Estate Agents are Unregulated in Tanzania

John Mashaka said:

TANZANIA’S ARTIFICIAL HOUSING MARKET,

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John Mashaka said:

HOW LONG WILL IT HOLD - DEBATE!

In the aftermath of the Global economic meltdown, many economists and financial experts have been gripped with criticism for the failure to foretell of a disaster that came to change the way we see things economically. Vital signs and indicators that could have averted the disaster became less significant at the expense of a few men controlled by greed. Likewise, Tanzania’s housing market has every indicator that needs immediate review before the country’s economy is decimated. The up, up and up trend in the land and housing sectors are not going to reach stratosphere before they crumbles​

High rise luxury apartment buildings are snaking their way into the city skies. Already built houses and land are increasingly becoming untouchable for the poor majority as their talks are in US Dollars. Meaning, only a handful will be in position to rent, purchase land, and even build homes. ​

In my effort to invest back home, I started tracking land prices in 2007, and surprisingly enough, from Dar es salaam to Bagamoyo, very little of land is available. Most of it had been purchased years ago by a few individuals who are now selling it at shocking prices​

One of my neighbors who is a well placed high-ranking government official purchased a five-acre land in 1994 for Tsh. 800,000. The man is selling the same piece of land today for USD $500,000. A shocking price, in a country ranking as one of the poorest and least developed in the world, whose income per capita is less than $350. Many decent houses in the city charges from $1500 to $16,000 per month, far more expensive than Florida’s exclusive West Palm Beach and other wealthiest American and Canadian suburbs​

A few days ago, I happened to meet two expatriates; one an American and another one Chinese, who share two things in common, they are both renting from high ranking government officials, and both experiences a 10% annual increase on their rent. A frustrated American working for a Non-profit organisation is renting a three bedroom home in Masaki for $3,800; a price he termed to be too high for housing in a third world country, while he used to pay $1,075 for a better home in Richmond Virginia. The man is only waiting for his contract to end so he can leave, since he is basically working to pay rent in Tanzania​

Many Tanzanian’s are also faced with a similar challenge, forced to take loans just to secure decent housing for their families. United States has one of the most developed housing markets, and highest concentration of millionaires in the world, yet even modest income earners can afford to rent and own luxury apartments and homes. Top earners in the financial industry in Manhattan, are having comparatively better chances, to get better rental deals than expatriates in Tanzania​

Truth of the matter is that, these homes and apartments are being built for foreigners and wealthy people with access to foreign currency, not the working class, because very few ordinary Tanzanians can afford $400 rent a month. Tanzania’s housing market growth is defying the natural economic laws of exponential growth. Demand, Income (earning power) must, at all times be proportional to the supply in order to attain an equilibrium point.​

An assumption is that, Tanzanian housing market is free and open. The theory would then predict that market forces would control supply and demand, and thereby distribute housing in a fair and equitable manner. ​

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Is this the reality? NO. Only the wealthy have access to decent housing, unfortunately! We must be realistic with the fact that, Tanzania’s housing market is very young and disorganized. It is extremely artificial and vulnerable to withstand serious political shock, social and economic changes. Its artificial nature is not going to survive the usual economic life cycle, or the growth face of the exponential curve, before it collapses bringing down the entire economy to its knees. The housing market is ignoring the obvious economic factors that dictate housing prices; income distribution, market demand and competition, economic conditions, and government of the day’s actions and policies.​

Should the government decide to decentralize to Dodoma for instance, should the shipping hub move to Bagamoyo, Mtwara, or Tanga, should the government of the day change its tone to contain corruption, without a doubt, an economic tsunami is surely going to hit Dar’s housing market, and its ripple effect will be will be felt across the entire spectrum of national economic sphere. Not to mention the change of political winds that could potentially prune or keep away foreign expatriates who are the darlings of the housing market.​

For long term strategic security of Tanzania, which I believe our leaders and state planners have foreseen; government (administration), industrial, and maritime decentralization will similarly impact the Dar- es-salaam’s housing sector in a similar devastating fashion. People should no longer believe that markets are self regulating following how a few people in the name of free market toyed with the world economy bringing about economic bubble and desolation. There must be some kind of oversight or regulation to tame the situation from going out of hand in Tanzania, bearing in mind the obvious current signs on the wall.​

