of time and your hard earned money if you do not have good tracking habits or strategies such as proper record keeping. It is essential for any serious investor to review their portfolio’s performance when you are serious about how to manage your investment holdings for good returns.There may be taxes that are incurred, retirement computations which may lead you to make further decisions on your portfolio or opportunities that come by your way to grow your wealth. There are now many online resources for your picking to assist you on how to manage your investment holdings by keeping careful records on every investment you make, be it stock, bond, mutual fund or security. Once the easy setup is done, you will only need to commit to a weekly or bi-weekly check up on the performance of your portfolio. This way, you will not be taken by surprise on any adverse news as you monitor the organizational news of your portfolio.Online Investment Services
Online investment tracking services will update your portfolio automatically to reflect any price changes on a daily basis with a re-computation of your assets. They also assist in comparisons of your investments to your targets and the expected returns of your portfolio. These online investment services also alert the investor on potential purchases to add on to your portfolio. They may even have tips on how to manage your investment holdings that will benefit you.Self-directed investing
This is for those who want to manage their own portfolio; those of you who might be retirees and are keen on how to manage your investment holdings can consider monitoring your own investments with a sufficient bit of basic understanding of the various investment types available for your own consideration. You will need to be familiar with tax consequences as well as investment earnings and related costs with any investment you plan to undertake.You will need to be computer savvy if you are engaging technology in your own monitoring of your portfolio as well as be comfortable with the investment terms and conditions.Self-directed investment requires online accounts monitoring, evaluation and understanding before an investment transaction can be performed. There may be a substantial online research required to confirm or refute financial assumptions.Other factors
There is still a need to engage an investment company or professional broker to perform some of your trades or investments. An online broker may charge certain fees for his services. You should check out the reputation and performance of online brokers first before engaging their services.When you get going on how to manage your investment holdings, you may need to consider it as a long term goal so that you are able to pace your time and effort on the portfolio that you are going to set up. A good investment plan is usually for the long term to enjoy its good returns. Discipline and patience are two virtues that are required when you want to manage your own investments as most stocks do not bring in huge returns in the short run. It’s a great commitment to those stocks which you think will fare well in the long run.

