Estate Agents are Unregulated in Tanzania

Well that is Dar and its wooes! The comforting thing is that a new law to regulate estate agency practice is in the offing. What I however do not seem to understand is the fact that the Draft Bill on Estate Agency was ready way back in 2008, and was fully funded by BEST, but it is yet to be law. Similarly there was another bill prepared at around the same time, the Valuation Bill and nothing has come out. Both Bills were drafted under the auspices of Ministry of Lands and there were heated debates on some of the clauses between the government officials and the stakeholdeers.

Am practising professional in the fields of real estate, and I am yet to come to a residential property being leased at $16,000pm. But rents of between 2-6,000 are common, and may I just sound this- it is not the Expatriates alone who are the consumers of this expensive housing, indeed they are Tanzanians , Black Tzs Yes! They are those who make direct cash purchase of apartments or pay upfront up to $200,000. Hii ndiyo BONGO nchi yetu! Hata siielewi when I cannot afford $500 for my housing needs
 
Ndugu yangu alinitafutia plot fulani huko huko Bunju, akakubaliana na muuzaji kuwa jumla iwe Shs 50,000,000. Sasa mimi katika kumtumia pesa nilikwama kidogo kwa vile niliambiwa kutuma $50,000 kwa mkupuo kama remittance kwa ndugu ilikuwa haikubaliki kisheria. Banker akanishauri namna ya kufanya na process yote ikawa imechelewa kama kama siku kumi hivi. Katika muda huo wa kusubiri malipo, yule muuzaji akagundua kuwa yule ndugu yangu alikuwa ansubiri pesa zile kutoka nje; hilo likawa kosa. Ghafla bei ikabadilika na kuwa $80,000, yaani currency ikabadilika na hesabu pia ikabadilika papo kwa papo. Tuliachana na yule muuzaji moja kwa moja ingawa baadeya alipungza bei lakini hatukumwanini tena: anaweza kukuuzia plot aliyokwisha uza kwa mwingine
 

But mkuu, udhani kwamba the question of professionalism ni muhimu sana ikiwa ni pamoja na professional ethics and codes of conduct kwenye hii biashara ya real estate?
 

What happened then?
 

Nakumbuka waandishi wa habari walikuwa wakimuuliza mara kwa mara aliyekuwa Askofu mkuu msaidizi wa jimbo kuu la DSM, Methodius Kilaini, kwamba kwanini mapadri wasiruhusiwe tu kuoa kwani wengi wana watoto mitaani na wanatembea hadi na wake za watu?

Unajua aliwajibu vipi?
Alisema 90% ya wanandoa wanacheat! Sasa je, kanisa lihalalishe watu watoke nje ya ndoa zao?

Ninachotakakuzungumzia hapa ni kwamba, even though the regulators are not doing what they are supposed to do, lakini atleast hata hicho kidogo kinachofanyika tuwapongeze. Wanaosafiri kwenda Moshi na Arusha wakati wa X-Mas na mwaka mpya watakubaliana nami kwamba safari hii SUMATRA ilifanya kazi!

So, nisiandike mengi, but we still need regulators in real estate agency work and it is undeniably high TIME NOW


U said it MKUU, nakubaliana na wewe kabisa!
 

Kwani ni wizara gani hasa au ofisi gani inahusika na kuwadhibiti Madalali?
Ni kero kubwa saaana kwa sasa.
 
Ziondaughter said:
Kwani ni wizara gani hasa au ofisi gani inahusika na kuwadhibiti Madalali?
Ni kero kubwa saaana kwa sasa.
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Ni Wizara ya ardhi mkuu, lakini pia kuna wizara ya viwanda na biashara tukiongelea Tume ya Ushindani. FCC.
 
