Moses: Robust Mortgage System Necessary for Affordable Homeownership

Forbes councils coach, Amazon best-selling author, property mogul andFounder & CEO of Property Wealth Education, Dr. Daniel Moses in this interview with Eromosele Abiodun, speaks oninvestment opportunities in the Lagos property market, how establishing a robust mortgage system with favourable terms and rates, are necessary to enable more people afford homeownership. He also spoke about his book, “The Test: Transitioning from the Ordinary to Extraordinary,” and how to invest in UK properties that generates regular cash flow. Excerpts

Tell us about yourself and why you are so interested in real estate.

My name is Dr. Daniel Moses, and I am the Founder & CEO of Property Wealth Education. Real estate has always held a special place in my heart due to my personal journey and experiences. Several years ago, I faced significant challenges, including a business failure that left me with £150,000 in debt. At that critical moment, I made a life-changing decision to pursue wealth through property. Since then, I have not looked back. Today, I am proud to lead a successful 7-figure property business, with aspirations to achieve 9 figures within the next decade. With over 1,000 satisfied clients whom I have mentored, I find immense joy in witnessing their transformations and successes. As a devoted husband and father, my family values and faith in God serve as my guiding principles, inspiring me to teach and empower others to build generational wealth through property.

Give us your background in real estate and your key portfolio.

My real estate background encompasses properties located across London and the north of England. I have built a diverse portfolio that includes shared houses, short stay lets, and family lets. These properties consist of both privately owned assets and properties I manage for others. By maintaining a versatile portfolio, I ensure a balanced approach to investment and capitalise on various market opportunities.

What do you think about the Lagos property market and its challenges?

The Lagos property market offers tremendous growth potential and investment opportunities. However, it also presents its fair share of challenges. The rapid population growth and urbanisation in Lagos have led to high demand, driving property prices upward. This affordability challenge affects many individuals and families. Additionally, inadequate infrastructure, such as power supply and transportation systems, can hinder property development and investment. Issues related to land documentation and titling processes can also create hurdles for property transactions. Despite these challenges, the Lagos property market remains attractive due to its potential for capital appreciation and rental income. With the right strategies and market knowledge, investors can navigate these challenges and capitalise on the opportunities that Lagos offers.

What projects would you prefer to market, commercial or residential?

I would currently lean towards marketing residential properties. While I do have insights into the commercial market, especially in the UK, I believe that residential properties offer more potential for beginners in property investment. They provide a solid foundation and the opportunity to gain substantial returns. Once a strong position is established in the residential market, one can venture into the commercial market with more stability and cash flow, enabling them to compete with established players.

A good number of people have suffered setbacks in terms of investment in property in Lagos. What is your advice for prospective investors?

Although I haven’t personally invested in Lagos for around 20 years and don’t have extensive knowledge of the current market, I can provide some general advice. Investing in Lagos can present challenges, particularly in securing lending and financing. It’s crucial for property developers and investors to understands how to leverage and raise investment finance to strengthen their position in the market and overcome setbacks. The lack of easily accessible mortgage systems in the Nigerian market adds to the difficulties. This stands in contrast to international countries like the UK and the United States, where mortgages are readily available to citizens. The availability of mortgage options significantly contributes to a thriving market. Prospective investors in Lagos should focus on understanding the financing landscape and exploring creative ways to raise capital. Building strong relationships with lenders, leveraging partnerships, and seeking guidance from experienced professionals can help mitigate setbacks and increase the chances of successful property investments.

What’s the ROI like with your projects? What can tilt prospective buyers your way, considering the stiff competition out there in a depressed economy?

Over the past six years, I have been involved in various property projects, both personally and for investors. Let me share an example from one of our past projects. We acquired a three-bedroom semi-detached house in London for £450,000. After investing approximately £220,000 in refurbishing the property and converting it into a six-bedroom House of Multiple Occupation (HMO), we had the property revalued at around £950,000. This increase in value was achieved through strategic improvements and adding bedrooms. In some cases, we incorporated features that could potentially increase the property’s value by more than £20,000. With the property’s new valuation, we secured a remortgage against its new value at 80 per cent loan to value, releasing almost all our initial investment without selling the property. Currently, the same property generates a gross rental income of approximately £72,000 per year. Analysing this scenario reveals a significant return on investment, almost bordering on being infinite. I must emphasize that these types of projects may not be available every day, but they demonstrate the lucrative nature of the UK investment market. Understanding market dynamics, having a keen eye for opportunities, and knowing how to navigate the market can give prospective buyers a competitive edge, even in a challenging economy.

There are growing cases of conflict between developers of estates and homeowners in respect of control of facilities. What, in your opinion, can resolve this issue?

