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Ethiopia: How buying a real estate in Addis can be a nightmare you could do without

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07/14/12

  04:41:17 am, by admin, 2284 words  
Categories: Ethiopia

Ethiopia: How buying a real estate in Addis can be a nightmare you could do without

Ethiopia: How buying a real estate home in Addis can be a nightmare you could do without

By Tadeos Anteneh

The wide ownership gap in the Ethiopian property market means more and more Ethiopians in the Diaspora are joining in the rush to invest and turn in quick profits by letting to wealthy foreigners or re-selling to locals keen to lay their hands on a readily available property in a relatively nicer part of town.

Of course not all who invest their hard-earned cash towards the ownership of a house do so with the aim to gain from the woeful shortage of decent housing in the country, which has seen the rapid rise of its urban population in recent years. According to some estimates, Ethiopia’s urban population will peak 23 per cent of the total population by 2030. At the moment that number stands at 17 per cent.

However, experience shows that, too many in the Diaspora buying a house in Ethiopia can be an experience they could live to regret. At least that’s what the classic case of an Ethiopian American whose gold rush to seize the moment demonstrates.

For Abebe Getachew, the opportunity to own a swanky new villa in suburban Addis Ababa came shortly after his graduation from college when buying a house in his hometown wasn’t quite at the top of his list of priorities.

Yet as many would do when caught in this situation, his response to a frantic phone call from his mother in Addis about taking advantage of a bargain house price offer by a private developer was a hasty yes. With the developer offering a 10-year mortgage for buyers able to advance 50 per cent of the total price, those like Abebe could hardly resist the temptation to wait and ask for more questions.

However, only time was to reveal the nasty surprises awaiting months and years down the line.

Shoddy construction, poor design, and an unstoppable hike, which soared to two times the original price, were only some of the troubles encountered by the trusting Diaspora investor.

When the long-awaited end of his nightmare home ownership journey finally arrived, it didn’t just come with some inferior quality construction and an unprecedented spiraling of the cost but a whopping delay of five long years abundantly punctuated by instances of endless energy sapping disputes.

As many who have gone down this path would recognize, this is of course a story that repeats itself across the fast growing property market in Ethiopia today.

The irony of course is how some scheming real estate firms use stories such as this to lure Diaspora home buyers who might be otherwise wary of investing for fear of bad experiences of the kind described above.

I found the above anecdote on the Access Real Estate (ARE) company website while browsing the net for information on the multifaceted problems of buying a house in Ethiopia for those still living abroad.

Access Real Estate SC is of course a relatively new player on the booming Ethiopian real estate market arriving on the scene a mere three years ago amid pledges of delivering sleek new affordable homes faster than its competitors.

It caught the attention of home-buyers after advertising it would complete and deliver high quality apartments in just 12 months or pay its customers a monthly compensation fee of Birr 5000 for each month of delay.

This was of course despite failing to meet previous delivery deadlines on its maiden developments in the Megenagna and CMC areas. In 2011, customers who bought apartments at the company’s Meri Diplomats development site were told they would be paid partial compensation because the project missed the delivery deadline by seven long months.

The company blamed the partial compensation on the Addis Ababa Municipal Government, which in October 2010 ordered all real estate firms in the capital to suspend construction activities while it conducted a land-audit to deal with the host of illegal profiteering going on at the time in the real estate industry.

Failing to complete on time is of course not the single most serious problem in the real estate sector in Ethiopia even though it’s a common feature in the multi-billion birr industry consisting of at least 400 firms scrambling for a share in the market.

According to Addis Fortune, almost all real estate developers commit to complete and deliver units within 24 months, although hardly any of them have managed to meet this deadline.

In January 2011, customers who paid deposits to May Real Estate took the company to court for failing to deliver their homes on time despite collecting the full price of the homes it agreed to build and hand over.

Access is of course on a league of its own reducing that delivery commitment into a clever marketing gimmick by pledging to halve the time it takes to deliver apartment blocks to mere 12 months.

Other far more seriously worrying practices for buyers include real estate companies often signing up their customers on almost phantom projects. Experience shows both local and Diaspora home buyers remain stuck in almost fictional projects that do not get off the ground for years as they have been locked in purchase agreements signed without the real estate firm ever showing essential paper work necessary to prove the legitimacy of their proposed projects.

Many home buyers, certainly those in the Diaspora, do not realize that they should as a matter of precaution first check if the real estate company legally owns the proposed building site, has an approved building design and can show a construction license given it by the local municipal authority before putting pen to paper.

Without these three essential requisites real estate customers signing up to buy homes could end up in litigation for years in the largely over-burdened legal system as the present gap in regulation means no real adjudicating organ (regulator) aggrieved buyers could turn to.

Buyers often complain about the lack of updates on where the projects they have signed up for remain long after they have paid deposits. However, despite endless pledges of keeping them informed throughout the progress of the construction, real estate companies often ignore customer persistent inquiries while they hammer out land ownership and construction design and permit requirements. These are of course preliminary undertakings developers should have put in place before marketing on glossy flyers these ostensibly luxurious homes, which may well turn out to be a pipe dream for many.

When projects fail to get off the ground, real estate firms often blame the regulatory system such as the local planning authorities, which approve or reject proposed developments by checking compliance with existing applicable laws.

Where the developer had sold homes for future construction in much sought after city center locations, buyers risk a further delay to the delivery of their homes, as the developer must get through an additional legal process governing third party property title transfers. This happens when a real estate company buys land from private owners in relatively affluent parts of town with real or potential access to local services and infrastructure.

Once again, such delays could have been avoided if the real estate firms didn’t market proposed developments on the assumption that their projects would run on schedule having successfully passed through the land title transfer process.

For example, buyers who paid up to the full price of apartments are at present caught up in a 15 month procrastination and delay when Access Real Estate found itself stuck in an obscure regulatory quandary after selling out 32 apartments on a seven storey block it planned to erect in an area once the exclusive reserve of senior Dergue government officials and foreign diplomats.

Other more sinister practices include sudden terminations of contract before delivering the homes as happened between May Real Estate and its customers. When developers find themselves stuck in the mud for shortage of finance to complete their projects, they have threatened buyers with terminations of contract unless they agreed to new terms and conditions which include a new price.

May Real Estate customers had to take their seller to court to get the homes they had paid for. The cost of such experiences is of course beyond financial. It wrecks plans and hopes. As the shadow of uncertainty hangs over the outcome of a law suit, the psychological impact that follows is considerable for those caught up in the dispute.

In a still bleaker experience, unsuspecting customers who had bought properties from Meketa Real Estate company were caught out when the owners Kebede Tesera and wife were sent to jail for 20 years having been found guilty of money laundering, tax evasion and illegal banking.

Similarly Ayat’s major shareholders Ayalew Tesema and Ayele Debela (apparently nicknamed IMF for his high interest lending) presented exceptional risk to their customers when they were found guilty of tax-related charges and loan-sharking a few years ago.

Fortunately, no customers are reported to have lost their investment as a result of the misdeeds of Ayat’s senior executives. But there can be little doubt the events part explain some of the appalling delay home buyers have experienced as key personnel are taken out of the company’s decision making process for failing foul of the law.

As Ayat and Meketa’s customers would know, outright criminality by well-heeled proprietor-managers is a serious risk to those investing their lifetime savings to own a home they can call their own.

However, that level of risk could still haunt customers in a different context if those at the helm of these firms are willing to bend the rules in a greedy drive to maximize profit.

Take for example the case of one senior real estate manager whose bid for a top position in a private bank was twice rejected before he was banned altogether from ever taking a leading role in the banking industry.

While the finer details that led to his prohibition remain unclear, it’s widely reported that his role as chief of Zemen Bank as well as Access Capital - the parent investment firm- meant he could not carry out his duties as required by law without a conflict of interest. Or at least that’s the verdict of the National Bank of Ethiopia, which imposed the ban earlier this year.

External auditors who looked into Access Capital’s books later flagged up this concern when they said they believed Access Real Estate’s home buyers are at risk of losing their deposits because of investment and lending irregularities inside the parent investment firm.

The audit report is quoted as stating 75 per cent of Access Capital’s investment is financed by mobilizing funds from the real estate arm of the company effectively suggesting that the chances of buyers owning the homes they have paid for are as good as the company’s ability to turn around its fortunes in other areas of its investment. A massive gamble no customer would have been willing to take if presented with such inside knowledge prior to paying deposits.

Last month, a federal high court ruling in Addis Ababa indirectly raised the stake for the company and its customers when it handed down a sentence ordering the Access boss and two other fellow share holders at Apex Bottling Ltd to comply with a previous employment tribunal ruling which found their mineral water bottling company had unlawfully dismissed over 200 employees when it went belly up after running up tax arrears to the tune of 60 mln Birr.

