Building your home? Think again! (Part 10)

May 01, 2011 News

What can six million dollars do?

By Leonard Gildarie

As expected, our article last Sunday elicited a number of criticisms, especially from electrical contractors, some of whom claimed that it was an unfair attack and only a minor fraction of those operating in the industry have not “righted” themselves.
The harsh reality is that the housing industry, which is one of the most vibrant and the fastest growing, is in sore need of more monitoring. Just listen to the complaints of persons who are now building and some contractors who claimed that they were the victims.
From the point of licensing of contractors, both building and electrical, to ensuring that hardware stores supply quality materials, to even having the local NDCs enforce laws that require neighbours to weed their yards, the situation is crying for attention.
Next door to where I live in La Parfaite Harmonie, West Bank Demerara, there are two empty lots. Someone came a few months ago and cleared one plot. The bushes have started growing back at a rapid rate. It is almost ironic how fast, because our flower plants are taking a beating for some odd reason and are withering.
On the other side of the land, we have never seen anybody visiting. The bushes are now towering above the fence. Last week, we saw a giant salamander sliding from that lot, heading to our yard. I am not going to talk about the mosquitoes which the bushes help to harbour.
In every new housing scheme, home owners will be complaining about this. The Housing Ministry is moving to repossess some of the lands which are being illegally sold and not being built on. Recently, the Housing Minister said that they are considering buying equipment to help clear these bushy lands. The costs will be borne by the land owner.
With quite a number of these housing schemes in boom across the country, the monitoring is a challenge. The point is that Guyana can ill-afford not to do anything. And the challenges are enormous. So to the few electrical “contractors” who are not licensed, my humble suggestion is to probably approach the Prime Minister’s office in Kingston, as there are reportedly classes being offered to fix this problem.
This week, as we move closer to regrettably bringing the curtains down on what has been an enlightening experience for me, especially, there is a need to address two questions raised recently.
One was by a fellow journalist and the other in an email to us.
The journalist wanted to know what kind of a home six million dollars ($6M) can build.
That question had me taken aback for awhile. In a nutshell, the answer is simple, you can with prudent management make it go a long way. As a matter of fact, people by their very nature will make do with what they have, and things will work out once there is a steady income. For some it may take longer, naturally.
That $6M sum is a quite a hefty one for many. It would be a tight finish for a two-storey home, complete with toilet and kitchen fixtures, plumbing and painting. If you are including a ceiling, electricity, concrete yard and fencing, yes it would be tight.
The question has raised a very relevant issue. If you are a struggling working class person with limited financing, it would be a good idea to build simple and then improve on it. It is like taking your own sweet time “pimping” your car with a new paint job, then a DVD screen and music set.
Your home, as we have been stressing over the last nine articles, is a huge investment. Invariably, a new homeowner will regret something. It is normal.
The experts have advised that you can cut your costs by reducing the amount of money spent on fixtures. These include expensive door locks, faucets and lights. These can be upgraded later. It would be more difficult, I must admit, to put a plywood ceiling and then look to upgrade to PVC later on. It can be costly.
In the area of lighting, it may be a good idea, if you are cash-strapped, to run the wires and install the basic lights. The chandeliers and other wall lights will come at a later time.
If you are building a two-storey home, and again the cash is tight, maybe you can leave the downstairs open until the money starts coming in again.
The actual structure can run up to over $3M, minus the downstairs being enclosed. It is “smaller” things that tend to cost the money. For example, a ceiling, electricity, windows, doors, cupboards (maybe), sink (kitchen and bathroom), faucets, gutters, pipes and its connections, and door locks.
The money will go up if you want the aluminum sash windows and the more expensive arch ones.
Concentrate, as they say, on finishing the upstairs then you can fix the bottom. It is a good idea to move in quickly as costs tend to mount the longer one takes. This is especially if you are living far away and have to travel to the building site.
In short, if you are building and have to make hard choices to ensure the money suffices, cut the expensive stuff out. These include maybe going to louvres, instead of the more expensive aluminum frame ones.
Recently, one houselot applicant who was successful in her bid, wanted to know how to buy a home that was on the market, not far away.
Well, the banks are not too enthusiastic about using an empty lot as collateral. So we can strike that possibility out. The requirements for a mortgage for a property are almost the same as if one is building a home from scratch.
You would need photos of the building, showing front and side views with the lot number clearly visible. This is the main difference from a mortgage that has to do with constructing a new building, in which the bank would require a photograph of the land in question with the lot number visible.
The bank or lending institution would also be requiring a copy of the transport, title or lease; dimensions of the land and building; a copy of the agreement of sale; proof of the source of income; passport size photos of the applicant and copies of ID cards.
The process for a mortgage to buy a property, can take up to six weeks, banking officials say.
The lesson for this article, folks, is to think smart. Your home is not running away. It will be there for years to come. Every month, every year, a little can be done.
As they say, “wan wan dutty build dam”.