Fortune News | Aug 28,2021
Three years ago, 48-year-old Almaz Mekonnen, who had been living in a rental house for almost a decade, had decided to end life at a rental house.
"Rental fees were constantly increasing, becoming a challenge for us," Almaz, who had rented at multiple condominium sites in the city," told Fortune.
Born and raised in the capital, the mother of two did not have much information about the real estate industry, especially concerning locations and prices.
Even though she and her husband decided to buy a house, they could not settle on purchasing a house since they found most of the houses they visit expensive.
"The house we wished to buy did not match our budget," she said.
They looked at a two-bedroom unit on the fourth floor of Yeka Abbado Condominium site, but at 850,000 Br, it was too steep for their budget.
Almaz believes that having less information about the real estate market was the primary reason that led them not to buy the unit at that time.
"If I did have enough information and consulted with real estate agents," said Almaz, who owns three shops that sell children's clothing and toys located in Gerjii, CMC and Bole, "I would have purchased one at another location with my budget."
Recently, the soaring rental fees became too much to bear for her family, and they decided to enter the housing market once again. The first thing she did was search for a real estate agent that could help her find a good house that met their budget.
She approached Ashenafi Fisseha, a partner at RealEthio.com, a real state company that was established in 2010 and has listed 4,500 properties available for sale online, to help her find one. What she discovered while searching for the house was that the price of housing has significantly spiked in the last three years.
"If we managed to buy one three years ago," she said, "the price wouldn't be this high."
The current price for a condominium ranges between 20,000 and 40,000 Br a square metre depending on the location.
Before the Ethiopian New Year, Almaz bought a two-bedroom condominium located around Summit Condominium for 1.2 million Br on August 15, 2019.
The current price for a condominium ranges between 20,000 and 40,000 Br a square metre depending on the location.
Real estate companies sell apartments at prime locations in the city between 50,000 to 60,000 Br a square metre, with prices falling to 40,000 Br a square metre in suburban areas on the outskirts of the city.
A villa house that sprawls on 600Sqm could be sold for as high as eight million Br.
Since buying a house is one of the big financial decisions, home buyers like Almaz should have some necessary information about the real estate market before making any decision. To get to know this basic information, Fortune sat down with Tsedeke Yihune, a shareholder and former CEO of Flintstone Homes, and Ashenafi of RealEthio.com, to spot 10 tips a home buyer should know when buying real state.
Many home buyers went to real estate dealers without a clear preference of what kind of house they want to buy. Before venturing into the real estate market, a home buyer should decide what kind of house he or she wants to buy, know the pros and cons of that type of house, and whether the facilities match their lifestyle.
Once a home buyer pays for real estate, many people assume that the buyer is done with the payments. However, it is not. There are miscellaneous expenses that follow after the deal is concluded. Fees for buying insurance, for furnishing, for maintenance and property taxes are costs that a home buyer will incur.
Since there is high traffic congestion during peak hours, as well as a transportation problem, home buyers should take living locations close to work into consideration to have a comfortable life and avoid a hassling commute. If not, the house should be in an area that is convenient for public transportation or with less traffic congestion.
Every neighbourhood has unique qualities that anyone should be aware of before deciding on the purchase of a house. It will aid the home buyer in making an informed decision.
Any home buyer should check the proper installation of the electrical and water system of the housing unit. This will save the buyer from inconveniences while living in the house and additional costs to fix issues with these utility systems.
The home buyers should check whether the house has all the necessary documents such as a title deed. Once the seller provides these documents, the buyers should verify the authenticity of the documents.
If a seller offers a very cheap price of a house, refrain from accepting the deal. There might be issues with the house such as an outstanding loan, defects or court cases.
Real estate agents and salespeople might not provide complete information about the real estate. Therefore, the home buyer should have clear and accurate information about the real estate market.
There are many incidents where houses are demolished after the home buyers bought them as the area was designated for road construction or other infrastructure development purposes. To avoid such kinds of inconveniences, buyers should cross-check that the plot is designated residential in the city's master plan.
In the contractual arrangements for the sale of a house, there might be some articles that might be against the interest of the buyer or that may favour the seller. Thus, go through it carefully. The contractual agreement is very essential.
PUBLISHED ON
Sep 08,2019 [ VOL
20 , NO
1011]
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