The significance of this separate development to home buyers at Access is that it would add a further financial and reputation strain to the company at a time when it is facing considerable criticism and potential compensation claims from customers for projects running far behind schedule. You could ask how so when Apex Bottling is a different establishment not directly related to Access. The facts are the beleaguered bottling firm and Access Real Estate are both led by a major share holder who holds most senior positions in the management of both firms.

In April, speculations were swirled around about the company’s internal finances and its overstretched management capacity as Access announced it was expecting a 2 bln Birr injection in investment as a result of a new deal with the Dubai-based Soliton Holding Ltd. The announcement came as delays and deferments continued to afflict the bulk of the company’s nearly 40 construction projects across the capital.

A previous partnership announced late last year with Greenview Consulting, a German management consultancy group, was supposed to have brought some visible progress to Access’ projects. Yet there is little sign of that happening as boss Ermias Amelga is forced to issue repeated apologies and reassurances to calm the nerves of unsatisfied and worried home buyers.

Neither announcement has however stopped worried home buyers from getting increasingly skeptical, as they fear the company may be trying hard to calm their nerves by putting out stories to confirm that all is well despite the huge lag across its projects.

Meanwhile new customers contemplating to buy homes in Ethiopia ought to undertake careful research before parting good bye with their hard earned cash if they wish to save themselves the multi-faceted ordeals of investing in today’s real estate market.

This is of course easier said than done given the palpable lack of reliable information sources on the housing market and the rules that govern it.

The late awakening (the draft Real Estate Home Developers Proclamation) by the authorities to fill the gap in regulation may be a step in the right direction to safeguard customers by ensuring better standards in the real estate market but it comes too late for those already trapped in a whole series of problems with their sellers.

Share your thoughts on the subject on facebook and on twitter #addisrealestate.

68 comments

Comment from: Open your eyes [Visitor]
Open your eyes

What would you expect from a third world country with third world rules governed by a third world mentality?


07/14/12 @ 05:50
Comment from: debarkiew [Member]  
debarkiew

heartly thanks for your clear information

07/14/12 @ 07:52
Comment from: aksum [Member]  
aksum

It is to the credit of TPLF that we see a new investment branch in housing. There could be some problems. But generally, it is worth the pain investing in Real Estate in Addis Abeba, which will be one of the busiest cities in the world in the coming years.

Urbanization in Ethiopia could increase by 50% in 2030 if electrification and industrialization goes. Towns like Mekelle, Gondar, Dire Dawa, Bahir Dar, Debre Markos, Nazreth, Nekempte, Aksum could be major cities in Africa or the world with population 10 times their current.

Real Estate is new in Ethiopia. The government mght face some difficulties of controlling. But in such the courts are pretty good. It is in the interest of the country as a whole, that there is proper transaction and reliablity of services. Ethiopians are usually honest and fair in dealing with businesses like Real Estate or ay other investment.

07/14/12 @ 08:15
Comment from: Tes [Visitor]
Tes

wel said thankyou ! the diaspora is paying the price for no access to information and communication. where we live thanks to the technology we get all the info we need a click away but back home I guess you just have to be lucky and keep your fingers crossed for what so ever you do.
information is power. I would really like to read more of these kinds of articles where we all can benifit from it.
countries like Kenya they are well advanced on information and technology than where we are. They are building the culture of sharing information and dialoge.
as we spend our dear time on reading and writing comments it would be really nice if we can all write something worth our time !
peace out all and thankyou again I enjoy readding your article Tadios looking forward to read more of the same ! Tes

07/14/12 @ 09:20
Comment from: Solm [Visitor]
Solm

“Magdala”
Did I read “busiest city in the world” Your comment is fair if you take out the daydream parts of top cities in the world etc. part.

Tadeos’s article is a sign that there is still good journalism in Ethiopia.


07/14/12 @ 09:40
Comment from: Wetu Enewta [Visitor]
Wetu Enewta

A very interesting and useful article! In my visits to Addis, I have yet to witness any home or apartment (including homes whose pictures have been published on the web as being top class) that is of the advertised class andd quality. The shoddy construction is obvious; the finishing is ridiculously of agrarian mentality; the placement of amenities is laughable and in congruent; and even the flooring (despite some expensive material) is almost peasant like! That is my experience, and despite the harsh words, many who have had access to these homes will agree with me. On a much higher reflection, I say that greed leads to all sorts of problems. Greedy persons may be happy temporarily but suffer fools-gold in the long term. And finally, no one should place any faith on contracts and the legal system. Legal documents don’t have much weight that far from civilization. Just a little bit of wind of the proper kind will blow them around!! You have been warned.

07/14/12 @ 10:18
Comment from: kuku [Visitor]
kuku

I believe this issue touches every Ethiopians inside or outside the country. No matter how small it is everyone is working hard to own a house in their own country – where they can say yes this is my home. But, in reality the real estate business in Ethiopia is a total mess. When it comes to house sell and buy business in Ethiopia, you can not trust your own family leave alone agencies. Forget about the fake government courts. How many of our hard working sisters and brothers working in the Middle East afford to own their own house with this price. For some, they have been ripped off their hard earning money by those merciless so called agencies in Addis. How many Diaspora Ethiopians have been suffered due to house and land sale issues? I am sure this issue is too big to be concluded with this one article. We need to discuss it in detail and let our community be aware of the reality inside Ethiopia. We need to tackle the issue into different sections. For now let us start with the market value in Addis. 1st the price: the price of houses in Ethiopia, particularly in Addis, whether from individuals or real agencies is unreal. A small villa will cost you a minimum of 2-5million birr. If you have this hard earn money in Ohaio or Indiana states, it can buy you three or four good villas with excellent return value.

A year ago I was in Addis and went for house shopping. Almost out of the city somewhere I found one (Italian/Ethiopian) real estate agency whose starting price for a semi-detached 3-bed room house was around 250,000euros. Not birr euros. I did ask the agency why their price is not in birr and too expensive. The agency said because we are targeting foreign customers not expected ordinary Ethiopians to buy those villas – wow. I also went to 6-killo akababi, I found another two villas both with 2.5million birr range. I also went to Access and other agencies almost the prices are ski rocketing for condos and villas everything is high cost. I ask one of the Access sales person why? Why the prices are not reflect the reality on the ground. First, not too many of our people are affording to buy one unless there is a miracle with their financial income to buy a house with this price tag. Second, with this much cost what kind of services you get from the government I mean the infrastructures – water, electricity (street lighting), sewerage, near by schools, shopping, transportation, and health clinic and so on. Third, why there is no price control system by the government so that not all area has similar facilities. At least the prices should reflect the average population income and earnings instead of few individuals who works directly or indirectly with the current government (balegezewoch). Not only house sale, everything from taxi rate to a hotel rate. Everyone wants your money as if you collect that hard earning money from the ground. I mean guys let us be real. Let sometime talk about those issues. It is real few individuals are destroying our country for the sake of their short gain and satisfaction. It looks like the prices are designed to target rich foreigners not for hard working Ethiopians. Hope one day we can get a government who can evaluate the housing price tags into reality – to be affordable to all Ethiopians and live in peace with their family.

07/14/12 @ 10:40
Comment from: mesfin [Visitor]
mesfin

The consumer is responsible for all the scams on itself. As to me:
1. Do not pay a peny in advance for money thirsty thugs who are aspiring to establish real estate firm using your money but not theirs.

2.Do not trust habesha news paper & radio adds but into make any payments remotely from the US–Rather commit your time & money to travel to Ethiopia (if u have papers) to witness what’s in the ground.

3. Last but not least, identify your priorities; if u r permanently living in the US, do not invest in uncertain markets of Ethiopia where you own the bricks & stones but not the land

07/14/12 @ 11:00
Comment from: tebelaw [Visitor]
tebelaw

The other real estae company you should be very careful is COUNTRY CLUB DEVELOPPERS or CCD. 5 years after I have paid my money, I am still waiting for the house to be delivered. THE WORST DECISION I HAVE EVER MADE WAS BUYING FROM THIS COMPANY. The owner’s name is Dr messele. Dont trust this guy. Dont invest your money in this company. I have cried for the last 4 years and still am because there is nothing I can do. They have ruined my life, my plan and my future. Please if there is any one out there that has been betrayed by this particular company, come out and write about them.

07/14/12 @ 12:38
Comment from: werner2010 [Visitor]
werner2010

@Tes,
this is not unique to the Ethiopian market. Right now Spanish real estate situation is dire, because many developers are short of cash. You may have all the information in the world, but you may fail to see the most obvious pitfall ahead, because greed clouds the mind. You should be very careful whereever you desire to invest your hard earned money. If you believed a tale that you become a billionair overnight and lost everything you owened, then you have noone to blame but yourself.
Besides, why buy a home in Ethiopia, if you are not living in it?