ExpertBroker said:
But mkuu, udhani kwamba the question of professionalism ni muhimu sana ikiwa ni pamoja na professional ethics and codes of conduct kwenye hii biashara ya real estate?
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Sir, a capitalist is an amoral individual. The moral and ethical codes are only limited by a persons greediness and level of satisfaction. As a profession and a career man you should aim for money. Na, it seems huko hela hipo currently enjoy while it last. However if your so concerned with the level of this out of proportion housing prices, then you should turn your self, into our very own 'Donald Trump' jenga nyingi huza kwa urahisi utaua market in some places lakini sidhani hiyo mitaa ya Oysterbay kuelekea kunduchi kama itaweza shuka sana form now onwards. Imesha attract the affluent of our social hivyo demand will always be there huko. Kumbuka umuwekei mtu bunduki anunue, bali ananunua for through his own will. Therefore whats not ethical about that. Your other option is to fight corruption, ngoja nikupe mfano ambao ni wa kweli. Mimi niko huku mbali, lakini kuna watu huku tayari wameshakubaliwa mikopo ya Nyumba mpaka $200, 000 sawa if im honest imebidi wapeleke makaratasi yao ya makazini hili mkopo upite. Lakini nyumba hawajatafuta bado. Sasa huyu akienda kujenga hata kule kipawa nyumba ya $40,000 ina maana benki watai-value hiyo nyumba thamani hiyo na akishindwa kulipa deni lake la laki mbili watachofanya ni kuchukua hiyo nyumba 40,000 na biashara inaishia hapo. jamaa anapeta na 160,000 kwa mambo mengine yake ya kimaisha. Ndio maana nikasema we sasa hapo ufanye nini, its not your problem kama hela hipo na ndio maana hizo bei za ajabu zinatoka. Hiwe ni ufisadi wa benki, wizi wa serikali au hata biashara halali cha muhimu hela hipo ndio sababu ya hizi bei kuna market hapa. Ndio maana nikakuambia kuna mtu baadae hatakula hasara hapa ni serikali kuibiwa sana na waajiriwa wake na benki kutoa irresponsible lending as a result ni hiyo pricing. Now what can you do fight ufisadi at the same time its up to you if you want to make money or fight the system. How are they to regulate that now apart from the government doing its job. Ndio maana nasema if the government ikiweza punguza the level of corruption na ikichunguza faida za benki kama kweli zipo. Au ndio zinatupa hela zikijua watapata bail out kama wakiishiwa kugawa ovyo. Mpaka hapo hizo bei i dont know kama zitashuka unless government hii set pricing sasa this is not good for capitalism what if people can really afford those prices legitimately. Hivyo uache hela kisa unaona the price is unethical kima-isha labda we bado socialists. PS sorry inter button yangu imekufa hivyo nimeshindwa kuweka paragraphs.
 
Juma Contena said:
Sir, a capitalist is an amoral individual. The moral and ethical codes are only limited by a persons greediness and level of satisfaction. As a profession and a career man you should aim for money.
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Mimi nafikiri bado hatujaelewana!


Please be informed that we now have the Unit Titles Act which recognizes vertical ownership in that if developers opt for apartment buildings, the supply will have impact on selling price!


In this case, the employer is the guarantor/job security. Banks are very smart when it comes to loan advancement.


My friend, banks will only advance money to buy/build a home if a detailed valuation report is presented by a qualified/registered Valuer appointed by the former! The Valuer will therefore determine a MARKET VALUE and not a MARKET PRICE of which you are dwelling a lot on it in your arguments!

There is a difference betwen MARKET VALUE and MARKET PRICE:


Valuation companies generally should have access to census data for the particular area as well as the statistics regarding local home sales for the city, region, country, etc where the property is located. These Valuation companies will also have the ability to research the previous sales as well as the tax records of the property. Having access to these records affords the valuation company the ability to acquire all the facts pertaining to the property and consequently to present a clear value of the property. Getting a thorough valuation offers many advantages to the parties concerned!

It is important to distinguish between Market Value and Price. A price obtained for a specific property under a specific transaction may or may not represent that property's market value: special considerations may have been present, such as a special relationship between the buyer and the seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged.

Another possibility is that a special buyer may have been willing to pay a premium over and above the market value, if his subjective valuation of the property (its investment value for him) was higher than the Market Value.

An example of this would be the owner of a neighbouring property who, by combining his own property with the subject property, could thereby obtain economies-of-scale.

Such situations often arise in corporate finance, as for example when a merger or acquisition is concluded at a price which is higher than the value represented by the price of the underlying stock.
It is the task of the property valuer to judge whether a specific price obtained under a specific transaction is indicative of Market Value.




Juma Contena said:
Hivyo uache hela kisa unaona the price is unethical kima-isha labda we bado socialists. PS sorry inter button yangu imekufa hivyo nimeshindwa kuweka paragraphs.
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Suala sio kuacha pesa, suala ni sisi professionals kushindwa ku-practise due to the confused environment, hata kama hela ipo!
 


With the estate agency work being regulated, it will be easier to get the data, nevertheless, you can not do away with imperfections in real estate market!

 
Three years ago, I attended one of the stakeholders meeting which was supposed to review the Bill which one of us has hinted here. There were guys from UCLAS, Ministry of Lands, AG's Office and the organisers (BEST Prog, something like that).There was also a representative from "Madalali". I remember we spent the whole day trying to reach the consensus on who will be deemed to be, or rather who will fit the best definition of "Real Esatate Agen". To some, they thought that the minimum qualification should be a graduate from UCLAS who is also a member of their body (like NBAA ilivyo). We were then reminded that 95% ya real estate agents in Dar if not TZ, wengine hata darasa la saba hawakumaliza. From there I realised that we have a very long way to go so as to formalize and regulate this sector.
ExpertBroker can enlighten us on how did they end up resolving this issue!
 


