Young people can own land in groups
May 11, 2009
The Demographic and Health Survey 2006 shows that 81.4% of Ugandans are under the age of 35 years. One becomes an adult at 18 years. The youth make most of the decisions regarding their future between 18 and 35 years.
Hannington Musoke
The Demographic and Health Survey 2006 shows that 81.4% of Ugandans are under the age of 35 years. One becomes an adult at 18 years. The youth make most of the decisions regarding their future between 18 and 35 years.
Today, a number of youth have resorted to renting due to lack of funds to buy and develop land. Others stay with friends and share the rent.
Real property is relatively expensive compared to the economic situations of most individuals. If we are to critically look at the offers available from the real estate dealers, the smallest unit area on sale, a 50 X 100 ft plot costs at least 4,000,000. The upper limit depends on the location. Assume I am interested in acquiring the cheapest plot with a clear title but can only save sh150,000 a month, it would take me 2.25years to raise the sh4m. By the end of the two years, the land value would have appreciated to an uncertain amount, say by at least 25%, raising the land cost to sh5m.
So, why not opt for a way out? Getting mortgage financing would be the more reasonable way of acquiring this land before it appreciates, but you would still have to remit money to your financier at an interest rate that covers the whole cost (inflation, appreciation) and the returns on investment. It somehow appears expensive. Why then don’t people try out a group land ownership project where they pull resources to by land before its value appreciates?
With a 50 X 100 ft plot of land, one can fit in four semi-detached self-contained two-bedroom housing units. Therefore four people can own one plot. Each one is required to raise sh1m, hence taking them only seven months to raise the sh4m.
Land laws provide for group ownership. The onus is now on the four people to construct houses. It is cheaper to construct semi-detached units than detached ones. It is also unrealistic to buy just a quarter of a 50 X 100 ft plot. You may not get the necessary facilities like parking and compound, but the four can design their plot to encompass all the necessary facilities.
This project creates a bond among the group members, develops accountability, promotes community development and keeps the vision of the friends alive.
The writer is the national
coordinator of Basic Family and a quantity surveyor
The Demographic and Health Survey 2006 shows that 81.4% of Ugandans are under the age of 35 years. One becomes an adult at 18 years. The youth make most of the decisions regarding their future between 18 and 35 years.
Today, a number of youth have resorted to renting due to lack of funds to buy and develop land. Others stay with friends and share the rent.
Real property is relatively expensive compared to the economic situations of most individuals. If we are to critically look at the offers available from the real estate dealers, the smallest unit area on sale, a 50 X 100 ft plot costs at least 4,000,000. The upper limit depends on the location. Assume I am interested in acquiring the cheapest plot with a clear title but can only save sh150,000 a month, it would take me 2.25years to raise the sh4m. By the end of the two years, the land value would have appreciated to an uncertain amount, say by at least 25%, raising the land cost to sh5m.
So, why not opt for a way out? Getting mortgage financing would be the more reasonable way of acquiring this land before it appreciates, but you would still have to remit money to your financier at an interest rate that covers the whole cost (inflation, appreciation) and the returns on investment. It somehow appears expensive. Why then don’t people try out a group land ownership project where they pull resources to by land before its value appreciates?
With a 50 X 100 ft plot of land, one can fit in four semi-detached self-contained two-bedroom housing units. Therefore four people can own one plot. Each one is required to raise sh1m, hence taking them only seven months to raise the sh4m.
Land laws provide for group ownership. The onus is now on the four people to construct houses. It is cheaper to construct semi-detached units than detached ones. It is also unrealistic to buy just a quarter of a 50 X 100 ft plot. You may not get the necessary facilities like parking and compound, but the four can design their plot to encompass all the necessary facilities.
This project creates a bond among the group members, develops accountability, promotes community development and keeps the vision of the friends alive.
The writer is the national
coordinator of Basic Family and a quantity surveyor