Posted in Uncategorized | Comments Off

Advanced Thinking Concepts for Investing in a Property Management Firm in Uganda

As the Ugandan economy continues developing, the property market will grow. Many of the property sector investors however will probably not have time to manage the properties themselves on a day to day basis. They will increasingly rely on property management firms.Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:THE CONS1. Legal hurdles. You should be aware that in Uganda, owing to the poor land tenure system, combined with administrative inefficiencies and corruption, property purchase and construction is often fraught with legal difficulties. It is not uncommon for individuals to obtain illegal planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently rectifying this irregularity has often resulted in long drawn out legal processes and the owner and thus the property manager often lose revenues during the non occupancy of the disputed property.2. Reputation.Property management firms like any other businesses need to exhibit a high degree of integrity for potential clients to handover the properties. In Uganda there have been some high-profile court cases involving property managers, including one of a leading property management firm whose managing director conned a potential purchaser of advance monies paid. There was a significant reputation loss. If you are considering investing in this sector, you should therefore ensure you maintain the high standards of professional ethics such as separating client and office monies as well as maintaining good accounting records, otherwise your reputation can easily be dented.3. The property market bubble.Whilst the global credit crisis continues depressing property values in places such as the USA and the UK, In Uganda this is not particularly being felt for a myriad of reasons. In the commercial sector, malls and shopping centres continue to spring up in the capital city Kampala and its suburbs to cater for the growing middle class and increasing population as a result of rural- urban migration which is currently estimated at 3%-5% per annum.In the residential sector owing to a general shortage of housing there is always demand for property and as such the property values continue to rise. The shortage of housing is primarily because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant population growth not matched by construction and thus causing a shortage of housing, particularly for the low and middle level income earners.The main risk of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.4. CompetitionThe competition for property management in this sector is as follows:At the top end of the market are international property management firm affiliates like Knight Frank. In addition there are ISO certified companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.At the lower end of the market are property brokers who also double as property managers for their clients. These typically cater for low-income earners’ housing.In my model, I advocate that the property management investor will need to develop their niche as follows:1) A firm that is an affiliate or franchise holder of an international property management firm. In Uganda, as far as I know, international property management firms like CBRE and Colliers have no local representation except for Knight Frank. There is therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms. This will give them instant brand recognition and the perceived quality and reputation already associated with the international firms. In addition they will benefit from the referrals if clients of the international firm seek a local representative in Uganda. I can expect that this affiliation has contributed to the success of Knight Frank Uganda.2) A firm that has some brokers on its payroll. Brokers in Uganda tend to act independent of any firm, are semi illiterate and lack sufficient working capital to deal with potential clients.If the firm therefore guarantees them a daily allowance say of shs. 10,000 to cater for meals, transport and communication for their activities, they are likely to refer future business to the firm, particularly if they are unable to handle it themselves.THE PROSExcellent return on capital In my model I expect that the investment will be returned in about 6 months. The reason for this is manifold:a) The property manager’s advertising will emphasise property management as their core business. This is such that the firm can develop inside knowledge of the sector as well as establish itself as a reputable leader in the sector. When they have developed a good reputation, clients can then entrust them with property sales, which tend to be more lucrative than property management.The property management side is therefore in business terms called the “loss leader”.b) A significant part of the marketing budget will go to the brokers rather than traditional avenues of marketing like TV and newspaper advertisements. This is because the Ugandan real estate sector is highly informal and as such a significant portion of the illiterate/semi illiterate but wealthy persons will usually revert to the brokers who just like them are often illiterate/semi illiterate. It therefore becomes critical to have these brokers as a linkage to such clientele.In my model, I expect returns will be as below:Capital Investment(A): Shs 35, 149, 155Profit per year (B): Shs. 58,803,380Return on Investment/Capital (years to get capital back) (A/B): 0.6 yearsFINAL WORDThe basics you must get right before investing:1. Property management software. You must invest in good software to provide you with real-time client accounts and reporting. This will give the client the assurance as to your integrity. I cannot recommend a particular software but a Google search should yield one.2. Maintain a good contact data base. Property management requires liaison with several bodies including city council authorities, land authorities, utility suppliers, repairs and maintenance personnel, lawyers and brokers. I expect that a good property management software system will have a robust Database Management System at its heart. I will reiterate, include a good lawyer and accountant on this contact database.3. Become an affiliate of an international property management firm. If you cannot afford one with an international firm such as CBRE or Colliers then go for a locally reputable firm like APS.

Posted in Uncategorized | Comments Off

There is an excessive amount of traffic coming from your Region.

#EANF#

Posted in Uncategorized | Tagged , , , , , | Comments Off

There is an excessive amount of traffic coming from your Region.