Clear and well-defined agreements between developers and homeowners regarding facility control, along with effective communication and dispute resolution mechanisms, can help resolve conflicts in a fair and amicable manner. Establishing transparent guidelines and maintaining open lines of communication throughout the development process are vital to prevent misunderstandings and foster harmonious relationships.

Housing finance is a crucial component of homeownership. What do you think about Nigeria’s mortgage system?

When assessing Nigeria’s mortgage system, it becomes evident that there is a need for substantial improvements. Limited access to affordable financing options and high interest rates poses challenges for prospective homeowners. Enhancements to the system, such as establishing a robust mortgage system with favourable terms and rates, are necessary to enable more people to afford homeownership.

What role do you think the government should play to enable more Nigerians to have suitable accommodation?

The government should play a crucial role in enabling more Nigerians to have suitable accommodation. This includes facilitating access to financing through initiatives like establishing a robust mortgage system, providing financial assistance programs, and encouraging public-private partnerships. Enhancing infrastructure development and supporting slum upgrading and rehabilitation programs are also essential to improve living conditions and create more affordable housing options, and more private investor to establish mortgage banks for lending would help a lot of developers and lenders thrive in the market.

Is it compelling for everyone to build a house or have access to decent accommodation? What are your thoughts on this?

From an investment perspective, I highly recommend individuals focus on acquiring income-generating assets, such as properties, before considering their own residence. Personally, in the UK, I live in a rented house while building a property portfolio that generates rental income. I believe it’s important for people to prioritize creating wealth through assets first, which can offer long-term financial benefits, rather than solely focusing on homeownership.

Some people have bought land designated as government excision from people who are not authorised to sell. What do you think can prevent this, particularly with prospective buyers?

To prevent unauthorised land sales, prospective buyers should take preventive measures, such as conducting thorough due diligence. This includes verifying the seller’s authorization to sell, examining legal documents and land titles, and consulting relevant government agencies for verification. Engaging the services of legal professionals and reputable real estate agents can provide guidance and ensure adherence to necessary procedures. Additionally, raising awareness about the risks involved and promoting public education on land transactions can help protect individuals from falling victim to such fraudulent activities.

Your book, “The Test: Transitioning from the Ordinary to Extraordinary,” is based on your experience in business. Tell us about the book.

“The Test: Transitioning from the Ordinary to Extraordinary” is a heartfelt book that draws upon my personal experiences, difficulties, tests, sufferings, and victories. Inspired by my entrepreneurial journey and mentoring over 1,000 clients, the book provides insights and practical strategies for achieving success in all areas of life. I share personal stories and offer guidance on overcoming challenges, harnessing the power of the mind, making effective decisions, seeking advice from the right people, and selecting wealth creation opportunities. It is the second part of my entrepreneurial journey, and my hope is that readers can relate to the concepts, find applicable wisdom, and apply them to their own lives. I believe that there is room for all of us to achieve greatness, and I am excited to see readers reach new heights through the book.

What should Nigerians who are looking to invest abroad do, considering the current trend of “JAPA” taking place in history?

Well, this question addresses two important issues. Firstly, before making the decision to travel abroad, it is crucial for Nigerians to engage in thorough analysis and research. Traveling solely for the sake of it without proper planning may lead to challenges and obstacles along the way. Success in a foreign country requires hard work and determination. Factors such as exchange rates, job prospects, and settling down in the new country should be carefully considered before embarking on such a journey. Secondly, investing abroad can be an excellent opportunity for Nigerians, especially for purposes such as seeking quality medical treatment, providing education for their children, or even regular visits to countries like England. It is important to explore avenues for investing in real estate in the United Kingdom by seeking advice from knowledgeable investors or professionals in the field like me. Options such as investing in properties that generate cash flow on a monthly or yearly basis can provide a substantial income to cover expenses while staying abroad. Nigerians should also consider how they can invest internationally and earn income in foreign currency that can be used back home in Nigeria. Given the current economic challenges and exchange rate fluctuations, careful consideration and consultation are necessary. There are various ways to invest in UK real estate or other international markets, and seeking guidance from experts, such as scheduling consultation calls, can provide valuable insights into different investment options. This approach allows individuals to earn income while in Nigeria or while visiting foreign countries, rather than solely relying on paying their expenses for medical treatments or education the serving in Naira. Nigerians should begin to consider investment opportunities and strategies rather than solely focusing on traveling abroad. Investing in real estate or other assets that generate income can provide financial stability and cover expenses while staying in foreign countries. It is important to explore various investment options, seek advice from experts, and consider the potential benefits of generating income in foreign currencies to address the current economic challenges.