Land and Housing Authorities should explain to the public steps they have taken, or plans they have in place to contain or control these very vital sectors; so important to the country’s security and economic future from collapsing. ​

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The government cannot let “madalali” brokers with little knowledge of the housing market to dictate prices at the expense of their lust. It can’t let control of the land and housing into the hands of a few who in turn dictate the pricing on where we live and sleep. Meaning if you can’t steal or engage in corruption, decent housing becomes a dream​

In Bunju B, a land that was selling for Tsh 80 million jumped overnight to Tsh 120 million because of a “dalali” who wanted to solve his financial problems in one day. Thanks to a Somali businessman, who was able to produce the amount in cash putting to rest my offer. How many sorts of people buy land in Tanzania, builds, rents out and charges any price they want in US Dollars, as if a government does not exist​

These men (Dalalis) with no training or knowledge on how markets work must be made to justify their crazy prices, and identities of the people they represent. I would not be unfair to say that, most of the Dalalis are a big danger to the country’s national security, since they serve as conduits to illegal criminal cartels seeing Tanzania as a safe haven where you can either rent or buy land and perhaps build with ease. It must control who owns the land, to keep at bay the Squatter style housing which are rapidly cropping up in river banks due to land and housing scarcity in the city​

And if you are wondering on my assertion, ask yourself, why would someone carry Tsh. 120 million in a Range-Rover trunk? Are these some of the people controlling our housing market? My dismal assertion concludes that, if indeed our housing sector is being controlled by MAFISADIS and people carrying large sums in the trunk of their cars, then we are in for a big trouble! ​

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Not the future generation, but the current generation is yet to pay a price for this artificial housing market keeping ordinary legitimate and honest workers NON-FISADIS from buying land, and instead building on dangerous river banks.​

Mungu Ibariki Tanzania
John Mashaka
Dar-es - Salaam, Tanzania
mashaka.john@yahoo.com ​

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The Ministry should now through the same housing finance department think of preparing a bill on Estate Agent Act!

But What about Fair Competition Commission? In the UK for e.g, Estate Agency work is of special interest to the office Fair Trading!

Nakubaliana na hoja ya kuratibu shughuli ya madalali. Watu hawa waelimishwe, kuwe na mfumo wa kuwasajili na Serikali kupata kodi kutokana na shughuli zao.

ExpertBroker said:

The Ministry should now through the same housing finance department think of preparing a bill on Estate Agent Act!

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Regulation is an important key aspect in attracting more home seeker and also enable every one ability to own a house or pay rent. It is high time that we need to regulate estate agency inflated prices as well as come up with measures where monthly payment will be required as opposed to annual rent which makes the majority unable to afford rental fee. The government has done nothing and is doing nothing over a long period of time. In some instances, it is cheaper to live in Nairobi than in Dar and even cheaper to live in Kampala than any of the East African regions save for Rwanda and Burundi. Serikali ya CCM hakuna kitu inafanya kumuwezesha mwananchi wa kawaida uwezo wa ku[ata kila kitu ama chochote akitakacho kwa bei ya kawaida na kwa muda muafaka. Nashangaa watu bado wanaililia hiyo serikali ya CCM ndio matokeo yake haya. We need change in regime so that we can have such things cleared and controlled. Estate Agency Institution should be set up in each region so that whoever wants to rent anything then should check with the center where landlord's number will be available without giving out "Kitu Kidogo" to the personnel. In short we are loosing ethical values in conducting business activities.

I the government takes it serious, the Estate Agents Act will;-

>>>>Regulate the conduct of estate agents in the course of estate agency work (buying, selling and letting).


>>>>Lay down the duties that agents owe to clients (such as the passing on of offers, handling money and giving details of charges) and to third parties (such as disclosure of a personal interest).


>>> Give the Office of the relevant authority the power to issue warning or prohibition notices against those persons whom it considers to be unfit to carry on estate agency work (madalali uchwara).
Any person that receives a prohibition notice (a ‘banning order') will not be able to practise as an estate agent.

Knight frank(t)ltd mpo?