#EANF#

Posted in Uncategorized | Tagged , , , , , | Comments Off

Advanced Thinking Concepts for Investing in a Property Management Firm in Uganda

As the Ugandan economy continues developing, the property market will grow. Many of the property sector investors however will probably not have time to manage the properties themselves on a day to day basis. They will increasingly rely on property management firms.Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:THE CONS1. Legal hurdles. You should be aware that in Uganda, owing to the poor land tenure system, combined with administrative inefficiencies and corruption, property purchase and construction is often fraught with legal difficulties. It is not uncommon for individuals to obtain illegal planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently rectifying this irregularity has often resulted in long drawn out legal processes and the owner and thus the property manager often lose revenues during the non occupancy of the disputed property.2. Reputation.Property management firms like any other businesses need to exhibit a high degree of integrity for potential clients to handover the properties. In Uganda there have been some high-profile court cases involving property managers, including one of a leading property management firm whose managing director conned a potential purchaser of advance monies paid. There was a significant reputation loss. If you are considering investing in this sector, you should therefore ensure you maintain the high standards of professional ethics such as separating client and office monies as well as maintaining good accounting records, otherwise your reputation can easily be dented.3. The property market bubble.Whilst the global credit crisis continues depressing property values in places such as the USA and the UK, In Uganda this is not particularly being felt for a myriad of reasons. In the commercial sector, malls and shopping centres continue to spring up in the capital city Kampala and its suburbs to cater for the growing middle class and increasing population as a result of rural- urban migration which is currently estimated at 3%-5% per annum.In the residential sector owing to a general shortage of housing there is always demand for property and as such the property values continue to rise. The shortage of housing is primarily because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant population growth not matched by construction and thus causing a shortage of housing, particularly for the low and middle level income earners.The main risk of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.4. CompetitionThe competition for property management in this sector is as follows:At the top end of the market are international property management firm affiliates like Knight Frank. In addition there are ISO certified companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.At the lower end of the market are property brokers who also double as property managers for their clients. These typically cater for low-income earners’ housing.In my model, I advocate that the property management investor will need to develop their niche as follows:1) A firm that is an affiliate or franchise holder of an international property management firm. In Uganda, as far as I know, international property management firms like CBRE and Colliers have no local representation except for Knight Frank. There is therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms. This will give them instant brand recognition and the perceived quality and reputation already associated with the international firms. In addition they will benefit from the referrals if clients of the international firm seek a local representative in Uganda. I can expect that this affiliation has contributed to the success of Knight Frank Uganda.2) A firm that has some brokers on its payroll. Brokers in Uganda tend to act independent of any firm, are semi illiterate and lack sufficient working capital to deal with potential clients.If the firm therefore guarantees them a daily allowance say of shs. 10,000 to cater for meals, transport and communication for their activities, they are likely to refer future business to the firm, particularly if they are unable to handle it themselves.THE PROSExcellent return on capital In my model I expect that the investment will be returned in about 6 months. The reason for this is manifold:a) The property manager’s advertising will emphasise property management as their core business. This is such that the firm can develop inside knowledge of the sector as well as establish itself as a reputable leader in the sector. When they have developed a good reputation, clients can then entrust them with property sales, which tend to be more lucrative than property management.The property management side is therefore in business terms called the “loss leader”.b) A significant part of the marketing budget will go to the brokers rather than traditional avenues of marketing like TV and newspaper advertisements. This is because the Ugandan real estate sector is highly informal and as such a significant portion of the illiterate/semi illiterate but wealthy persons will usually revert to the brokers who just like them are often illiterate/semi illiterate. It therefore becomes critical to have these brokers as a linkage to such clientele.In my model, I expect returns will be as below:Capital Investment(A): Shs 35, 149, 155Profit per year (B): Shs. 58,803,380Return on Investment/Capital (years to get capital back) (A/B): 0.6 yearsFINAL WORDThe basics you must get right before investing:1. Property management software. You must invest in good software to provide you with real-time client accounts and reporting. This will give the client the assurance as to your integrity. I cannot recommend a particular software but a Google search should yield one.2. Maintain a good contact data base. Property management requires liaison with several bodies including city council authorities, land authorities, utility suppliers, repairs and maintenance personnel, lawyers and brokers. I expect that a good property management software system will have a robust Database Management System at its heart. I will reiterate, include a good lawyer and accountant on this contact database.3. Become an affiliate of an international property management firm. If you cannot afford one with an international firm such as CBRE or Colliers then go for a locally reputable firm like APS.

