NGIA Tumasang,
I am very interested in this topic and I would like us to look at it in detail. I happen to have supervised a thesis on urban land values in Cameroon, the case study of Limbe and Bafoussam.
A piece of land bought in Limbe for 2 million francs 25 years ago was selling for 3 million francs, while a similar piece of land in Bafoussam was selling for a colossal 54million frs. The difference was so large that it appeared unrealistic.
The explanation was simple. The man in Bafoussam has an emotional value for land while the man in Limbe has an economic value for land.
Let's go back to our piece of land in Bamenda. If somebody buys land for 120 million and puts up a building for 138 million as per your analysis, then he has underutilized the land. For that land to be profitable he needs an investment which will be five times the value of the land.
Now, Mr Tumasang, when you talk of commercial land in Bamenda, what type of commercial activity are you referring to? To the best of my knowledge, commercial activities in Bamenda are limited to micro finance, retail, transport and education. Most of the money circulating in Bamenda comes principally from remittances from the diaspora and what government injects monthly by way of salaries. Commercial activities are therefore concentrated on sucking the most juice from these 2 sources. Knowing what civil servants earn in Cameroon, you would agree with me that not much money is in circulation and so there isn't much economic activity.
My conclusion is that land in Bamenda, just like in Bafoussam, has more of emotional value than economic value. Since people from the western province believe that owning land in Bamenda is almost equals to owning land in the western province, they are the ones pushing up the value of land in Bamenda.
It is estimated that in 20 years time, land value in Bamenda would have been pushed up so much by the Bamilekes, that the natives of Bamenda would be pushed out of the town, concludes the study.
Sent from my iPhone 5S
Sent from my iPhone 5S
Dear Mishefon,
greetings from this part of the world.
I have been having a similar discussion like your below with Mr. Owona although I am not sure you have been following it. I have pasted the thread of discussion just to update issues. I will respond to you later on your below mail.
Regards
Tumasang
PREVIOUS MAILS TO OWONA
Hi Mr Owona,
the land is not residential land but for argument sake let me follow your argument and stick with residentia development.
10 flats @200,000 for 12 months = 24,000,000.00
Less say 10% management & maintenance = 2400,000.00
Net rents = 21,600,000.00
Taking years Purchase at 8% based on sales comparables = 12.5
Value of Property having 10 flats = 270,000,000
Cost of Construction
Assume a 4 bedroom flat is 120m2 (large flat) Flat area 120m2
Cost of construction at even 100,000cfa/m2 = (120 x 100,000) = 12,000,000 per flat.
Cost of construction of 10 flats = 120,000,000.00
Add 10% for architectural fees and sales agent fees etc = 12,000,000.00
Add 5% fr unforseen contigency = 6,000,000.00
Total Cost of construction = 138,000,000.00
Residual value of land = Value on completion less cost of construction =(270,000,000 -138,000,000.00)= 132,000,000cfa
Value of land is 132 million cfa.
Mr. Owona, going by your analogy and information, the value of the land is roughly 132 million cfa.
The calculations are generally correct although I have simplified them. The only input you can challenge is the cost of construction of 100,000cfa per m2 but I have checked in Bamenda and that it what they use. If you do not use a lift i.e. flats not more than 4 storeys high, I think with 138 million you can build the flats. A friend of mine is about to complete a 5 storey building in Bamenda station to be used as hotel apartments and I know how much he has spent so far.
Conclusion
The 120 million cfa for a large piece of land on the significant commercial road in main town Bamenda is not off the mark.
Regards
Tumasang
CC: camnetwork@yahoogroups.com; cameroon_politics@yahoogroups.com
To: camnetwork@yahoogroups.com
From: ogeorgesjules@yahoo.com
Date: Thu, 6 Mar 2014 05:26:43 +0100
Subject: Re: [camnetwork] @Owona: @Billy: Land for sale in Bamenda, Ntarikon, 120 million cfa, land title available
Pa Tumasang,Maybe I did not explain myself well. What I am saying is that when we buy land, the aim is to make profit. It is an investment and so we need to make returns out of it.Let us presume that you take a bank loan of 120 million frs to buy the land. In order for real estate investment to be profitable, the value of the investment should be at least five times the value of the land. We are talking here of a building worth 600 million frs. Total investment now is 720 million frs.If you put up 10 apartments on that land and rent them out for 200.000 frs a month, you would be making 2 million frs a month, and 24 million a year. You would need exactly 30 years to recover your investment before you start thinking of making profit. This is based on the assumption that you inherited this money from your father. But in our case, it is a loan, and so you have to add some years on the 30 before you start thinking of profit.Mr Tumasang, you know very well that few people would spare 200.000 frs for rents in Bamenda, since those who rent are civil servants with less than 50.000 frs rents allowance. Even the governor of the NW region has less than 100.000 frs rents allowance.Mr Tumasang, I know you are a valuer and I would like you to tell me if the price of that land is justified for investment purposes. An emotional investment can be justified but not an economic investment.As for Pa Micro, the crocodiles would be hunted for meat before you settle on the waterfront land. Pa Micro, I may be mistaken, but do crocodiles live in the sea? Forgive my naïveté, because I am not Sawa, even though I used to hear people from Mamfe claim that they are Sawa. I am a typical forest man.
Sent from my iPhone 5SHi Pa Owona,
the guys are selling land not apartments so not sure of the relationship.
It is commercial land not residential land.
Good for retail development or inner city hotel development or any other commercial enterprise.