Unfortunately I was not in Dar and so could not attend that MDAHALO, but am told wizara ndio kikwazo cha hii sheria! dont know why?

Gashle said:
We were then reminded that 95% ya real estate agents in Dar if not TZ, wengine hata darasa la saba hawakumaliza. From there I realised that we have a very long way to go so as to formalize and regulate this sector.!
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Kupanga ni kuamua! Kama tunaweza kupunguza wamachinga mjini, seuze kuwabana madalali!
 
Tatizo kubwa pamoja na mengine ni utashi wa wakulu wetu. Tanzania imekuwa ni nchi ya ovyo ovyo tu. Hakuna mpangilio, hakuna utashi, hakuna kinachoeleweka. Ukienda nchi/miji ya wenzetu walau unaona hata mipango fulani ambayo kwa njia moja ama nyingine inakutia moyo kwamba watawala wanajua wanachofanya. Sisi hapa kwetu, ama hatujui maana ya kuwa na regulated sectors kwenye uchumi wetu, ama tumeamua kuunda mfumo wetu ambao hauko kwingine. Mipango miji, ovyo, kila mtu anajenga jenga tu, real estate, ovyo, wewe soma zako majuu unakuja ku compete na mtu asiekuwa na hata ile basic education kwenye udalali, usafiri (dala dala na taxi) ovyo ovyo tu, whoever anaejiskia kuanzisha muda na wakati wowote afanye hivyo.
Cha ajabu kucha mnatembelea majiji ya wenzenu huko nje, hamuoni mkajifunza?
Tubadili fikra. Tunahitaji mbadala.
 
For once Mashaka kaandika kitu kilicho fundamentally correct (no doubt anaendeleza style yake ya kuangalia kinachotokea in the west na kukioanisha na Tanzania, not exactly original but just as applicable perhaps).

Swali ninalojiuliza ni, hivi hawa investors wa kibongo ni kwa asilimia ngapi wanajenga kwa kutumia mikopo na asilimia ngapi ni hela zao wenyewe za ufisadi na sources nyingine za biashara? Kwa sababu Mashaka asije kutegemea kwamba watakuja ku crumble down siku moja washindwe kulipa madeni wakati watu washakula hela za EPA hata migorofa ikikaa na kukosa wapangaji wao wataona hawana hasara, kama wamepark hela zao tu.
Hiyo inflated price ya land inaweza kuwa maintained in the long run? Kuna wealth gani inayokuwa generated kuweza ku sustain viwanja kuuzwa kwa malaki ya dola za kimarekani? Mimi namuunga mkono kwamba bei zitashuka kutokana na wanunuzi kukosekana. Lakini simuungi mkono juu ya regulation ya estate agencies. Kama mtu aliyekaa Marekani na kuelewa principles za free market kwa kufanya kazi Wall St South, kutaka kuregulate bei za viwanja na nyumba kamwe hakutakuwa na effect ya kusaidia wananchi, badala yake kunaweza kabisa kupandisha bottom line. Tatizo moja linalokuja katika regulations ni kwamba inawezekana kabisa, kwa nia njema kabisa yak u-control unscrupulous prices serikali ikaweka standards za bei kama framework ya manunuzi, lakini ninafikiri kwamba hata hizi framework zikiwa fair kwa agents, zitakuwa zimezidi the natural price settlement na hivyo kupandisha juu the bottom line. Kama regulations zikifanya price iwe chini sana, hii itakuwa advantage kwa wananchi lakini utakuja kupata tatizo linguine kwamba watu wataacha kuuza viwanja vyao wakisubiri serikali iondoe regulations ili wapate bei nzuri zaidi.