07/14/12 @ 12:52
Comment from: gebremekontaw [Member]  
gebremekontaw

The corruption and Bureaucracy is terrible. Also the new land rule makes it a horrible experience. Why does one throw his money in an unsettled place?

07/14/12 @ 12:56
Comment from: Amhara Princess [Visitor]
Amhara Princess

Oh, the ever delusional, La La land house prices in Addis Ababa! Thank God I never have to buy a house there, most of our family properties were bought way too long ago, renewed, refreshed and rebuilt from scratch in recent years & it is there for TPLF looters hoovering, salivating around it all. Funny thing is they keep knocking our doors & offering millions, sometimes beyond belief & my parents declined flat out. What surprises me is that our family houses for example are NOT in any way worth quarter of the money they offer us, in one case astronomical figure, way above & beyond the house’s worth. My parents are too sharp to realize, this is about CONTROL and would never sell anything to anybody & I advise others do the same. It is about principles not money.

For those who are trying to buy houses in Addis/Ethiopia, as Mesfin above said brilliantly, be cautious, you get yourself there, and see what you are getting yourselves into. Do NOT trust anybody, don’t put down any deposit or give your money in advance without all the necessary precaution to anybody.

As for me, even if my parents did not own properties in Ethiopia, I would NEVER waste a penny buying a house for over inflated, unrealistic prices when I know the house is NOT even worth quarter of the asking price. Especially in Addis, they are comedians! Most of the properties in my neighborhoods for example are multimillion & above worth, however, in REAL terms, they are NOT worth it none what so ever. They used to be fairly reasonably priced and all of a sudden the same houses became astronomical? For what? I say PURE control and to OUTprice people out of the area! Crazy Housing market of looters. People be ware of shark real estates often functioning under close gaze of TPLFs.

They have gone beyond their usual silliness asking sky high prices for some shabby homes & Condos? Who on earth wants to live in those horrible condos anyway?

07/14/12 @ 13:24
Comment from: TONY [Visitor]
TONY

I have bought a house From 2 companies 5 years ago. Berta and Country club develpers. one is no better than the other. I am still waiting for my house to be delivered from CCD. Greatest mistake I have ever made. The problem is not only the companies, its the government. I really do not understand when the government is going to step in. These real estate developers are scaring potential future investors to Ethiopia. Most of these future home owners wants to return to Ethiopia to invest or retire bringing dollars that our country very much needs.

07/14/12 @ 13:32
Comment from: Tesssema [Visitor]
Tesssema

Thank you so much for great information for the buying public. i strongly believe the buyer should be responsible for their fate. If you do your home work there is still great opportunity in finding and buying a home in addis. the problem with diaspora is people just go and buy beacuse their friends or relatives bought. they just copy others without doing research on their own,

As for Access i always found their gimmik too good to be true. sounds like good usa used car salesmen. very good at attracting emotional buyers.

07/14/12 @ 13:36
Comment from: Gantufi gadhe [Visitor]
Gantufi gadhe

We, me and my wife bought a small well
fenced old mud stucco house about nine
years ago. Since we were family issues at the time, both of us were not able to do the transactions ourselves.Instead of us relatives made the purchases for us. The property was transfered from distance relative who did the transactions to my wife’s younger brother we afforded to literaly are raising who was 15 years old via mutual agreements among us, till we arrive in Addis Ababa. When we made such travel, the boy we raised run away refusing to do the peaceful transfers all family members swore on. Here we are in littigation for last 4 years, costing us 10 times what we invested into buying in the first place. The nightmares are concoted by ungrateful, Ethiopian boy we educated, literally raised from nothing.
If one intends to buy real estate in Ethiopia, never trust the young generation, that is an athiests who could cause you griefs of your life.

We are hurt buy our trusting, caring
attitudes, toward the kniving, robber we fed. Hope the court would see facts for it is supported by evidances on the table, we will gain our shack back, to rebuild into livable home some day.

07/14/12 @ 13:54
Comment from: balebet [Visitor]
balebet

I just received a house I bought from Country Club a while ago. What an experience. I dont even wish it to my enemy. I had to literaly stop my work to follow up the construction for six months. I lived in my first house that I bought from AYAT, another usless real estate, that made it traveling to CCD eazy. My advice to people is NOT TO BUY ANY HOUSE FROM REAL ESTATES IN ETHIOPIA until the government investigate and come up with a solution or send theses SCUM BAGS to KALITI.

07/14/12 @ 14:29
Comment from: lion [Member]  
lion

This is very good article and informative to most of Ethiopian that one way or another engaged in real estate business. It is no jok real estate in Ethiopia has been the most complex and troubling for the last two decades. Corruption, lie, deception and all kind of dishonesty by everyone got interest in business. The writter puts it nicely, the authorities came up with better system at too late for most. You should be very careful not give away your hard earning money. Most of us whol live in democratic western world did not bring our money easy rather years paintaking, so we get fouled easy traped by our own citizens in Ethiopia. These people are much more clever and know how the system works way better than most us, we should take extra careful on making such big decision. When we go into the homeland Ethiopia, we should enjoy socializing with family and friend rather than getting into business we have no idea how it works. Anyone can tell you that making profit is simple in Ethiopia if you invest, but not always true. The government does not control on day to day people’s business, not even real estates like access or other big shark companies. Most likely you will end up in court for something and the justice system there is not efficient and the lawyers will run your money, the middle men think he can make things happen and run your money, after all you don’t know if the Judge is being influenced by the big companies. My suggestion is that if you want to buy a house, make sure to have leas with the government and then start build yourself, not only will save lots of money but make your family proud. Spend good amount of time there at least six month and see for yourself every equipment purchased. Now these days there is better equipment in the market to last the house longer such as non metal pipes use to transport water inside the house. Fianlly don’t just blam the government for every little things that go wrong. These corrupt individuals are money greed citizen and you are responsible for any decision you make so make good one.

07/14/12 @ 14:31
Comment from: Tebelaw [Visitor]
Tebelaw

Whatever you do, dont buy a house from COUNTRY CLUB DEELOPERS located in LEGETAFO next to Ropack!!! DONT!!! YOU WILL LIVE TO REGRET IT!
DONT! DONT!

07/14/12 @ 14:48
Comment from: nesanet ethiopia [Member]  
nesanet ethiopia

During the reign of HIM, the Italiens were the architects and contractors. They gave the workers on the job training,who built sold homes that are still standing today, worth millions. When the calamities came upon us i.e. when the derg took power,the Italiens left,every activity in the real estate sector came to a stand still. When woyane came to power, the old professionals were either dead or reteird and the new generation had no skills. With this being the Eth. reality, real estate developers emerged and offerd homes with beatufully looking computer designed homes and the people grabbed this “opportunity". One problem they overlooked is the fact that there are no skilled humanpower to translate the architets design into realty.

07/14/12 @ 15:29
Comment from: ayan [Visitor]
ayan

THE HOUSING MARKET DEVELOPERS AND REGULATORS OF THE MARKET ARE CORRUPT GREEDY SCAMS.THE GOVERMENT TRIED AND FAILED CORRECTING IT BECAUSE LIKE A CANCER IT STARTED WITHIN AND STILL SPREADING.

07/14/12 @ 15:32
Comment from: Fekadu [Visitor]
Fekadu

Tadios,
very well done, not baized in any way, what a wonderful article.
Could you please report on land owner ship in Ethiopia? I still could not imagine myself building a villa on the land that I do not own. What do I pass for my children? the structure of the villa?

07/14/12 @ 15:38
Comment from: Belay [Visitor]
Belay

i personally dont know how people in a country where corruption is the order of the day trust another abesha and invest their hard earned money, even today after watching others being screwed they still haven’t learn.

07/14/12 @ 16:52
Comment from: gon [Visitor]
gon

I PAID 50% OF TOTAL PRICE TO BUY C ONDO FROM ENYI REAL ESTAT LITTLE OVER 2 YEARS AGO THEY WERE SUPOSE TO DELEVER FINISH HOUSE WITH IN 2 YEARS TIME SO FAR THEY ARE BUILDING ONLY FOUNDATION WORK AND GRADE BEAM REINFORCEMENT GOD KNOWS WHEN THEY ARE GOING TO HAND OVER FINISH HOUSE FOR ME EVERY TIME I CALL THEM TO UPDATE ME THEY GET MAD AND DESRESPECTFULL I WANT TO HEAR ANY RESPOND FROM GENERAL MANAGER THE CURRENT SITUTION ON THIS WEB SITE

07/14/12 @ 18:14
Comment from: Ash [Visitor]
Ash

I don’t care about crooked real estate developer…. Try paying 100 % inadvence here in America and u will  Face the same experience instead I try to suggest how we can improve the existing system..

