Housing and You…When is the right time to start building?

Jun 01, 2014 News

---

By Leonard Gildarie

Last week I had cause to visit Tuschen Housing Scheme, a relatively new community not far from Parika, East Bank Essequibo. Impressive. I loved the way the roads were laid out and the streets were even better than some of the residential areas in the city. It is a vibrant scheme that speaks of a modern setting but has still retained some of that country feel. However, it was the kind of homes there that struck me the most.
I have been to places like Bel Air, Republic Park and Eccles where the tree-lined streets stood out. But Tuschen would be a place to watch in the coming years. The homes were some of the most attractive I have seen.

I have seen reluctance from folks when talking about the possibilities of living on the West Demerara. Their immediate concerns, of course, included the Demerara Harbour Bridge.
My friends on the East Bank would probably disagree with me over this, but that is cool. I do believe that West Demerara is a really beautiful place to live, perhaps one of the best in the country. There are a couple of reasons for this. The area has that truly country feel that immediately hits you once the Harbour Bridge has been crossed.
Tuschen, Zeelugt, La Parafaite Harmonie have all been developing at a rapid pace, with entrepreneurs taking the opportunities that came as a result.
There have been success stories, too. One man in La Parafaite, my community, has made it big. He started off making concrete blocks. He started delivering. Today, he has the biggest hardware business in the entire community. He has maintained the core business of the blocks.
But to allay some of the fears of persons who dread the Demerara Harbour Bridge. I leave a little late in the day for Kaieteur News…most days around 10:00hrs. The drive takes about 12 minutes. In the evening, it is really relaxing also.
The East Bank, because of linkages to Linden, the Timehri airport and the hinterland, is indeed a place to live. But the traffic has been a killer. That will not improve any time soon. It does not matter how many roads are being built. The coming of another Demerara River crossing is bound to make the West Demerara even more attractive.
While at Tuschen, the sight of several bicycles chained to the entrance bridge caught my eye. I turned back and took a photo. A teen sitting nearby explained that persons working in the city would leave the bicycles there in the morning and pick them up in the evening. He asked whether that could have happened in the city. Enough said on that.
I got a call from a bank supervisor on Friday. She is suffering. She was given a piece of land at Zeelugt. She applied for a mortgage and started building. Today, her home is completed but she is still to move in. The reasons are simple. There are no lights and water. In the meantime, her home has been broken into. She is also paying a rent where she lives.
We have examined this issue on more than one occasion. The ideal scenario is that Government would establish the housing schemes with the utilities in place. Proper planning, using models that are in keeping with that of the developed countries, dictate that the policy makers facilitate employment right in the area. This means maybe an industrial or commercial zone. It means that the burden of having to travel to the city would be reduced. The spin-offs from that, of course, include less traffic on the road and less burden on Georgetown.
The reality is that Government, because of demand for housing, has been releasing the lots without the utilities fully in place. The contracts for roads, drains and utilities, are issued only later.
Diamond was a classic example. I recalled, while living at a relative’s home in that area, having to wait on the rains. There was no electricity. The pipes were down to a trickle, having to share water that was coming from the Grove well. My relative had an inverter system that provided the power. Not many families in the area could have afforded that.
The battery, every three days, had to be lugged to the Grove area to be charged. I recalled on more than one occasion where the system had to be hooked up to the car to pump water to the tank. It was a tough life.
Today, Diamond speaks for itself. It is the biggest scheme. A commercial area is being planned next to Diamond now. I do think, however, that the roads could have been a bit wider.
Which brings me to an interesting conversation I heard a few days ago. A friend of mine went to her boss. She wants his financial assistance in building. Her lot is in Herstelling, East Bank Demerara. However, there is no light or water as yet. The streets are already in.
Her boss flatly told her no. The reason, he explained, were simple. If you are taking monies from a bank, you are expected to start repaying within a few months. There is a cost in applying for a mortgage. It would be better to wait until the infrastructure is in place before construction is started, he advised the staffer. The cost of living in the new home would be high because it may involve buying water. Then there is the issue of security. It may not be such a good idea to have the home all alone, in the middle of nowhere.
This coupled with the fact that the bank would still demand its mortgage payments are reasons enough to hold off on construction. Her employer was of the opinion that it may be better to rent a home, save some money, and wait a few months. Never mind that costs can go up. I have my thoughts on this.
A reader, based on our column of the sale of a property last year, asked that I find out what percentage of the profit will have to go to GRA for tax. If you are selling a property and you made $100,000 in profits, the amount would be $20,000. In other words, it is 20% of what you make that goes to the taxman.
I indeed had several calls from the real estate folks last week, offering to sell my property. This was after I complained of the attitude of a few agents. Several offers have come in. Looking forward for more.
Enjoy your weekend, folks, and do continue to send those comments to [email protected] or call me on 225-8491 or 682-1256.

---

---