Kwa hiyo utaona kwamba njia pekee nzuri ya kupata a reasonable price ni kuiachia market iamue, waacheni wauze kwa malaki ya madola, wakiona haviuziki watauza kwa makumi ya elfu ya madola, wakiona haviuziki watauza hata kwa maelfu ya madola kama sio mamia, kwa kutegemea na kanuni ya “location, location, location”
Hizi habari nyingine za serikali kwenda Dodoma au bandari kuhamia Tanga au Mtwara ni academic hypotheticals, besides Dar ni mji organic.Serikali imekuwa ikisema inahamia Dodoma tangu 1974, wamekuja Wa Nigeria kujifunza kuhamisha mji mkuu kwetu, wao wamemaliza mji mkuu wao uko Abuja, sie tunaendelea na longolongo zetu.Kwa hiyo hizi ni hyperboles tu.
Anavyosema kwamba “people should not believe that markets are self regulating” ananifurahisha, kwa sababu anakuwa kama anaamini kwamba Tanzania kuna a proper market, uchunguzi wake mwenyewe na data zake alizozitoa kwamba Tanzania nyumba ni ghali kuliko West Palm Beach unamsuta kwamba hapa hamna market iliyo proper ila kila kitu kiko dilapidated.Pengine wengine wanaweza kusema hii ni sababu mahsusi yak u introduce government regulation ili kucontrol mambo.Nimeonyesha juu hapo jinsi gani government regulation inavyoweza kuharibu zaidi badala ya kuweka mambo sawa, especially with these jokers we have now in governments. Wenzetu wenye markets zilizokomaa kwa centuries kadhaa na ma SEC na ma watchdog / vyombo yote wanaweza kusema tunajua tunachofanya. Sisi tunahitaji market iende organic kwa sasa kama regulations tutaiona baadaye, kwa sasa tunasusia tu kununua viwanja vya $ 100, 000 mapaka wanaelewa kwamba Shylocking is no business.

Government regulation itaturudisha kwenye vidaftari vya duka la kaya, tutaanza kuwa na vidaftari vya duka la kaya la viwanja kuona familia hii ina viwanja vingapi na vimenunuliwa mwaka gani kwa bei gani na pesa zilitoka wapi, ukomunisti kwa kifupi. Hatutaki, tulishaishi maisha hayo tukaona hayatufai.

Mashaka, haya ni mambo ya free market, wala usione kijiba kwa sababu watu wamekuzidi kidau, wewe nawe una nafasi katika free market kuanzisha a citizens movement ku boycott kununua viwanja vyenye bei ya kifisadi, ukifanya hivi nitakuelewa na kukushukuru kwani hata mie hizi bei zinanikera.Lakini ukitaka serikali iingilie na mambo ya regulations nitakuona unataka kuingilia nguvu za market.

Kama unavyofikiri kwamba kukosa regulation kunaweza kusababisha a market bubble/ burst itakayokuwa na effect kwa uchumi wetu (frankly sioni jinsi gani mtu aliyenunua kiwanja kwa sh 800,000 akishindwa kukiuza kwa $ 500, 000 leo itakuja kuleta bubble / burst) ... lakini hata ukisema kukosa regulation kunaweza kusababisha bubble/ burst mimi naweza kukwambia hizi regulations na populism za kutaka kila mtu awe na kiwanja na nyumba zinaweza kufanya bubble/ burst zaidi, kama inavyotokea Marekani.
 
ExpertBroker said:
With the estate agency work being regulated, it will be easier to get the data, nevertheless, you can not do away with imperfections in real estate market!
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Sir, Expert

Sasa unalilia regulation in the market how do you suppose they should regulate that market and what laws will help balance those prices?

On the other hand labda turudi kwenye basics first; people spend on priorities what comes first in their needs based on afford-ability(income,savings, wealth, etc).

Through this fact for example a man who earns $500 a month after other expenses (food, travel, house bills, family allowance and other obligations) you dont expect him to be given a mortage worth $200,000. I dont know about down payments huko, ambayo ni 20% huku and how he will raise that cash. How do they afford that $40,000 dollars before anything. And what will be his payback monthly on that mortage, piga hesabu za huko na matumizi ya huko kwa sababu nilizo kupa.

Ndio utakuja gundua the amount this guy is going to afford to pay back may not be more than $150-250 monthly realistic-lly (my estimate). Now how long will he be paying that mortage plus the bank interest. For many not in their life times. Ndio utakuja gundua if the risk assesments where done properly many could not afford those prices

As a result those silly prices would crash if the lenders did their homeworks. Kwa sababu wengi wasinge pata hiyo mikopo halafu unasema benk zipo responsible on lending.

Kitu kingine mfano ukienda mji kama New York (Manhattan) au London sehemu zenye post code za W1 and and sorrounding bei ni hizo hizo za ajabu. Na vile vile wanunuzi wake ni affluents people with good salaries amna sakapoko huko unless waliokua wanakaa kwenye counsil estates. Lakini utakuta similar flats else where na bei ni nafuu kidogo.

Hii inatoka na other facilities ambazo zimeambata na those prices types of jobs, schools etc, ndio sababu mtu ananunua base on that simple explanation and the example i gave you earlier afford-ability hivyo the most desired areas will be occupied by the wealthy.