Since most us build house as investment or rental unit…I will give an simple exmple how rental unit system work so we can implement the same idea to real estate.

Late say we looking to rent our home because we work and live in America so we want our home to generate income for us a good idea.. We hire middle man to find us a renter… At this time the renter give us 6 month rent and we give him our home the problem start after 6 month the renter refused to pay us and refuse to evacuate our home… Now we go to court… The court take 10 years and cost u more money, time,grief   

Look were did we go wrong here?  We didn’t pay any tax no our rental income or we reduce our income so that to avoid paying full tax… Then again even if u pay nothing will have help u to recover ur money or to kick out the renter 

Now the solution u would not be happy camper if the government kick out the renter with in 3 months for not paying rent…  U will be happy to pay tax if the government work for their tax… Otherwise collecting tax only doesn’t cut it.

The fun part the renter also get equal right as renter he doesn’t have to pay 6 month rent.. One of the renter right..

Now u might think the renter keep on refusing 3 months rent and do it again all over again.

To solve this problem just like driving license government keep recorded of tenant file..renter and tenant singe lease agreement Infront of government official and all rent money paid by bank.. Every one get their cut this way..

As u can see the renter trying to avoid tax and up in problem….the goverment also they just collect tax with out working for it.

now late come back to compacted real estate issue… No one should sing conterct with out 3 rd party.. This 3 rd. could be goverment officale and bank… Conterct singing cost can be covered by house buyer   The price must be right  late say 10,000 birr.. This 10,000 birr look like high but if u save a lot of grief.. Beside the goverment promise to help u to force the conterct.. Another advantage of paying high rate of service charge the goverment can set up one department to deal only real estate conterct enforcement and by law.

Once we singed Infront of goverment official one can not lie or change the conterct later… The conterct will be enforced to the later… For example u appointed ur brother to buy home..ur own brother later can’t it is his property… Because the goverment have original document we don’t have to go to court to stalled our difference… Just car ownership record 

Bank roll here life sever… Late say we buy one million birr house the developer want  250,000 birr to start building u deposit 250,000 birr in closed account… If any monthly payment u will deposit the. Only to the bank closed account  getting interst

The real estate guy can brrow  money against the money u deposited… Now the fun part the bank give him visa card limit 250,000 birr… No cash value if he want buy cement he can use his visa cared but it will not allow him if he try to buy expinise gold ring which is nothing to do with house building… U guys might think he need cash money to pay his workers… That too the bank can Handel them if he have  ten worker he pay them1000 birr month the bank pay directly to worker monthly instead of giving money for developer… Even CEO of developer can be paid monthly late say 10,000 birr the ban can give him personal card loaded 10,000 birr.. U see every thing have order this way..

I will write more if any one think what I say make sense… If not I wii not bother u with another write up

 

07/14/12 @ 19:52
Comment from: Gemech [Visitor]
Gemech

Thank you for this informative and well written article. I have no intention of buying a house in Ethiopia as I have my grand parents corrugated iron roof mud hut in the country side. that but I found the article and the comments that followed really interesting and useful. This is an example of a fine piece of journalistic work. One that informs and leads to sensible discussions. Thanks to all.

07/14/12 @ 21:04
Comment from: C'est moi senait [Visitor]
C'est moi senait

Fandya bet hula! I rather live in the enchet gojo my employer oxfam built for me back home(not home anymore though).

07/14/12 @ 21:59
Comment from: Zorba [Visitor]
Zorba

Very good article that is constructive and educational for those of us who don’t want to talk about politics all the time. We need to have this kind of discussion to prevent from scammers who are making tons of money without accountability. The administration should protect it’s citizens and diaspora investors by implementing rules and regulations. Here are few things I will propose

1: The Government should implement a law to to improve the standard of building to better protect new home buyers and hold builders more accountable.

2: The government should create a web site specifically for home builder companies. Anyone who purchase a house or condo should be able to log in and comment on their experience for everyone to see. And the Government will give them rating based on buyers comment and satisfaction. This will give future buyers more awareness and will make builders afraid as their future sale depends on it.

3:Buyers need to know they will be protected by the government when making what can be the biggest purchase of their lives.There should be provisions for false and misleading advertising.

4: Here in the Western countries, deposit for new houses are backed by the government to increase confidence into investing.If builders are not done by the time set on the contract, buyers should be able to get their money back and void their contract. If not, government should intervene.

5. Increase maximum fines and penalties for any violations.

These are just few ideas. There are tons of things that could be done to protect home buyers.

07/15/12 @ 00:12
Comment from: mess [Visitor]
mess

I think most habesh never learn, those who naturalized citizen once moved back, pay the price in the 90th, and left for good back to there adapted country. The article has well stated and the commented also express their view. I am a natural citizen of this great nation and keep my hard earned money here to pass it to my children where they belongs. For those who chose to settle back to their native country, do so you wish. And give up your naturalization of this great nation you take advantage because your self center and greed. LOL!

07/15/12 @ 02:12
Comment from: Ash [Visitor]
Ash

Dear Zorba,
U have good point but from the above artical I understand government is the problem they take forever to do simple task..

Second running government have cost saying the government protecting us doesn’t help who is going to cover this. Running cost?

I think the investors must cover this cost I say 10,000 birr each for singing counteract… Even 20,000 birr is look like afair price if the government do what u say in our input…

If the government return ur money if the house did nt delver on time u will not pay 10,000 birr to save ur self all kind of grief?

07/15/12 @ 05:27
Comment from: Emebet [Visitor]
Emebet

At first, I thought this is just another propaganda piece by diaspora activist, then came this beautiful well researched unbiased information but a little too late for my liking…because most of us have already been damaged beyond repair that there are still some of us who haven’t recovered from the pain and the suffering the lawless Ethiopia caused us….I am still psychologically struggling to cope with what has happened to me but I know a close friend who has lost all his family and his mental health as a result of the day light robbery in Ethiopia…people think the business people in Ethiopia and the authorities are separate entities but our expensive lesson thought us otherwise..let alone the judges whose salary and life style doesn’t match, there is no lawyer(tebeqa) you can trust in Ethiopia because they don’t only represent the victim but the accused at the same time through their extended chain..my fellow Ethiopians, there is so much I want to say in details about my experience with Ayat, Access and the system in general but I am getting too emotional and I just want to warn you to please be careful..Ethiopia has become a land of fat hyenas! እባካችሁ ተጠንቀቁ, ራስን እና ሃገርን በመጥቀም ስም በጂብ እንዳትበሉ.

07/15/12 @ 06:11
Comment from: Emebet [Visitor]
Emebet

Nazret, If you really care about the well-being of Ethiopians please, please, please put this article on top and in bold, so that people will get to notice it…please please, you will be sparing a lot of Ethiopian grief!

07/15/12 @ 06:24
Comment from: girma [Visitor]
girma

I agree with most comments. Indeed, we need such article which is close to reality. It feels like you are watching a real documentary when some of you talks about your own experience with several of those so called real estate agencies in Addis. Many times our valuable time is waste on useless political issues. We need such article to share our bad and good experiences such as this one and other similar social issues. Many people can be benefited from exchanging of different ideas and experiences with Ethiopian real estate business. It can also help our community to learn from mistakes that happened to a fellow Ethiopian or Ethiopiawit. As one person above suggested let Nazzert take a lead and create a link auto we page where people can go and share issues regarding this article. Perhaps, as Kuku suggested better to divide the issue into different sections like house prices, locations, infrastructures, real estate agencies and their history, land ownership, tax, protection, and so on. May be many expertise in this field can educate us more about several hidden issues regards house sale and buy in Ethiopia. Having said all this, my experience with the Ethiopian private and real estate agencies is a total disaster. Another good point I read above was about pushing people out of their heritage site by offering them unbelievable value for their house. I have seen such experience in Northern Gondar where people with Tigeregna speakers are offering the Amharas unbelievable price for their house and land. Recently I heard from a sister of my friend that she is moving from her place to Gonder city because she got an offer of 100,000k birr for her land and mud house. In reality her house and land would have been worth a fraction of the above amount, probably around 5-10K or less. Therefore, our people coast to coast must stay vigilance for the real deal. The real deal is to push them out of the site, control the land and afterwards no one will not claim that this area is belongs to theirs. In reality Wayanne got all government land free of cost and now it is enjoying the land by selling it piece by piece to anyone who comes with higher bid. They don’t care about the hard working Ethiopians whether they afford a house or not. Folks, enough is enough we need to stop this disease at least by not involve in real estate business in Ethiopia until the dust settles down.