TingTing said:

Regulation is an important key aspect in attracting more home seeker and also enable every one ability to own a house or pay rent. It is high time that we need to regulate estate agency inflated prices as well as come up with measures where monthly payment will be required as opposed to annual rent which makes the majority unable to afford rental fee. The government has done nothing and is doing nothing over a long period of time. In some instances, it is cheaper to live in Nairobi than in Dar and even cheaper to live in Kampala than any of the East African regions save for Rwanda and Burundi. Serikali ya CCM hakuna kitu inafanya kumuwezesha mwananchi wa kawaida uwezo wa ku[ata kila kitu ama chochote akitakacho kwa bei ya kawaida na kwa muda muafaka. Nashangaa watu bado wanaililia hiyo serikali ya CCM ndio matokeo yake haya. We need change in regime so that we can have such things cleared and controlled. Estate Agency Institution should be set up in each region so that whoever wants to rent anything then should check with the center where landlord's number will be available without giving out "Kitu Kidogo" to the personnel. In short we are loosing ethical values in conducting business activities.

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For sure!
A good service is a post paid one!

What should one do now if she/he has a complaint about an estate agent?

There should be a professional body for one to contact if there is a complain where she/he believe the estate agent has acted contrary to their duties under legislation!

Wabunge mpo?

Incase you are still wondering about what Bwana John Mashaka is talking about
check the links below for the real picture

Local agent: House for rent, house for sale bei za hatari, halafu zote zipo in US dollars.


http://estates.tzadverts.com/search.php?type=7&&page=0&order_by=date_added&order_by_type=DESC

http://estates.tzadverts.com/search.php?type=6&&page=0&order_by=date_added&order_by_type=DESC

Jamaa amezungumzia kitu ambacho kipo lakini kama hakipo kutokana na watu kuchukulia kama kawaida.
Hii kitu imeanza kuwasumbua huko Kenya kwani jamaa kutoka Somalia wakishapata zile pesa za kuteka meli wanakuja kununua majumba na viwanja
kwa bei za juu sana ambazo wenyeji hawawezi, matokeo yake wenyeji wamekuwa ni watumwa katika nchi yao kwani hakuna wanachomiliki

With the Act, the Agent will be acting in the best interest of the Client, and that both buyers and sellers will be treated honestly, fairly and promtly.

All of our current problems in Tanzania, are a result of a sluggish or lack of leadership from our president and his government.

If our government finds it acceptable to pay U$7800 in Dar to accomodate its BOT governor without questioning its legitimacy, then you need not to question why overpricing of land and houses is a common phenomen.

Yes....ipo shida kubwa sana kny sector hii.......!

Hapa nadhani tunakosea kuwaluamu hawa estate agents. Tukumbuke kwamba Tanzania is now a capitalist society or so it is supposed to be, hivyo brokers are only putting the price that their market will pay. Si kwamba nakubaliana na hizo bei, yes hapa there is a flaw somewhere lakini the finger of blame shouldnt be pointed at the brokers or by trying to restrict the market. If people are affording to spend on these ridiculous prices then let it be. But how are they financing these purchases this is where the quary should concentrate. Im assuming for most it is the bank loans, hapa ndio investigation yenyewe au regulation yenyewe inapo hitajika. Sehemu ya kuchunguzwa ni hapo kwa kweli watu wana keep up with their payments au ndio hadithi kwa percent ngapi annually (repossesion rate). We expect two probabilities hapa, if the banks are making profits on these loans ujue the market is correct on the other hand if the bank is making loss ujue those prices are artificial. Also the bank should be blamed for causing this inflation. Remember the cause of inflation is the availability of too much money on a sector. Kwa hivyo the dealers are not to blame at all hapa. Only time will tell someone will loose in the long run my bet is the taxpayers. Hela ambayo ingetumiwa kujenga barabara baadae utaambiwa ifidie hasara za benki no wonder kila siku zinakufa.

Tatizo ni utawala mbovu.kila mtu anajifanyia atakavyo.Rushwa na ubinafsi vimezidi.

