The benefits of a Serviced Estate far outweighs any disadvantage and I can’t even think of any real advantage of a non Estate property over a property in a Serviced estate.
The main attraction of a Serviced Estate is the infrastructures (Perimeter Fencing, Security(not Adamu gateman o), Interlocked Roads, Drainages, Landscaping and most importantly, Order and Organization. *As Better Soup na Money kill am*, all these cost money and that’s what Development Fee is for (to provide infrastructure).
The monetary benefit? A plot in Mayfair Gardens would sell for ₦20M while a non serviced plot same size and sharing fences with Mayfair may sell for ₦8M meanwhile your Development Fee isn’t even ₦12M.
Better value if you want to sell later. Not to talk of the comfort and pleasure of waking up by 2am to take a stroll in your neighborhood or even call a dear one in a different time zone and not risk being slapped and robbed of you phone.
Serviced Estates are simply an “Upgrade” in living style. Also, you would spend more if you are to individually provide the infrastructures your development fee and Service Charges cover (Interlocked Roads, Street Lights, Security etc).
Gate man alone is ₦25k monthly meanwhile in an estate like VGC you pay less than ₦30k monthly for service charge and it covers Armed Security better than your gate man, Sewage disposal, Sanitation, Facility Maintenance, play ground, Park, Football Field, Tennis, Club House etc…..
In Nigeria, we lack a maintenance culture and we like to wait for government for everything but there’s nothing wrong with paying money for better services. It’s because of the toll fees collected at Lekki Toll Gate and parts of it used for maintenance that’s why you’d never see pot holes on the road and they’d toll your car for free if it breaks down on the road. We know towing trucks aren’t cheap.
Trust me, facility maintenance isn’t very interestingly lucrative for most Development companies so they usually don’t mind stepping down and handing over to the Landlord association to manage when the landlord association demands so and they in turn hire a facility management company to do the job of which you’d still be paying Service Charge.
This typically happens from 2 years or so and above if the developer has already finished their Development scope in the estate. Also, when there are communal issues like blocked drainages, pot holes, fallen electricity poles etc it’s easier to fix instead of waiting for the government as that’s what the Maintenance aspects of your Service Charge covers.
No doubt, there are some estates where they pay over ₦2M annually as service charge without any extra infrastructure…. the reason is because of Economics of Scale. These estates are usually smaller in sizes and providing the same infrastructure that the bigger Estates provide. Simply put- your car would require ₦1k fuel to drive from Ajah to VI whether you carry just 1 passenger or 10 passengers to bear the cost of the fuel money so when you have 10 passengers like bigger Estates, it’s easier to split the cost hence less Development Fees and Service Charges.
Enlighten and school your clients very well and he’d be asking you “How many plots do you think I should buy? “. Lol
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