07/15/12 @ 07:02
Comment from: tadoes [Member]  
tadoes

Thank you all for the comments and feedback on the article.

I would very much like to hear from people like Emebet above who have got the direct personal experience of pain as a result of buying a home from a real estate company in Addis Ababa/Ethiopia. Whether it’s delays, price increases, poor building quality or indeed any other issues, it is worth talking about so others can be spared the mistakes.

Email your experiences to : tadeos.anteneh@yahoo.com

07/15/12 @ 07:43
Comment from: Ash [Visitor]
Ash

Dear trades ante eh, what is ur solution? Dont buy hose? Is that is our solution… Lesson I also building house it take me five years.. I am not dealing with real estate but private builder when price of cement reach 500 birr I will not expect him to delver my house with old price I am faire guy and I increased my price… It is not the developer mistake price increase..I have solution for this problem but first think frist those real estate are the first generation if u look any county when they start the face the some problem an example u can see is in beginning. Of Internet many individual register big company name and own com name and the big company have to pay those individual big money to recover their name…America history is full of wild west story…

So don’t panick our real estate industry going to be okay…yes there is problem but nothing we cant fix… A big mouth like u nothing to lose can destroy the industry if we are not careful… U don’t have to maination the name of real estate if ur intonation we to educate the public… I check access real estate This company was very amusing company when no body think about saling water to Ethiopian he make it happened but the government instead of thanking him they demand 20 million in tax for creating employment any how this company now joining billion dollar company from Dubai my question the timing of this writer… Why now? Agin this company and other have problem but nothing we can fix beside the play the game following the existing rule hence nothing harm done

07/15/12 @ 08:19
Comment from: Dallas [Visitor]
Dallas

mesfin,

Mr. I know it all, who needs your advice? Has it ever occurred or crossed you immature mind, this might be just mere isolated incident? Your opinion does not discourage those Diasporas who are returning home and investing on something that worth investing; in this case buying a dream home in their home land. Tell me, what do you have to invest in your home country? Or at least, do you have anything positive to say? I am sure, you do not have anything to say or do.

07/15/12 @ 08:37
Comment from: Dallas [Visitor]
Dallas

werner2010,
Great comment. Like you said, this is not unique to the Ethiopian market only. Why buy if you do not live in it?

07/15/12 @ 09:13
Comment from: Guta [Visitor]
Guta

Thanks a lot Tadeos. Very usefull and unbiased information. I have had to deal with Access Real estate through their office in Virginia. I almost fell for their ploy. But through carefull review of their website and some insider blog sites, I desided to pull plug on investing with them. This happened three months ago…there is one very `funny` (legal tric) claim they make…they tell you “the project starts within three months from the day of signing"…this is the same info they give to every one who tries to buy house from them. Mind you, another potential home buyer comes two/three month after my signing, and they will tell him/her, “the project starts within three months..” its the same exact project, mind you…if they were to be in America they would have been in jail long time ago. They are running ponzy scheme. They collect hard earned Birr/Dollar/Euros from unsuspecting home buyers and divert the money to run their other cash strapped businesses; and they are doing this in plain site and the government is not making any effort to stop them other than a slap in the face (banning Ermiyas Amelga (the CEO of access real estate) from banking business). I did write to Nazret.com admin to to do some investigating on Access real estate. Thanks for posting this usefull article that shines some level of lighting in the very dark real estate market. Please Tadeos post it in multiple sites and write or expose more. I will do my part distributing this article, from posting it in my facebook page to distributing it through my e-mail group. Please everyone who reads this distribute it in any way you can. The government also ought to be though on such illegal activities,.. unless they are part of it.

07/15/12 @ 11:18
Comment from: tadoes [Member]  
tadoes

Dear Guta,

Many thanks for sharing your personal experience with Access. Yes you have said it right real estate firms routinely give customers dates of when they expect work to start but they do so knowing they will almost certainly miss that date. It’s what they do to maximise their sales.

They speak of success in a short span of time but in reality that success is not measured by what they have achieved in living up to the agreements they have entered with their customers. Rather it is measured by how many home buyers they have collected deposits and interest payments from. That really is it.

It is standard practice for real estate companies to sign up buyers and collect hefty deposits before they have even been allocated land. Their army of salesmen and women (many of them unsalaried commission agents) tell you that obtaining a construction permit and getting the building design is a quick process that can be done before your signature has dried up thereby misleading you into thinking that you will see the ground work starting in no time. This is of course a myth as many buyers’ experiences can show.

I would say you have done the wise thing by not falling for the trick. Glad you have been saved the agony of having to chase up your own money having wilfully handed it over in good faith because many have done exactly that to their cost.

Do please spread the word as you say by posting the link on your facebook and other social media.

It’s in our collective interest to get the housing market working right for all and if we can share our knowledge and experiences on this matter , we can do just that.

Thanks again.

07/15/12 @ 12:38
Comment from: Ash [Visitor]
Ash

Dear Tadeos,

U guys why are u investing in Ethiopia in the first place? I thought every one boycotting Ethiopia..

Second what is ur solution Don’t buy house…by not buying house we kill two brid in one stone.. What do u think?

Buy the way how pay u to write this? The timing is worrying me.. Assess is flying high joining dubi company… U must be send by someone to destroy assess otherwise American company will not deliver house on time…

07/15/12 @ 13:13
Comment from: Tebelaw [Visitor]
Tebelaw

Dear Tadeos,

Your article is informative but doesnt mention anything about two major court cases going on between home buyers and two real estate developpers. One of them being COUNTRY CLUB DEVELOPPERS( located in legatfo not far from Ayat).Two articles were even writen in addis fortune weekly news papers. I bought a house with 2 million birr about four years ago from Country Club. Since then they made all the buyers pay extra money ranging from 100000 to half a million outside the contract and only manage to deliver 50 houses. Why concentrating on acces real estate when there are others who are worse.

07/15/12 @ 14:55
Comment from: Emebet [Visitor]
Emebet

Dear Tadeos,
I may have to be careful not to give to much info in case it affects the hopeless but kind of on going legal battle with a particular rear-estate agent..I and couple of my friends are some of the the hundreds of buyers who invested on the infamous skeleton shopping mall that has been rotting in all sort of weather for over 5 years…the promise time was two years and due to personal circumstances,(basically lack of trust worthy representative) we chose to pay full price instead of the installment which was based on different stages of progress..It has now been over 4 years in my case since I signed the contract and my shock came when I on my last visit decided to see the unit I paid for..guise what, they have in fact sold the one I paid for and my unit has by some magic moved from the front row to the back row, to the most undesired part of the building, where the price should have been far less than what i have paid for…mind you, that is besides the fact that they have kept us waiting for nearly 5 years and there is still no sign of it coming any time soon…even worse when I confronted the situation they were very quick to bluntly say,"it might have been a mistake and they are happy to give me a full refund"..mind you, a full refund after 5 years and at least couple of major currency devaluations…oh men…I can’t go on any more..this was just the beginning of the whole saga that led me to find out the whole rotten system that extends all the way to the so called jusstice system…there is just no justice in Ethiopia, it is a land of tyranny where the big fish eat small fish….Some times I blame my self for poor risk assessment but I often in this case wonder who overlooks what is happening in the city and how they never wonder why a skeleton building of that magnitude stands unfinished for many years and the consequence it will have in terms of health safety even if and when it is finished..I mean what do they do other than ocasionaly coming up with a control-freak law?…I don’t know men, I have tried to move on but your article is drawing me back to the whole painful experience..I really don’t wish this on my worst enemy. I am the only one who knows how hard I worked to earn my money and when I think of those con men in suits in Ayat office ordering tea every 15 minuets my heart bleeds!

07/15/12 @ 17:25
Comment from: Debretsion [Visitor]
Debretsion

A very important issue. A group of Diaspora Ethiopians and some friends living in Ethiopia who have bought real estate houses and flats from ARE are considering ways of dealing with the delay the company has caused and the moral damage. I am pretty confident that we are close to coming up with a measure that makes ARE regret it fishy mode of operation.

07/15/12 @ 17:29
Comment from: Shewarega [Visitor]
Shewarega

This is a very informative article. But if you think buying a house is a nightmare, think again. Selling one is even worse. One new law after another trying to minimize whatever the sellers get has gotten to a point few are selling anymore. There is one clause in this infamous new law that states you can recieve only the value of the house, as Land belongs to the State, i.e. Meles/Sebhat occupiers. You can not sell at a price that seller and buyer agree upon as before. Since most Ethiopians are buyers and not sellers, this is a treacherous fact that has dawned only upon a tiny group of Ethiopians. For the buyers, I warn you, don’t only worry about how much, or how long it takes for you to recieve your house/condo, think what you will be allowed to get when you sell it in the future.