Juma [SIZE=4 said:

Contena;760312]Hapa nadhani tunakosea kuwaluamu hawa estate agents. Tukumbuke kwamba Tanzania is now a capitalist society or so it is supposed to be, hivyo brokers are only putting the price that their market will pay. [/SIZE]Si kwamba nakubaliana na hizo bei, yes hapa there is a flaw somewhere lakini the finger of blame shouldnt be pointed at the brokers or by trying to restrict the market. If people are affording to spend on these ridiculous prices then let it be. But how are they financing these purchases this is where the quary should concentrate. Im assuming for most it is the bank loans, hapa ndio investigation yenyewe au regulation yenyewe inapo hitajika. Sehemu ya kuchunguzwa ni hapo kwa kweli watu wana keep up with their payments au ndio hadithi kwa percent ngapi annually (repossesion rate). We expect two probabilities hapa, if the banks are making profits on these loans ujue the market is correct on the other hand if the bank is making loss ujue those prices are artificial. Also the bank should be blamed for causing this inflation. Remember the cause of inflation is the availability of too much money on a sector. Kwa hivyo the dealers are not to blame at all hapa. Only time will tell someone will loose in the long run my bet is the taxpayers. Hela ambayo ingetumiwa kujenga barabara baadae utaambiwa ifidie hasara za benki no wonder kila siku zinakufa.

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Mkuu, sidhani kama Tanzania kuna capitalism zaidi ya US na UK!!!!!!!!!!!!!

Lakini wenzetu wana sheria na professional regulatory bodies! Suala si kuwalumu madalali, suala ni kuwepo kwa sheria. kuwe na mfumo unaoeleweka katika property market transaction.

ExpertBroker said:

Mkuu, sidhani kama Tanzania kuna capitalism zaidi ya US na UK!!!!!!!!!!!!!

Lakini wenzetu wana sheria na professional regulatory bodies! Suala si kuwalumu madalali, suala ni kuwepo kwa sheria. kuwe na mfumo unaoeleweka katika property market transaction.

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Kitendo cha haya mambo kufanywa privately ni capitalism enough hiwe ya nchi yeyote. Yes there are regulators but more like watch dogs to ensure a fair market play ground. On most cases serikali inaacha mambo yaende yenyewe, hila wameshajifunza sasa hata wao mara nyingi recession hutokana na irresponsible money lending or spendings by the banks. Hiyo sasa ndio kesi ya Obama where do you draw the line on regulating. Kwetu sisi sidhani kama the market it self has a problem bali rushwa has a huge role on all this. First we need to solve this rushwa problem then we can fully understand the market or the real state of our economy for that matter.

Mtu yoyote anayerent for more than $5000 a month dar ni:

1.Mwizi
2.Fisadi
3.Drug dealer
4.Kiongozi wa serikali asiyejali matumizi ya serikali(kama Ndulu)
5.Terrrorist(kama hao wasomali wanaoteka meli)

Mtu yoyote anayepokea Paycheck ya aina yoyote,either from UN,US gov or multinational company,rent is ususally not supposed to exceed 30% of gross salary.we are talking of a $15000 salary,of which only CEO's are paid these salaries..,and these people are very smart not to spend 1/3 of their salaries helping an overheated housing markets!

Expatriates mnaowaongelea humu sijui wanaofanya UN,foreign companies etc,wengi wao wako kwenye thresholds za $3000-$5000 a month, so 30% is in the neighborhood of $1000-$1500.

in the west people are paid by their abilities,i do not expect the best banker barclays Bank has to offer be found in DAR!!

Nadhani tunapaswa kuwa wakweli zaidi. Hivi Tanzania kuna kitu kipo SERIOUSLY regulated? Angalia Sumatra na wenzao EWURA wanavyopata shida kusimamia sheria.
Tatizo kubwa wanaotakiwa kuwa wasimamizi ndiyo wamiliki wa kila kitu. Sheria zetu ukweli kabisa zimekosa wasimamizi.
Kinachoweza kupunguza bei ya nyumba sasa hivi Dar es Salaam ni kuetengeneza miundo mbinu katika maeneo mengine na kupima ardhi sehem nyingi zaidi na wananchi wawezeshe kukopa km hivi sasa mfumo wa mortgage ambao upo kwenye pipeline.
Dawa ni kuhakikisha wanaopandisha bei wanakosa wapangaji kwa kuongeza supply.