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The Concept of Equity in Real Estate

“The home owner may be unlucky even, that is he or she might end up not selling the property for the N15 million he bought or spent on the property and instead, sell it for something lesser like say N10 million all depending on the economic turns.  “

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The Concept of Equity in Real Estate

So what’s the fuss really on about Equity in Real Estate, you obviously may be wondering about as a newbie in the real estate business.

It’s pretty much a very simple one actually because it’s more of an investment by a homeowner made on his own mortgage home.

In essence, the home is an investment that has a market value, take away any fees that the home owes in mortgage and whatever is left of it is the equity of the property.

The Concept of Equity in Real Estate

Equity.

Take for example you are able to sell your home for N25 million after having bought it or spent a huge chunk of money building and keeping it in maintenance for not less than N24 million, the N1 million you get to keep as a profit for its sale is the equity the minute all expenses made on the house are paid.

The benefit of having your home become an equity is so it can be leveraged as a financial asset in times of obtaining loans to pay off debts or to finance investments.

Equity of a house can be built for instance when a house gets to be purchased by an individual and he or she gets to make a large down payment on the property of pay it off quickly in time for its value to rise before selling it off for profit.

Or, a home can be improved upon to increase its value in the eyes of investors.

And of course, a house can also lose its value in the real estate market if the building falls into disrepair or damage, or worst of all, through economic depressions and market changes.

In this case, say the economy becomes a mess and you are thinking of selling your property at such times, you may be selling at an inflated price that may not be up to the amount you spent on it in prior years.

For example, say you bought or built a property for N15 Million in the 1990s, and you are trying to sell it in current climate, of course, the money that would be paid could end up being N30 Million but measuring the worth of the N15 million you spent on it in the 1990s may be worth more than the N30 million that is being paid or the equivalent of it.

The Concept of Equity in Real Estate

When this happens, then there is obviously no equity.

The home owner may be unlucky even, that is he or she might end up not selling the property for the N15 million he bought or spent on the property and instead, sell it for something lesser like say N10 million all depending on the economic turns.

So a building equity allows for a return on investment the minute you decide to sell your property.

Finance

The Reason Nigeria’s Central Bank is debiting Banks

“For failing to satisfy the required minimum cash reserve ratio, 15 banks have been debited 838.32 billion by Nigeria’s central bank.”

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The Reason Nigeria’s Central Bank is debiting Banks

For failing to satisfy the required minimum cash reserve ratio, 15 banks have been debited 838.32 billion by Nigeria’s central bank.

First Bank, Zenith Bank, Access Bank, Union Bank, United Bank for Africa, Polaris Bank, and Keystone Bank are a few of the banks that are impacted.

In an effort to stop inflation and currency devaluation in the nation, the Central Bank of Nigeria (CBN) declared in September that the CRR will be raised to 32.5%.

As a result of 15 banks failing to satisfy the required minimum cash reserve ratio (CRR) standard, the Central Bank of Nigeria has debited them 838.32 billion.

Zenith Bank (270 billion dollars), Access Bank (205 billion), United Bank for Africa (134 billion dollars), FCMB (90 billion dollars), First Bank (33 billion dollars), Union Bank (29 billion dollars), Keystone Bank (14 billion dollars), Titan Bank (11.6 billion dollars), Polaris Bank (10 billion dollars), Nova (5.5 billion dollars), Unity Bank (one billion dollars), Heritage Bank (470 million dollars), FBN Microfinance Bank (460 million dollars), and Suntrust Bank (92 million dollars) are among the affected banks.

The Reason Nigeria’s Central Bank is debiting Banks

The amount of customer deposits that must be held with the Central Bank is known as the CRR. Commercial banks are required to deposit 325 for every 1,000 that their customers deposit at the present rate of 32.5%.

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), said at a meeting of the monetary policy committee in September 2022 that the bank was increasing its CRR from 27.5% to 32.5% as part of its efforts to control rising inflation in the nation.

The benchmark interest rate was also hiked by the CBN to 15.5% in addition to the CRR.

He said that failing banks would be prohibited from using the foreign currency market until they comply with the new rule. The CBN Governor added that one of the causes of the rising inflation rate and currency depreciation was the economy’s increased liquidity.

An effective way to control the flow of money through an economy is to raise the CRR. It has an impact on banks’ access to capital as well as their capacity to extend loans. Additionally, banks’ interest rates can rise as a result of this.

It also guarantees that banks will have a sizeable reserve to fall back on if clients demand their money.

 

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Finance

Africa’s GDP at 35% risk to Climate Change

“The president and chief executive officer (CEO) of the Africa Finance Corporation (AFC) stated during a panel discussion at the Reuters Impact climate conference on October 3rd in London that the continent’s gross domestic product (GDP) is at danger by up to 35% due to climate concerns.”

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Africa’s GDP at 35% risk to Climate Change

The president and chief executive officer (CEO) of the Africa Finance Corporation (AFC) stated during a panel discussion at the Reuters Impact climate conference on October 3rd in London that the continent’s gross domestic product (GDP) is at danger by up to 35% due to climate concerns.

He asserts that the number will continue to rise as long as Africa lacks climate change-resistant infrastructure.