Ukirudi nyumbani the market is shagla bagala si eti kwa sababu ya estate agents bali ni uchumi usiokuwa na ma experts. Huwezi ukapanga bei ya nyumba anywhere au bidhaa yeyote for that matter you let the market decide on the price. Hivyo suppliers will always test the market, response wanayopata is what is causing the soaring of prices. Jibu lako hapo ni kwamba hela watu wanapata wapi. Its one thing bei kua ya juu uzunguni, based on the fact that there is not much open land left, and has people acquire wealth they would want to move to those neighbourhoods allowing suppliers to exploit the situation. Sasa how does the supplier get the blame in this natural situation. Lakini sasa hiyo ya bongo it seems the prices are blowing out of proportion everywhere. Issue hapa is not the estate agents (suppliers) bali are people that rich hapo bongo. If so, then the market is right and if not then how do they fund these purchases. Kidogo uchangamshe akili with all the respect you go figure?????
 
Juma Contena said:
Ukirudi nyumbani the market is shagla bagala si eti kwa sababu ya estate agents bali ni uchumi usiokuwa na ma experts. Huwezi ukapanga bei ya nyumba anywhere au bidhaa yeyote for that matter you let the market decide on the price.
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As I said before, it seems we have not understood each other on our argument!

The regulator won't be there to set the price but to help determining price! With the estate agency work being regulated, it will help to have some market information which will also make Valuers' life easier!

Have you researched how estate agency it works where you are? Do you know that it is quite different with the way it is here TZ?

As narrated before, the highest price a buyer is willing to pay and the lowest price a seller is willing to a accept on a particular piece of property is what we term market price, determined by market forces(dd&ss).The logic behind here is that a Prudent buyer will not pay more for a property than the cost of acquiring a substitute property of equivalent utility.

Mwaka jana nilikuwa natafuta nyumba Mikocheni, nikampa LandLady counter offer yangu kwamba ni laki5 kwa mwezi, baadae akatokea agent mwingine akamwambia ana mteja wa dolla700. Najua hii wewe utaita market forces operation! Ukweli ni kwamba kama kungekuwa na regulations na kuna market information, huyo mpangaji wa dolla700 asingekubali kutoa. But the property market hapa Bongo is so crazy! Utakuta mnaishi kwenye apartments complex moja, wewe unalipa $1000pm mwezio $1200 au $ 1500. Kama ni suala la capitalism na market forces as you claim, mbona bei za daladala, ndege, mabasi, bia n.k, ziko sawa, other factors remaining constant! Let's dont just talk the talk!
 

Estate agents are never suppliers! It is the developers/investors who are supplying properties in the market!

Na hapa ndipo tuna-DIFFER ndugu yangu! Soko la Bongo bei zinapangwa na Madalali, of which it is not the practice in the western! Correct me if am wrong on this!
 

The problem is not (just) that people are greedy or self-interested. Greed and self-interest seem to occur pretty regularly, in my experience. The problem is that the rules under which everyone operates in real estate business do not do enough to limit and channel greed and self-interest.

I think it’s fantastic that real estate business should seek to raise ethical standards. It’s good business, and not before time. I do understand that a lot of what happening is a social phenomenon, and that a change in mores can only help.

While I agree that mankind is perfectible, as a broker, a citizen and hopefully some day a retiree, I am not willing to bet my future on it.

I don’t expect the agent to suddenly become a saint; I do expect the system to take that into account.
 
Juma Contena said:
Sir, Expert
PS Mashaka amelalama tu amna mapendekezo yeyote hapo, how to resolve that problem si ajabu akairusha attack kwa estate agents mtu mwenye akili timamu hawezi andika pumba hizo.
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Taratibu Mr. Great Thinker, ulianza vizuri, sasa unaharibu mkuu!
 
Juma Contena said:
Sir, Expert

may be is more into finance rather than economics lakini hata hile article yake ya dollarization ilikuwa pumba tupu you have to wonder what degrees he has, and what position does he hold in the organisation where he has been employed, .
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Inawezekana haumfahamu vizuri John Mashaka mkuu as you seem to meander like a river on a flood plain! Kutaka kujua who is John Mashaka, it needs a separate thread of which uki-seacrh hapa Jf utapata threads kibao about John Mashaka.

In short JM is a real patriotic! Inawezekana hujarudi kitambo hapa nchini ndio maana hujui mambo anayofanya hapa nchini japo makazi yake ni USA!

Jaribu japo kutembelea hapa chini
http://http://www.mashakafoundation.org/about.html
 
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