Amhara Princess,

Your parents are brave not to sell. But as long as this suffocating occupation by the Ethiopia haters continues it will not stand for long. The key to it all is the land. One Communist regime took the land by force, and another Communist regime has kept it exactly where it is. Hence, thousands have been thrown out of their homes where they have lived for generations just because these same scumbugs you mentioned want to do x,y, and z with the land. I know a lady 92 years old, who comes from a prominent family. She was with the patriots of Abebe Aregay during the Italian occupation, two of her sons were killed by Derg fighting in Wello/Shewa. She has seen it all. She had six houses, Derg took five. Now Weyanae took the last one as the area is in the center, and they were salivating for it, as you mentioned. She lives in the States, in a nursing home. Her hatred for them is beyond belief. She said, the only thing that keeps her alive is to see the end of Meles,lol. From all I am hearing, I think she might get her wish. She also mentioned, when Derg killed my kids, I cried in the one house they left me. This one made me homeless. Ayieeeee Woyanae, you have no clue what is waiting for you, for your kids, you have no clue. A Rwandan Tutsi will fair much better.

07/15/12 @ 17:56
Comment from: zenebe [Visitor]
zenebe

Tebelaw,
oh well perhaps he isn’t aware of the case of CCD. How about you tell readers here insight into the case ? Can you leave the link here ? What about the other major court case ? Which company is involved and what’s the case ?
This is supposed to be a dialogue and experience sharing. Let’s swap ideas and experiences. Thats the whole point.

07/15/12 @ 18:04
Comment from: C'est moi senait [Visitor]
C'est moi senait

Waning

Weyannes are using my name to comment their beggar trashes? Like the above one a chiggaram weyann cadre.

07/15/12 @ 19:01
Comment from: Behailu [Visitor]  
Behailu

Dear Tadioes,
It is a nice article.I like the way you put z reality.i don’t think the problem is with the real estate developers but rather with the government.There are lots of things that we should appreciate being done but not denying the facts.we are not creating new thing construction and real estate business has been in this world long way back.At least possible to copy and modify how it has been handled in z other world(since our technology reach limits direct copy).But what i have seen in different timings in issuing proclamations is it is deliberate to make laws with loop holes .before any one understands the law some people(the law makers benefit from it) and then it gets corrected by the time u understand it but still with another loop hole.
The other problem influencing the market in Ethiopia is price escalation.i don’t think you anyone can predict our economy how it goes with any approaches.I work in the construction sector and i have the chance to closely see prices of major items almost on a daily base.For nothing when you wake up from sleep on a day project cost might have increased more than 30%.(my experience)
sometimes i can not be sure how much it would cost me for my lunch tomorrow though i eat in z same place same meal for a long time.(from 6 birr to 26)
in a country where a system does not work by-itself who do you blame for failures but the governors. just to blame, blame me,or anyone
But it is about governance.
finally i appreciate the writer and everyone commenting cause it is a good culture to comment each other and discuss in a peaceful way which most of our leaders do not have.

07/15/12 @ 19:53
Comment from: Daniel [Visitor]
Daniel

Another compelling reason one should not invest in Ethiopian real estate is the longterm consequence of establishing ownership; some of the land the houses are built on is illegally taken from the legitimate owners by two successive governments - one with nationalization and the other with outright theft.

These legitimate owners will keep their deeds until they can go to a real court to reclaim their property - and there is no statute of limitations for cases of private ownership; Cubans in United States will one day go back and reclaim their private property when the Communist government fail. You got the picture.

Tell everyone to keep their old land deeds from Haile Sellasie era.

Finally investing in house where you don’t own the land is an oxymoron altogether. There is no excuse in not understanding a very fundamental rule of law - unless otherwise one wishes to profit from outright illegality or can’t control ones greed.

07/15/12 @ 23:01
Comment from: Ash [Visitor]
Ash

Dear tedeos

I know u try to avoid me… But I have very good question that demand answer from u… What is ur solution? If u don’t answer this simple question by default I assume u wAnt us not to buy house in Ethiopia.

Dear all, I feel ur pain but what is ur solution? Closing down ayat and asses is the answer? Please please don’t rush for killing..

What ever u guys exorcise is a growing pain.. As nation we have to pass this stage… To solve this problem we need to pass same law and enforces it late us talk about this part we know there is a problem we get that what is the solution please some one tell me.

07/16/12 @ 06:12
Comment from: Aweis [Visitor]
Aweis

IMPORTANT:

Do not buy a house that is not 100% completed. It has to be ready. Pay the cash AND get the keys at the same time.

There are many houses available in every region in Ethiopia.

Do not trust any developer that claims they will build a house in whatever time.

I know what I am talking about.

07/16/12 @ 10:16
Comment from: tadoes [Member]  
tadoes

Ash

Please read again the last 3 paragraphs of the article for answers to your questions. No one is saying don’t invest on a home in your country but that there are a number of problems you could find yourself trapped in if you don’t take care. No silver bullet as they say in English. Hence, do what you want to do but watch out there are some very obvious problems to be aware of before throwing your money away. In the end it is your responsibility what you want to do and how you want to do it.
But don’t try to gloss over real issues here by saying ’so what it happens everywhere’ because frankly you don’t want to be the one caught up in these troubles. There are things buyers can do to get the market working right for both themselves and the sellers too. That is all I am saying. If you want to buy something as big as a house, it is best you give it a good thought , find out as much as you can about the deal you going into and the background of the companies your dealing with and all the rest of it. By doing that you have reduced your chances of risking your investment and time as well as helping the market work better as your research means you are less likely to end up dealing with some of the bad players in the housing market.
Now you may not agree but that is my answer to your questions. I hope you like it.
Good to hear your comments and questions though.
Thank you.

07/16/12 @ 10:25
Comment from: Favioli [Visitor]
Favioli

For the first time ever an issue on which all are one, ha ha ! What a miracle! Then again it is an issue close to everyone’s heart, except to Cést Moi, the warrior queen’s, who seems totally disinterested. Why, warrior queen?? Anyway it is, tragically an aspect of life on which the cursed Woyanne seems to unabashedly exercise its excessive greed and voracious appetite for looting and fleecing every citizen (be it local or diasporas) who dare start business or buys property. I know of some friends who took the trouble to buy a house or even build one on a leased piece of ground. A friend from New York got his house (7 km from Kotebe, (Orormo kelel, another planet) after 6 years and finally paying twice the agreed price; I was there when he took delivery of it after intense litigation and a lot of grey hair on his almost bald pate. He is still busy refurbishing it. Another one from Iowa had the gut to build two apartments (condos) and a “villa”, paying almost thrice the initial price and a near nervous breakdown, while he doesn’t even live there nor has any intension!! I could go on but you all know such cases. “How much would that cost?“, I asked a cousin of mine pointing to a rather small stand-alone house (in Bole Bulbula or one of those areas). “Not much, about 2 or 2 and half million bir, why”, he answered with a glean of pride in his eyes and puzzlement at my foolish inquiry. I looked surprised and he gazed back at me dejectedly as if saying “how naïve!, do you want it for free??” He didn’t say it but I knew he was thinking that way. Visitor Werner is quite right, why waste your money and time in one of the most hideously corrupt land (and people too) if you don’t live there? Beside I can’t imagine how anyone can manage to live there after a long stay be it in US or Europe?

Amhara Princess, my dear sister, how are you?. You have been spared this misery others have bitterly experienced. Keep it that way, and hope Woyane won’t snatch it either (as they did, indirectly, to my aunt near Bole) by brute force (decree) or some flimsy excuse. The shameless greed and appetite for plunder of these brutes of peasant stock, who have known nothing but abject poverty knows no limit. Remember the Derg hoddams and thugs and what they brought on this land and what sort of a generation and mentality / culture they left us with???
As for those so-called criminal construction “companies” Bertha etc etc, I implore our warrior queen Cést Moi to put her never-ending threat (gura) into practice by hanging them, not at Meskal Square (for we celebrate the Founding of the Cross, Meskal, Damera) there, but at Merkato or Sekotta market place, which incidentally I have reserved for ..know what I mean?? , but can rescind my decision if you meet my demands, agree??? Then again, can one possibly hang a whole people, even though almost all and sundry in that land is infected with this almost incurable culture of banditry, greed, lie, laziness, parasitism and so many other things you may wish to add to the list…???
Cheers.

07/16/12 @ 10:52
Comment from: Ash [Visitor]
Ash

Solution person:-

Dear Emebet:-

I try to answer ur  from legal point of u. Even so I am not a lawyer. 

