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15 Sep

I WANT TO SELL…because of “DELAY” documentation

INTRODUCTION

Despite all efforts from our TEAM ( License Surveyor, Lawyer and Broker), a customer for whom we facilitated his property buying in the Peninsular of Freetown, Sierra Leone in April 2021, HIS document has not been signed . He has completed all necessary preparation for construction, including architectural drawing and fencing, but he is sceptical about whether he should go ahead with construction or not. As a diasporan, he has been frustrated by the delay and, therefore. WANTS TO SELL BACK THE LAND… BECAUSE OF DELAY IN THE DOCUMENTATION.

THE FACT

He is not alone in this, and we know thousands of Sierra Leoneans at home and abroad are going through the same experience. We are aware as well that other nationalities have been disgruntled over this imprudent accentuated bureaucracy created in the Ministry of Land which is affecting a host of industries in the country chiefly Construction and real estate.

In the formal sector of the economy, construction and real estate employed the largest population. Architects, engineers, builders, carpenters, electricians, plumbers, and interior decorators belong to the construction industry. Therefore, eventualities like these have not only widened the unemployment rate but also, in no small way, bear the greatest effect on the current economic suffering of the significant number of Sierra Leonean. For instance, hundreds of construction works are put on a hold because of the reason stated above (land document not completed yet. Either survey plan or building permit). Property owners, Lawyers, property valuers, real estate brokers and agents are among those that are hard hit. In fact, even the National Revenue Authority (NRA) shortfall of capital gain tax due to the decline in real estate transactions.

In India, the National Buildings Organisation estimates that a US$1 million investment in building construction at 1980-1 wage rates generated 600 person-years of on-site employment (400 unskilled, 200 skilled) and 1,000 person-years of indirect employment in the building materials industry and other support sectors (Tipple, 1994, p.598-9). Based on these results, it is plausible to believe that the ministry’s actions to introduce bureaucratic, archaic, non-innovative and imprudent land registration procedures have caused more than 5,000 unemployed each year, and contributed to a 12% decline in household income.

MACRO AND MICRO ECONOMIC FACTORS

Prices of Land appreciate with time. Over the past two years, we have experienced an unprecedented anomaly in the Ministry of Land. This situation has affected the economic forces of demand and supply of land and houses in Sierra Leone.

While the country was still dreading recovering from the twin effects of Ebola and plummeting economic growth caused by the fall in Iron ore prices, there was a change of administration. These activities scare most investors away from especially massive property developers. Three years down the line, Covide 19 emerged and ravaged the economy. Currently, we are dealing with something even bigger: the shock of Global hyperinflation, triggered by developments in Europe (Russia and Ukraine War) and spreading far and wide. Its effect on the developing country is three times more devastating.

THE CLAMOURS

We know you Love “Your mama Salone”, “Your sweet Salone”, “Motherland”.

Firstly we are sorry, Your SUCCESSIVE ADMINISTRATIONS is unimaginably slow. They are not ready for growth and economic advancement. They trivialise the importance of the housing sector to the economy, they are not aware of the contribution of real estate to the economic prosperity of the nation, and if they do, are not serious about taking corrective actions. They are not precious to encourage YOU DIASPORAN to come to invest in this country. They are not passionate about stimulating processes and streamlining procedures to encourage investors into a massive affordable housing sector. They are focused on formal developers like TAFF, Remimanuel Gray and others who are aware of these problems and are just not ready to come. They are unaware of what to do, how and why and when. They are not serious about their plans. They do not recognise your contribution and are unserious about promoting the private and informal sectors. Last but not least, they are not listening to your CRIES.

CONCLUSION

So, I advise every property owner to hold on sale or buy more properties. Any economic improvement will push demand and increase prices. In that case, prices will be 2 or 3 times higher than current prices. For true, documentation has been slow, but it is for the short term. A change of administration or policy in the Ministry can turn things around almost drastically. Therefore, you must really be convinced to sell for some other greater purpose than just the derailed or snail pace in the documentation process. I personally have a total of six documents pending. Different people have informed me of nine documents.

THE BOTTOM LINES

If you still think you should sell, contact Global Salone for advice on pricing or a tailored guide concerning your property. We help property buyers and Sellers with real estate decisions. We guide them to sell or buy their desired property in stress-free transactions.

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