Posted in Uncategorized | Tagged , , , , , | Comments Off

Advanced Thinking Concepts for Investing in a Property Management Firm in Uganda

As the Ugandan economy continues developing, the property market will grow. Many of the property sector investors however will probably not have time to manage the properties themselves on a day to day basis. They will increasingly rely on property management firms.Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:THE CONS1. Legal hurdles. You should be aware that in Uganda, owing to the poor land tenure system, combined with administrative inefficiencies and corruption, property purchase and construction is often fraught with legal difficulties. It is not uncommon for individuals to obtain illegal planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently rectifying this irregularity has often resulted in long drawn out legal processes and the owner and thus the property manager often lose revenues during the non occupancy of the disputed property.2. Reputation.Property management firms like any other businesses need to exhibit a high degree of integrity for potential clients to handover the properties. In Uganda there have been some high-profile court cases involving property managers, including one of a leading property management firm whose managing director conned a potential purchaser of advance monies paid. There was a significant reputation loss. If you are considering investing in this sector, you should therefore ensure you maintain the high standards of professional ethics such as separating client and office monies as well as maintaining good accounting records, otherwise your reputation can easily be dented.3. The property market bubble.Whilst the global credit crisis continues depressing property values in places such as the USA and the UK, In Uganda this is not particularly being felt for a myriad of reasons. In the commercial sector, malls and shopping centres continue to spring up in the capital city Kampala and its suburbs to cater for the growing middle class and increasing population as a result of rural- urban migration which is currently estimated at 3%-5% per annum.In the residential sector owing to a general shortage of housing there is always demand for property and as such the property values continue to rise. The shortage of housing is primarily because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant population growth not matched by construction and thus causing a shortage of housing, particularly for the low and middle level income earners.The main risk of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.4. CompetitionThe competition for property management in this sector is as follows:At the top end of the market are international property management firm affiliates like Knight Frank. In addition there are ISO certified companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.At the lower end of the market are property brokers who also double as property managers for their clients. These typically cater for low-income earners’ housing.In my model, I advocate that the property management investor will need to develop their niche as follows:1) A firm that is an affiliate or franchise holder of an international property management firm. In Uganda, as far as I know, international property management firms like CBRE and Colliers have no local representation except for Knight Frank. There is therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms. This will give them instant brand recognition and the perceived quality and reputation already associated with the international firms. In addition they will benefit from the referrals if clients of the international firm seek a local representative in Uganda. I can expect that this affiliation has contributed to the success of Knight Frank Uganda.2) A firm that has some brokers on its payroll. Brokers in Uganda tend to act independent of any firm, are semi illiterate and lack sufficient working capital to deal with potential clients.If the firm therefore guarantees them a daily allowance say of shs. 10,000 to cater for meals, transport and communication for their activities, they are likely to refer future business to the firm, particularly if they are unable to handle it themselves.THE PROSExcellent return on capital In my model I expect that the investment will be returned in about 6 months. The reason for this is manifold:a) The property manager’s advertising will emphasise property management as their core business. This is such that the firm can develop inside knowledge of the sector as well as establish itself as a reputable leader in the sector. When they have developed a good reputation, clients can then entrust them with property sales, which tend to be more lucrative than property management.The property management side is therefore in business terms called the “loss leader”.b) A significant part of the marketing budget will go to the brokers rather than traditional avenues of marketing like TV and newspaper advertisements. This is because the Ugandan real estate sector is highly informal and as such a significant portion of the illiterate/semi illiterate but wealthy persons will usually revert to the brokers who just like them are often illiterate/semi illiterate. It therefore becomes critical to have these brokers as a linkage to such clientele.In my model, I expect returns will be as below:Capital Investment(A): Shs 35, 149, 155Profit per year (B): Shs. 58,803,380Return on Investment/Capital (years to get capital back) (A/B): 0.6 yearsFINAL WORDThe basics you must get right before investing:1. Property management software. You must invest in good software to provide you with real-time client accounts and reporting. This will give the client the assurance as to your integrity. I cannot recommend a particular software but a Google search should yield one.2. Maintain a good contact data base. Property management requires liaison with several bodies including city council authorities, land authorities, utility suppliers, repairs and maintenance personnel, lawyers and brokers. I expect that a good property management software system will have a robust Database Management System at its heart. I will reiterate, include a good lawyer and accountant on this contact database.3. Become an affiliate of an international property management firm. If you cannot afford one with an international firm such as CBRE or Colliers then go for a locally reputable firm like APS.