The developer want to return a full refund Without regarded currency devaluation and market price after 5 years.

Answer:-

U said u paid full price of the house that means u own the house… It doesn’t matter u paid 100,000 birr or one birr u own the house if finished house worth  400,000 birr u should get that amout.

U have strong case u didn’t lawn the money to developer but u invest in house hence it is open and close case.

Then again the law also protect the devoploer as much as it protect u. Hence it is not in ur best interst the devoploer become  insolvent then u lose ur money therefore it is not in ur best interest to bed mouth the developer.

Second no law prevent u from renegotiate ur contract… At that time u might be in ur best interest to increase base amout to 200,000 birr to allow the developer to cover for price increase and currency devaluation fair is fair u will get ur house 200,000 birr instead of 400,000 birr much better then peaople who never invested in first place.
 

Behailu :- wonndering

."For nothing when you wake up from sleep on a day project cost might have increased more than 30%”

Solution :-

U sing a contract with developer when cement price was 200 birr…suddenly  the price jump to 500 birr. The question what the devoploer to do? Nothing can stop him from renegotiate the contract u might say No to the new pricing…the problem saying no to new pricing the developer become insolvent and u might lose everything…in shot u have the right to demand the old price if every one dose that the developer become insolvent and every one lose every thing…so it is in best interest of the buyer to keep the developer afoot..

Solution 2:-

How u can avoid price hike in the fries place…

Late say the developer need 1000 kg cement but all he can afforded is to buy 100 kg at time..the problem is u don’t know tomorrow cement price..

The solution is the developer goes to band with ur contract… The bank give him money to buy 1000 kg at today price.

Solution 3:-

Establated developer bank… Same process the devoploer goes to developer bank and show the contract the developer bank buy and store 1000 cement the price locked at today price.. In this case the developer doesn’t need to buy 1000 kg at one time or store  cement all he have to do is go to developer bank withdraw what ever cement he like up to 1000 kg… The developer bank charge him serive charge hence the name developer BAK.

To those People with open minded 

I say dont kill the hen laying golden egg!

Ayat and Assess are not same as the CEO…legally assess is a person legally created.. That means the CEO of Assess are two individual one created by law.

The good example is Ethiopia.. At time of Mangstiu every ten km there was check point that means u can pass more the one kg coffee. They will search u and take any thing above legal limit.. At Mangstiu time citizen required working permit in their own county.. The sad thing Mangstiu stop giving work permit hence everyone, illegal in our own country.

Saying that doesn’t mean Ethiopia is bed…the leader is bed when u replace Mangstiu with Meles Ethiopia become hot bed for investors.. My point is it is replacing Ayat CEO with  another CEO will improve the problem but if we think Ayat and CEO is the same thing and killed Ayat we will be the loser..

This like killing Ethiopian Airlines because few of u lost ur luggage…yes u can fire the CEO of EAL and get another one and still have EAL..  

07/16/12 @ 11:39
Comment from: Sam I Am [Visitor]
Sam I Am

THANK YOU NAZRET.COM
About time you put up an article worth reading. It touches every politcal and financial stripes. It actually unites every Ethiopian in every corner of the world who share the same dream. The dream of returning home one day either to have a place to call our own or a place to retire after we raise our kids in all corners of the globe.
Nazretoch, like I mentioned before for the first time in a while you put an article that is not only an exellent read, it is very well informative very well balanced and researched if I may add. Even more information came out of the comments that followed it. Be it a persnoal experince of Mr. Gantuf Gdehe and on the mark suggestions of Mr./Ms. Zobera and so on. With minimum politcal outburst and name calling that turns many of us off.
Nazretoch this tells you, there are many things that bring us together while we celabrate our unique diffetences. There are many other social and econmical issues that can be written about through your good writers and can discussed by us as bloggers. These, not only brings more everyday Ethiopians who don’t necessarily want to read about politics and bickering that follows it, it also encourages us to swap usefull information through your site. After all that’s what I think NAZRET.COM is striving for.

Good Work Nazret.com and of course Todeos Anteneh.

07/16/12 @ 15:32
Comment from: C'est moi senait [Visitor]
C'est moi senait

Ok. Now I have listen to all of you **morons,idiots, smarts,and losers **

Who said life is fair? Every morning you wake up the only person you must be true is yourself in a deepest sense,and no longer listen to anyone else.
What you guys went through I can specifically categorise them. Malingering and Fraud are related but distinct that they share crucial elements but contain critical differences. Fraud is a purely legal concept while malingering is related concept with
a medical context . The weyannes hoddams real state
business habit does not requires a miracle medicine diagnoses
but a specially treatment from my arm . We will gather them all
and drop them an active volcano which is as simple as it is
and no cost and no trace to be find. The best active volcano is
in Afar region and they all get a good treatment there.

We all have come so far in life and the journey through Our life was not an easy task that any body live on it. I can say I
have test a bit of life in a short time. Life is some thing we get
it for free and it is a challenge to our body and what we are
and what we will be.

We all pay a price sooner or later. Some of you already have
paid years of hard worked and earned money to these
parasites chiggarams weyannes and their Hoddams supporters.

07/16/12 @ 20:16
Comment from: Mesfin [Visitor]
Mesfin

It is very interesting article.
I stay away from the developer. I had a land with small property on it when I left Addis. I have to come and invest in the country I immigrated first. After I established with my wife we decide to build a house as an investment by designing our own design and hiring one of my brothers as a project manager and it went well everything was completed in 14 months.
Advice from my experience:
- Buy a house with small property on it and redesign your dream home.
- Send money in a peace meal method as you see the work progress.
- Find a trusted person back home to complete this task.
- Investing your money in Ethiopia has better return than in western banks with almost 0% interest rate.

07/16/12 @ 22:12
Comment from: TA [Visitor]
TA

I am one of the victim of real estate scam. It was Gift real estate, which ripped me off my money. If there is any one, who read this article and ripped off your money by this ” real estate developer” please contact me at birutesfa3000@yahoo.com

07/16/12 @ 22:19
Comment from: Dagna [Visitor]
Dagna

First the Ethiopian real estate is waybeyond even for heave dreamers.
even god will shy, about its cost.
who is buing this houses from the middle class families who are living in Ethiopia? what is the official salary of an ethiopian parlament member. The countries police cheif, a medical doctor, school principal or a minister of public office for that mater? the answer is none of them can afford even a tenth the current housing cost in any part of Ethiopia.
But only thievs, public fund robers, illigal land sellers for corrupt for None Ethiopian nationals and criminals who are never erarned their money by legall means and ofcours by greedy diasporas mostly moral corurpts and their reale state agents.
A single bungelow dweling in Addis Ababa shouldnt cost more than “US$5000″

07/16/12 @ 22:57
Comment from: samson [Visitor]
samson

can anyone with commonsense explain to me how in the world will purchase a home that you only own the brick ,but not the land???

07/16/12 @ 23:43
Comment from: Tebelaw [Visitor]
07/17/12 @ 02:50
Comment from: Guest [Visitor]
Guest

Comment from: Nesanet Ethiopia [Visitor]
During the reign of HIM, the Italiens were the architects and contractors. They gave the workers on the job training,who built sold homes that are still standing today, worth millions. When the calamities came upon us i.e. when the derg took power,the Italiens left,every activity in the real estate sector came to a stand still. When woyane came to power, the old professionals were either dead or reteird and the new generation had no skills. With this being the Eth. reality, real estate developers emerged and offerd homes with beatufully looking computer designed homes and the people grabbed this “opportunity". One problem they overlooked is the fact that there are no skilled humanpower to translate the architets design into realty.
07/14/12 @ 15:29
———————————–

Thank you Netsanet!!!!!!!!!!!!!!
you hit the nail in the head! I am yet to see a construction done by Ethiopian firms that resembles the draft/architectural design.
As a matter fact I really dislike the new designs and choice of colors. I much prefer the older home designs built during Haileselasse.

07/17/12 @ 05:10
Comment from: Ash [Visitor]
Ash

Dear Tedeos:-

Thanks, for ur reply understand u have a good intonation… Mangstiu also have a good intonation when
 he kill spice merchants for hoarding spice and artificially create shortage hence profiting from price hick.
At that time the fede up public supported him hopping the price will drop. 

 To Ethiopian American:-

Don’t act like insolent party… U guys claim I lost ur hard earn money… In the first place If u want the real estate to follow the rule 
By the book..u guys also follow the rule for starter u jump the ship 30 years ago thinking  Ethiopia have no hope…late me give example late say..

U are a sailor and ur ship is in fire instead of staying fighting the fire u jump the ship to safety while the rest of them risking 
Their life to save the ship… Once they successful u want to came back act like captain of the ship.

