14/10/2018
Inasmuch as it seems that the real estate sector of the economy is growing and meeting the yearnings and demands of housing needs of ordinary citizens, a lot still has to be done especially when you consider how much it cost to acquire or build a house to shelter you and your family. Also, as a business man or woman that is engaged in the business of providing and meeting the housing needs of the generality of the people, it is pertinent to do so with little financial risk involve. A situation where interest rates to mortgage loans are in double digits when you seek for capital to build, and the duration to repay is such that will cause you to be indebted to these lending institutions even after the return of investment is yielding as expected. Ordinarily, one will begin to wonder where he/she got it wrong. The challenge could be daunting, solutions far reaching and realistically you don't seem to see any silver lining at the end of the tunnel. So, the question is, is it a wrong idea to invest in the real estate business of providing affordable housing for the people?
For the avoidance of doubt, they are many developers in the real estate sector making big impact and still recouping their investment financially but the percentage of these investors are minute. So, more investors/developers could be drawn into this circle of profit earners by application of new building systems that are more cost effective and the cost overrun manageable. So many research has been carried out to come up with alternative cheaper building materials. Acceptability of these materials by operators in the housing provision or building construction industry has to be reviewed. Absence of a localised building code in the industry is another challenge. I'm aware that efforts are being made to get one. So in the nearest future one should be available. The need to carry out more research and development in this area cannot be over-emphasised. New construction methods that reduces the scope and time of construction needs to be applied.
A lot of things still has to be done if the cost of providing affordable housing for every citizens is to be a reality, especially the high cost of land viz-a-viz the implementation of the land use act and the problem of land grabbers. These challenges are not insurmountable. With a right mindset and will power, affordable housing for the generality of the people is achievable and investors/developers in the sector will be making profits and continue to stay in business.