Posted in Uncategorized | Comments Off

Advanced Thinking Concepts for Investing in a Property Management Firm in Uganda

As the Ugandan economy continues developing, the property market will grow. Many of the property sector investors however will probably not have time to manage the properties themselves on a day to day basis. They will increasingly rely on property management firms.Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:THE CONS1. Legal hurdles. You should be aware that in Uganda, owing to the poor land tenure system, combined with administrative inefficiencies and corruption, property purchase and construction is often fraught with legal difficulties. It is not uncommon for individuals to obtain illegal planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently rectifying this irregularity has often resulted in long drawn out legal processes and the owner and thus the property manager often lose revenues during the non occupancy of the disputed property.2. Reputation.Property management firms like any other businesses need to exhibit a high degree of integrity for potential clients to handover the properties. In Uganda there have been some high-profile court cases involving property managers, including one of a leading property management firm whose managing director conned a potential purchaser of advance monies paid. There was a significant reputation loss. If you are considering investing in this sector, you should therefore ensure you maintain the high standards of professional ethics such as separating client and office monies as well as maintaining good accounting records, otherwise your reputation can easily be dented.3. The property market bubble.Whilst the global credit crisis continues depressing property values in places such as the USA and the UK, In Uganda this is not particularly being felt for a myriad of reasons. In the commercial sector, malls and shopping centres continue to spring up in the capital city Kampala and its suburbs to cater for the growing middle class and increasing population as a result of rural- urban migration which is currently estimated at 3%-5% per annum.In the residential sector owing to a general shortage of housing there is always demand for property and as such the property values continue to rise. The shortage of housing is primarily because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant population growth not matched by construction and thus causing a shortage of housing, particularly for the low and middle level income earners.The main risk of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.4. CompetitionThe competition for property management in this sector is as follows:At the top end of the market are international property management firm affiliates like Knight Frank. In addition there are ISO certified companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.At the lower end of the market are property brokers who also double as property managers for their clients. These typically cater for low-income earners’ housing.In my model, I advocate that the property management investor will need to develop their niche as follows:1) A firm that is an affiliate or franchise holder of an international property management firm. In Uganda, as far as I know, international property management firms like CBRE and Colliers have no local representation except for Knight Frank. There is therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms. This will give them instant brand recognition and the perceived quality and reputation already associated with the international firms. In addition they will benefit from the referrals if clients of the international firm seek a local representative in Uganda. I can expect that this affiliation has contributed to the success of Knight Frank Uganda.2) A firm that has some brokers on its payroll. Brokers in Uganda tend to act independent of any firm, are semi illiterate and lack sufficient working capital to deal with potential clients.If the firm therefore guarantees them a daily allowance say of shs. 10,000 to cater for meals, transport and communication for their activities, they are likely to refer future business to the firm, particularly if they are unable to handle it themselves.THE PROSExcellent return on capital In my model I expect that the investment will be returned in about 6 months. The reason for this is manifold:a) The property manager’s advertising will emphasise property management as their core business. This is such that the firm can develop inside knowledge of the sector as well as establish itself as a reputable leader in the sector. When they have developed a good reputation, clients can then entrust them with property sales, which tend to be more lucrative than property management.The property management side is therefore in business terms called the “loss leader”.b) A significant part of the marketing budget will go to the brokers rather than traditional avenues of marketing like TV and newspaper advertisements. This is because the Ugandan real estate sector is highly informal and as such a significant portion of the illiterate/semi illiterate but wealthy persons will usually revert to the brokers who just like them are often illiterate/semi illiterate. It therefore becomes critical to have these brokers as a linkage to such clientele.In my model, I expect returns will be as below:Capital Investment(A): Shs 35, 149, 155Profit per year (B): Shs. 58,803,380Return on Investment/Capital (years to get capital back) (A/B): 0.6 yearsFINAL WORDThe basics you must get right before investing:1. Property management software. You must invest in good software to provide you with real-time client accounts and reporting. This will give the client the assurance as to your integrity. I cannot recommend a particular software but a Google search should yield one.2. Maintain a good contact data base. Property management requires liaison with several bodies including city council authorities, land authorities, utility suppliers, repairs and maintenance personnel, lawyers and brokers. I expect that a good property management software system will have a robust Database Management System at its heart. I will reiterate, include a good lawyer and accountant on this contact database.3. Become an affiliate of an international property management firm. If you cannot afford one with an international firm such as CBRE or Colliers then go for a locally reputable firm like APS.