U see must Ethio- America got 12 grade education before they left Ethiopia…that means Ethiopia tax payer pay for ur Education..
But u never pay back instead when Ethiopia need u most u run away and u chane ur citizenship…late go one more did u pay tax
To Ethiopia for the last 30 years ? The American living abroad pay two tax one local government on for USA government..

U should be greatful for Ethiopia allowing u to come back and invest without asking u work permit ( grean card) most of u who get 
University level education u have to pay ur  student loan and there is no statute of limitations for student loan 

Forget all this u were not a models citizen u guy were anti Ethiopia for most of 30 years now u want invest( I mean most of u)
Now gang up to destroy one of Ethiopian business Success story. Yes I admit there is million problem with the industry 

But this late take ayat the are the first real estate..who start this boom…assess with in 3 years they become
One of the player.. Tedeos try to tale me I should do my research to find an honest real estate is like some one telling me
destroying IPad Apple  and telling me to get another company smart phone like black Barry…

Last when they hang   jesus Christ the people had a good intonation and public support..but I wish my hand 
From sin u all going to commit…

07/17/12 @ 06:07
Comment from: kuku [Visitor]
kuku

Ash,
You better shut up. I don’t think you know what you are talking about. I followed your response to this novel article but your comments are jumping here and there without solid information about the article. It seems you may be one of those people who are benefiting from the real scam of housing business. Listen, leave the people alone. Let the information run through the pipe like a drinking water. No one asks you to open the water tap. Let the people who are thirty of such information drink from it. In short, do not interfere we are only exchanging information regards this vital subject.

07/17/12 @ 08:02
Comment from: C'est moi senait [Visitor]
C'est moi senait

Ash

Enjoy the looting while you have a few inches to live. I will be the one who hunt you and ppl. Like you and smoke you all the way you using cave when the time comes. No mercy, no human right,no UN etc will save your weyannes azzzxss. Meskel sq. Will be a place where we hung you all like a rat.you and your parasites weyannes bsiness will not have any place in our pure and true Ethiopia way.

07/17/12 @ 09:06
Comment from: Ash [Visitor]
Ash

 Dear Dagna,
U ask
 Why  real estate is waybeyond even for heave dreamers.
Answer:-
When Mangustiu nationalized rental property in fact he stop people from building house.. Now when u stop building for next 30 years the back log create shortage hence the price increase.
2 nd
Even the existing house luck of maintainse so depleted to point of not fit to a living coroner. No proper sewage system etc etc..
In shots the whole 80 million   Ethiopian people need proper housing unlike NY the housing market around in 100,000 per year then Ethiopian market where 80 million people need proper housing
3rd 
unlike NY in Ethiopia to build house beside cement u import 98% of item is drive the price
4th
I myself I don’t like the house costing one million birr… But if u are sallers U would nt mind…one of the advantage of price hick is it attract a lot of invested and innovative company to join
5 th
So what the price is high… What are u going to do…are u going to implement price control? If the market say this house worth one
Million birr and u find market for it then who I am to tell u house in Ny is cheaper..
6th
One of the reason house costly is the lease… U pay a lot of money for the land u don’t own the land cost or lease will add to finial price of the house
7 th u ask 
“What  is the official salary of an ethiopian parlament member. The countries police cheif, a medical doctor, school principal or a minister of public office for that mater? the answer is none of them can afford even a tenth the current housing cost in any part of Ethiopia. 
But only thievs, public fund robers, illigal land sellers for corrupt for None Ethiopian nationals and criminals who are never erarned their money by legall means and ofcours by greedy diasporas mostly moral corurpts and their reale state agents.
A single bungelow dweling in Addis Ababa shouldnt cost more than “US$5000″”

Answer

U see if u don’t want minister of public officer etc etc to be corrupt then u have to pay them their market value..

In Ethiopia we are okay paying singer for one cd 200,000 birr but we want our public officer to run billion birr project for 3000 birr. For example what is the salary of ayat CEo he is running billion birr company and making 100 million biir per year but his salary might be in. 5,000 birr…this low salary invite corruption if not corruption inefficiencies..

The  CEO doent care if the customer happy or not instead he work against customer interest in order to maximized self interest. Hence firing The old CEO willnt help the new CEO soon or later will march to the same tune.. Therefore we Ethiopian must start paying a real money if u want real work.

 kuku and senait 

pls read my inupt to understand what i am trying to say… Late say an American and Ethiopian both lost their luggage..u know the Ethiopia will say I will not fly EAL because the lost my luggage.. And tell every one not to fly EAL.
On the other Han the American will say fire the CEO of American Air because they lost my luggage..

The America know the different. Between air America and the guy who run Air America…both are individual person different from each other
Both have equal right the only different is one is legally created person never less a person hence different from each other.

Beside American can afford to kill air America because they a lot of the in our case we have only EAL we can’t afforded to lose our single airlines..the same with our real estate.. We have very few of them we can’t afford to lose the hence fire the CEo for not doing a good job I agree with.

But changing  CEO with other CEO willnt help with out paying them their worth which is million birr per year 

07/17/12 @ 10:47
Comment from: C'est moi senait [Visitor]
C'est moi senait

Ash.

Do n’t you even get it you kimmalam weyaane. What are trying here ? To compare your rootless weyannis business and the USA.? You come up with all sorts of ex. Comparably and try to lecture us what is going on in Ethiopia. You kimmalam weyanne will be buried deep down closer to hill. Trust me I will not hesitate to push you from that active volcano my self.

07/17/12 @ 14:01
Comment from: Ash [Visitor]
Ash

Dear senait,

Do u like my example? Late me give u one more late say we have 3 car accidents.. In all case the Japanese car is involved.. Now as police chief are u going to ban Japanese made car or the drank driver who cause the accident? U can take away driving license etc etc…the accident has nothing to do the car made in Japan.

The same logic apple here Ayta, or Accesse the company is different then the CEO hence ban the CEO fire the CEO or jail the CEO but Ayta or Accesse the co. Must go on with another CEO.

I don’t know how hard is this to understand
Another guy even want us to build our house… Why stop there how about producing all the food we are eatting why stop there make all our cloth even plant the cotton..

We try to build a community this guy talking building one house? U don’t need swimming pool? U don’t need road? U don’t need recaraction center? How in hell u going to build all this if every one build his house how about sawrage system are we going to dig own own..

Besides when every one hire individual labour government doesn’t get tax…
When developer build 100 house they get scale discount hence they pass the saving to their customer

07/17/12 @ 15:26
Comment from: Amhara Princess [Visitor]
Amhara Princess

@ Shewarega

Great to have you back dear. I understand what you mean. The way things are going, these worse kind TPLFs can say, no more home ownership or Government has rights to confiscate whatever home it likes. They might as well say that because they are going around people’s hoses near Tele Medihaniallem area telling residents, if they can’t afford to build multistory buildings on their spot, they need to relocate else where! Can you believe that? How many people can afford to demolish their already beautifully structured villas to replace it with some super expensive building they neither want to live in NOR afford to build. That is like day light robbery, saying you are sitting on beautiful land, we need the land & have the money to build whatever. I heard overwhelming majority of residents ignored the authorities and hired lawyers :):) As if that makes a difference! Ena Beka Tefatewal for nearly 2 years now. However, recently, TPLFs are getting impatient, irritated and have threatened further saying if residents refuse to take up the offers i.e. relocate to certain areas or build multistory homes then they would lose everything, their house & the potential place offered by TPLFs elsewhere! I heard couple of residents sold and moved away while the rest like almost everybody is there, still fighting against the offer & refused to build something they cant afford or want. What a mess!

@ Favioli

Hello! I am doing fabulous, thanks for asking. Hope you are too. Where have you been hiding Mr trouble? Where did your friend Romeo disappear to? I was enjoying his post in French a little too much :) Nice to have you back my dear!

07/19/12 @ 14:37
Comment from: selam [Visitor]
selam

Very interesting article and discussion. thanks to all
for sharing their experience. I bought a small apg from Sunshine 5 years ao and I. am renting it out and pay my remaining 30 % loan. Talking to friends at the time, I was a bit confused. For me to invest 2.5 million was not only impossible at that time but as some readers said above, I could have bought a very nice house in Denver, with good return. When Access was bombarding us with its ads few years ago, I was almost at the verge of investing and buying apartment in center if addis. When I visited their office in Addis, I was impressed with the work their sales agents way of explaining and their customer service. The only thing that held me back from continuing with the purchase was the fact thar I have to pay the full amount in advance in $$$$. I have two close friends who still don’t knoe how to get their $$ back. We really have to look into where we are investing and paying 100% in advance should. be banned officially. As someone said above full payment if they give you the key at the spot.

07/21/12 @ 06:45

rebtel

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