When Guarantee bought the place near Ringway Hotel where he loads from, some many years ago for about 65 million cfa, some said it was not worth it. Go and price it today.
My classmate and friend Awuro Martin is a guru on Kribi properties and I am conversant with the properties in Kribi and how much they are going for. I have been offered many in the past but Kribi is not my fancy for various reasons.
Regards
Tumasang
CC: camnetwork@yahoogroups.com; cameroon_politics@yahoogroups.com
To: camnetwork@yahoogroups.com
From: ogeorgesjules@yahoo.com
Date: Wed, 5 Mar 2014 20:22:18 +0100
Subject: Re: [camnetwork] @Billy: Land for sale in Bamenda, Ntarikon, 120 million cfa, land title available
Pa Tumasang,The price of that land does not make sense because there is no appartment in Bamenda that costs more than 200.000 frs.I am ready to give a waterfront piece of land of one hectare at that same price in Kribi. Contact me if you are interested.
Sent from my iPhone 5SHi Billy,
it is 120 million not 1.2 million cfa. The plot is relatively large and by the way, plots on the tarred road in Ntarikon used to go for 40 to 50 million cfa years ago. Commercial avenue would be in the region of 300 million, Sonac Street in the region of 150 million.
By the way, there are fairly standard houses in Bastos in Yaoundé going from 400 million to 800 million cfa.
Land in Bastos is 120,000 per m2, therefore a 30 x30 plot in Bastos is about 108 million for ordinary residential not even commercial plot in Bastos Yaoundé.
I think 120 million for this land, considering its size and location (tarred road) is not off the mark
Regards
Tumasang
To: camnetwork@yahoogroups.com
From: billymukoi@gmail.com
Date: Wed, 5 Mar 2014 08:02:28 -0800
Subject: [camnetwork] Re: [cameroon_politics] Land for sale in Bamenda, Ntarikon, 120 million cfa, land title available
For real Pa Fru. Was that 1.2million or 120million. Sep the entire Ntarikon, I no sure say e fit cost 120million.
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From: mishefon@yahoo.com
Date: Wed, 5 Mar 2014 22:37:52 -0800
Subject: Re: [cameroon_politics] Land for sale in Bamenda, Ntarikon, 120 million cfa, land title available
Dr. TumasangThis very beautiful Single Family, two car garage home in upscale Upper Marlboro, Maryland was bought in 2008 for $228,205.00. The building is sitting on a 2188 sq. ft Land mass, with amenities including a swimming pool and an artificial lake adjacent to the property. It is close to the famous I-495 Beltway, next to Pennsylvania Avenue,very close to several Metro stations, shopping malls, the "Must Go-And See" Washington Harbor etc. In a nutshell, it is very close to the US Capital of Washington DC. If this Prime Property @ this Prime Location is now selling ONLY for less than $300,000.00...I am completely lost in understanding the rationale behind a $250,000.00 "Empty Land" deal in my own backyard of Bamenda? This is nothing short of "Speculative Shylock" exploitation. No more, no less. No one, and I mean No reasonable human being who has legitimately worked hard for their monies will dole that kind of duff for a volatile, chaotic and unregulated environment.Don't get me wrong. Any "Feyman" who wants to "launder" their "Njoh" windfall, any Government Fonctionary who has chopped BRIBE or any person that has entered "NYONGO or FAMLA" may voluntarily deposit that kind of Cash for a "Non-Disvirgined" Land..NOT this Moi and everyone I know 4 dis Grung. My late father used to say: "Massa Nfon, If you wear shoes, JIGGER no go enter ya foot". Go Figure.IT IS SIMPLY A VERY BAD DEAL. No ifs, No Buts. UN POINT UN TRAIT. Even Landed property in high priced Abuja, Lagos or Bastos-Yaounde does not come close to this Bamendrous "Behind a Petrol Station" transaction.
- Bedrooms: 5 beds
- Bathrooms: 3.5 baths
- Single Family: 2,188 sq ft
- Lot: 0.49 acres
- Year Built: 2001
- Last Sold: September 2009 for $228,205
- Heating Type: Fuel
- Basement: Completely Finished with 2 beds
On Wednesday, March 5, 2014 10:57 AM, Pa Fru Ndeh <PaFruNdeh@YAHOO.COM> wrote:
Dear Dr. Martin Tumsasang,
Thank you for the information. That land dear tam no day.
Peut-etre na daso Dangote go buyam.
Blessed Be Cameroon
Pa Fru Ndeh
--------------------------------------------
On Wed, 3/5/14, Martin Tumasang <tumasangm@hotmail.com> wrote:
Subject: [cameroon_politics] Land for sale in Bamenda, Ntarikon, 120 million cfa, land title available
To: "cameroon_politics@yahoogroups.com" <cameroon_politics@yahoogroups.com>, "camnetwork@yahoogroups.com" <camnetwork@yahoogroups.com>
Date: Wednesday, March 5, 2014, 8:48 AM
Dear All,
there
is a piece of land on the tarred road in Bamenda, after
Ntarikon Market, around council junction, not far from the
petrol station and not far from Alain Njoke snack bar.
The
plot has land title and the family selling wants
120 million cfa for
the plot.
If
interested, contact me privately to link you to the selling
family. Please only genuine buyers. I am NOT an agent
for the plot. It was offered to me but because of
other priority commitments, I do not think the timing
is right for me so I am passing the information to other
potential buyers.
Regards
Tuasang
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