Posted in Uncategorized | Tagged , , , , , | Comments Off

Advanced Thinking Concepts for Investing in a Property Management Firm in Uganda

As the Ugandan economy continues developing, the property market will grow. Many of the property sector investors however will probably not have time to manage the properties themselves on a day to day basis. They will increasingly rely on property management firms.Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:THE CONS1. Legal hurdles. You should be aware that in Uganda, owing to the poor land tenure system, combined with administrative inefficiencies and corruption, property purchase and construction is often fraught with legal difficulties. It is not uncommon for individuals to obtain illegal planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently rectifying this irregularity has often resulted in long drawn out legal processes and the owner and thus the property manager often lose revenues during the non occupancy of the disputed property.2. Reputation.Property management firms like any other businesses need to exhibit a high degree of integrity for potential clients to handover the properties. In Uganda there have been some high-profile court cases involving property managers, including one of a leading property management firm whose managing director conned a potential purchaser of advance monies paid. There was a significant reputation loss. If you are considering investing in this sector, you should therefore ensure you maintain the high standards of professional ethics such as separating client and office monies as well as maintaining good accounting records, otherwise your reputation can easily be dented.3. The property market bubble.Whilst the global credit crisis continues depressing property values in places such as the USA and the UK, In Uganda this is not particularly being felt for a myriad of reasons. In the commercial sector, malls and shopping centres continue to spring up in the capital city Kampala and its suburbs to cater for the growing middle class and increasing population as a result of rural- urban migration which is currently estimated at 3%-5% per annum.In the residential sector owing to a general shortage of housing there is always demand for property and as such the property values continue to rise. The shortage of housing is primarily because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant population growth not matched by construction and thus causing a shortage of housing, particularly for the low and middle level income earners.The main risk of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.4. CompetitionThe competition for property management in this sector is as follows:At the top end of the market are international property management firm affiliates like Knight Frank. In addition there are ISO certified companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.At the lower end of the market are property brokers who also double as property managers for their clients. These typically cater for low-income earners’ housing.In my model, I advocate that the property management investor will need to develop their niche as follows:1) A firm that is an affiliate or franchise holder of an international property management firm. In Uganda, as far as I know, international property management firms like CBRE and Colliers have no local representation except for Knight Frank. There is therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms. This will give them instant brand recognition and the perceived quality and reputation already associated with the international firms. In addition they will benefit from the referrals if clients of the international firm seek a local representative in Uganda. I can expect that this affiliation has contributed to the success of Knight Frank Uganda.2) A firm that has some brokers on its payroll. Brokers in Uganda tend to act independent of any firm, are semi illiterate and lack sufficient working capital to deal with potential clients.If the firm therefore guarantees them a daily allowance say of shs. 10,000 to cater for meals, transport and communication for their activities, they are likely to refer future business to the firm, particularly if they are unable to handle it themselves.THE PROSExcellent return on capital In my model I expect that the investment will be returned in about 6 months. The reason for this is manifold:a) The property manager’s advertising will emphasise property management as their core business. This is such that the firm can develop inside knowledge of the sector as well as establish itself as a reputable leader in the sector. When they have developed a good reputation, clients can then entrust them with property sales, which tend to be more lucrative than property management.The property management side is therefore in business terms called the “loss leader”.b) A significant part of the marketing budget will go to the brokers rather than traditional avenues of marketing like TV and newspaper advertisements. This is because the Ugandan real estate sector is highly informal and as such a significant portion of the illiterate/semi illiterate but wealthy persons will usually revert to the brokers who just like them are often illiterate/semi illiterate. It therefore becomes critical to have these brokers as a linkage to such clientele.In my model, I expect returns will be as below:Capital Investment(A): Shs 35, 149, 155Profit per year (B): Shs. 58,803,380Return on Investment/Capital (years to get capital back) (A/B): 0.6 yearsFINAL WORDThe basics you must get right before investing:1. Property management software. You must invest in good software to provide you with real-time client accounts and reporting. This will give the client the assurance as to your integrity. I cannot recommend a particular software but a Google search should yield one.2. Maintain a good contact data base. Property management requires liaison with several bodies including city council authorities, land authorities, utility suppliers, repairs and maintenance personnel, lawyers and brokers. I expect that a good property management software system will have a robust Database Management System at its heart. I will reiterate, include a good lawyer and accountant on this contact database.3. Become an affiliate of an international property management firm. If you cannot afford one with an international firm such as CBRE or Colliers then go for a locally reputable firm like APS.