The AFC, according to Zubairu, thinks that Africa has a chance to seize the moment and develop ecosystems of adaptation because of the difficulties associated with the energy transition, the energy crisis, and the food crisis that Africa and the rest of the world are experiencing.

Africa must create ecosystems that enable reforestation so that trees may absorb carbon and provide women with access to cleaner cooking options because the use of firewood as a cooking fuel depletes the forests, which serve as carbon sinks. Only 1% of the world’s finest solar resources are used, even though 60% of them are in Africa. The underdeveloped hydropower and natural gas resources of Africa could be a major factor in the current global difficulties, according to Zubairu’s statement.

To achieve a just energy transition, Zubairu stressed to the guests of the Reuters Impact conference the importance of dependable access that is affordable for the great majority of people.

In addition, he pointed out that up to 900 million Africans lack access to clean cooking, making up 80% of the world’s population without access to power.

Africa’s GDP at 35% risk to Climate Change      Africa’s GDP at 35% risk to Climate Change

“Just transition for us is access to energy that is affordable, energy access that does not compromise economic development in Africa, and energy access that allows for the key challenges around financing, and adaptation to be resolved at the same time as economic development.

“When we look at projects and opportunities, we are trying to see how we can build an ecosystem along value chains that allow for carbon neutrality as we go along but the focus is on economic development,” Zubairu says.

Numerous parties have urged to cast doubt on the philosophy underlying the Global North’s advice to Africa not to exploit its natural gas resources. Zubairu contends that asking individuals to stop using gas while imports of fuel oil or the use of coal are options is inappropriate. He claims that the AFC built Cape Verde’s first wind farm, which provides 20% of the island’s energy needs.

The company is also constructing the first independent power project (IPP) in Djibouti to replace fuel imported from Ethiopia, a gas-fired plant in Ghana to replace fuel imported in the form of fuel oil and diesel, as well as a gas plant in Senegal to use Senegalese natural gas. He claims that each of these initiatives lowers carbon emissions.

Zubairu urges Africans to be practical in his appeal for a consensus between the continent’s political and commercial elites to address the continent’s current energy poverty concerns.

He claimed that focusing on emissions reductions, to which Africans contribute the least, is not the most sensible course of action. Instead, emphasis should be placed on increasing capacity for solar energy, using electric vehicles, and altering how resources are extracted from the continent.

He claims that after mining, the minerals are sold to Asia, where they are processed before being exported to other regions of the world. He claimed that this could not go on and that Africa needed to process its mineral resources as well so that value could be captured before exports and that it could increase its mining capability.

Africa has to increase its mining capability, more minerals should be found, mined, and processed on the continent, according to Zubairu. Infrastructure capacity will rise with increased investments in adaptation.

Sudanese philanthropist Mo Ibrahim spoke forcefully for energy justice during the same panel discussion. He explained to the audience that a country’s carbon emissions increase with its level of development.

Africa’s GDP at 35% risk to Climate Change Africa’s GDP at 35% risk to Climate Change

“You cannot discuss environmental justice without addressing energy justice,” he asserts.

Despite being the lowest contributors to CO2 emissions, Africans are the ones most impacted by climate change. Desertification causes disputes between farmers and herders throughout Africa; these conflicts are distinguished by violence in Sudan and Nigeria due to environmental implications.

Africans are suffering as a result of external causes which Zubairu says he finds absurd that some people traveled to Glasgow last year and made the decision to stop funding worldwide fossil fuel projects. 600 million people in Africa lack access to electricity.

On the continent, there would be no jobs, no healthcare, and no education. Without regard for what the global South needs, the global North constantly discusses and makes decisions.

We are not allowed to use our gas, even though Europe receives half of the natural gas produced in Africa. This type of injustice must end; without Africans’ participation at the table, no one should discuss justice, he alleges.

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Finance

Heineken Invites Graduates for Finance Mgt Program in Cairo

“Graduates are invited to apply for Heineken’s Finance Management Trainee Program in Cairo.”

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Heineken Invites Graduates for Finance Mgt Program in Cairo

Graduates are invited to apply for Heineken’s Finance Management Trainee Program in Cairo.

The Heineken Finance Management Trainee Program is now taking applications, and young graduates who are eager and ambitious are encouraged to apply. Graduates will have a variety of professional opportunities as a result.

The program is designed to provide you early responsibility and enable you to get started right away. Additionally, a portion of your time will be dedicated to job-specific training to ensure that you have the skills you need as an employee for our organization.

Graduates of the trainee program will have the opportunity to receive regular feedback as well as training from knowledgeable coaches.

Heineken Invites Graduates for Finance Mgt Program in Cairo

The program going by its details takes place in Cairo, Egypt; the North section of Africa and its basically centered on those in the Finance field with a Bachelor’s degree qualification. The program is intended to run for 2 years with the application date closing 30th November 2022.

The Heineken scheme covers people of different nationalities.

Rotations among the Finance department’s duties are part of the Management Trainee Program. To guarantee that the joiners have access to a variety of learning and development opportunities, you will be given a specific assignment for each role.

To apply, click here

 

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