Posted in Uncategorized | Tagged , , , , , | Comments Off

Keep These 5 Rules in Mind for Successful Commercial Designing

Who doesn’t want an excellent commercial design? Excellent commercial design is important to maintain the reputation and brand image of the company. As it is said, the first impression is the last impression, a good impression always attracts potential customers. It’s obvious no one would ever love to walk in a congested environment with bad lighting.

Bad design and interiors deteriorate the productivity of the employees. It can be a confusing task when planning a commercial designing project for the first time, hiring expert Commercial Architects Melbourne can be the best option to know about the latest trends and perfect matching designs.

This blog is about some basic rules to consider for making the commercial project successful.
Keep structures versatile

When it comes to transforming any commercial space, focusing on convertibility and keeping office interior decor versatile can be the best option. It can be done by implementing a versatile structure to spaces such as cafeterias, offices, and many more. Everyone gives preference to comfort hence, focusing on spatial and versatile design will help to complete commercial designing projects in an optimal way.

Consider the latest technology implementations

Technology plays a supportive role to enhance the commercial designing project. Moving forward with the latest technology is important to execute any business smoothly because technologies make the work much easier and comfortable for the employee as well as organizations. Implementing centralized and decentralized digital control is much needed in any commercial design.

Keep office aesthetics updated

Good aesthetics and interiors impact the overall representation of the office and make the place functional and attractive. Hire a reputed designer for modern d├ęcor and furniture ideas. Hiring a designer reduces half of the project stress and helps to meet the contemporary fashion and latest trends. They can help to choose the perfect theme that blends well with the office decor, atmosphere, and colour.

Provide personalized space to prevent congestion

Majority of customer prefers personalized space such as different seating to seat comfortably and do the personal work. Personalized space is one of the crucial factors for customer-based service offices such as hotels and cafeterias to provide an ambient and comfortable place.

Always keep safety first

Safety is the central feature of every construction and designing project. Hence, it’s the high-priority factor to keep the aesthetic and functional safety at the working place. It can be compromised for interior decoration and design purposes but it’s not at all affordable to compromise for safety purposes.

Following the above useful ideas can easily help in the successful completion of a commercial designing project in a safe and pleasing way. In today’s, modern construction, reliability, and comfort is also an equally important factor.

Final words,

It’s important to hire the experienced Building designer Melbourne to make the commercial designing project worthy. Hope the above rules helped you to scale up your interior designing projects with a better outcome. Follow the above tips for any renovation or remodelling project and surely you will get award-winning and achieve a better office experience.

Posted in Uncategorized | Tagged , , , , , | Comments Off