Man’s big question: Build or to buy a house?
26th October 2007
IT is everyone’s dream to build a comfortable house but how you do it matters. Most people prefer to build their dream houses, while some go for already built houses for different reasons. Experts say several factors determine whether someone goes for an already built house or constructs one.
By Peter Kaujju
IT is everyone’s dream to build a comfortable house but how you do it matters. Most people prefer to build their dream houses, while some go for already built houses for different reasons. Experts say several factors determine whether someone goes for an already built house or constructs one.
Elizabeth Kabugo, the Business Development Manager at Development Finance, says both have advantages and the decision depends on the individual.
“Building helps you monitor the cost because you are in control. It is also relatively cheaper compared to a constructed house because every cost will be factored in. However, buying a constructed house on the other hand is hassle-free,†explains Kabugo.
The inconvenience of building includes supervision, thefts at the site, the tension of money availability versus work stopping at a crucial stage, possibility of accidents and market price increases.
A source from National Housing and Construction Company says it is easier and cheaper to buy a house.
“Buying a house is most convenient and cheaper compared to building. Most of the people in the house acquiring bracket are working class and do not have time to do close supervision of the construction,†says a source.
There are several real estate companies like Kensington, Akright projects and National Housing and Construction Company (NHCC), which do all the necessary work like construction, titling and planning apartments and houses with good infrastructure and environment. You just pay and occupy the house.
Besides, most companies do not insist on cash. You make arrangements to pay in installments but occupy the house immediately.
The entry of many players in the mortgage business, as well as real estate developers, has presented an opportunity for many to acquire houses.
The number of institutions that provide mortgage financing in Uganda has reached four including dfcu, Housing Finance Company and recently Stanbic and Standard Chartered Banks. Salaried people and those in gainful business can easily access loans to buy houses.
Most of these institutions have a repayment period lasting up to 20 years but interest rates which are above 16% per annum may stand in the way for some.
According to Magezi Justus, an architect at William Street, Kampala, building a house becomes expensive in the long run especially if it takes some time to complete. “Prices keep increasing, as well as domestic demands,†he says
“I know many people who are forced to sell their houses due to sickness, family disagreements, loans, investment opportunities or better opportunity lies elsewhere. Depending on the urgency for money, they may be willing to give it away at a cheaper priceâ€
However, Moses Kirunda, an estate manager, says building your own house is better. You make your own plan, he says. The design of the house matters a lot. It is very common to find people who bought fully furnished houses pull down walls because they feel something is wrong needs to be changed or adjusted.
Another factor Kirunda refers to is location. “Some people want specific areas. Getting the house you want in an area you want is a coincidence reallyâ€
Safari Luke says he prefers to build because he takes his time and avoids loans and debts.
“We don’t all have the financial muscle to buy houses or patience to service mortgages for years. But once you start and roof your house, you can take your time and build in stages whenever the funds are available. You complete and occupy it in peace without the pressure of banks and mortgage companies.
In short, every individual has a preference depending on such factors as personal ability, resources, location, occupation and urgency. But it pays to consider both options before going ahead with the project.
IT is everyone’s dream to build a comfortable house but how you do it matters. Most people prefer to build their dream houses, while some go for already built houses for different reasons. Experts say several factors determine whether someone goes for an already built house or constructs one.
Elizabeth Kabugo, the Business Development Manager at Development Finance, says both have advantages and the decision depends on the individual.
“Building helps you monitor the cost because you are in control. It is also relatively cheaper compared to a constructed house because every cost will be factored in. However, buying a constructed house on the other hand is hassle-free,†explains Kabugo.
The inconvenience of building includes supervision, thefts at the site, the tension of money availability versus work stopping at a crucial stage, possibility of accidents and market price increases.
A source from National Housing and Construction Company says it is easier and cheaper to buy a house.
“Buying a house is most convenient and cheaper compared to building. Most of the people in the house acquiring bracket are working class and do not have time to do close supervision of the construction,†says a source.
There are several real estate companies like Kensington, Akright projects and National Housing and Construction Company (NHCC), which do all the necessary work like construction, titling and planning apartments and houses with good infrastructure and environment. You just pay and occupy the house.
Besides, most companies do not insist on cash. You make arrangements to pay in installments but occupy the house immediately.
The entry of many players in the mortgage business, as well as real estate developers, has presented an opportunity for many to acquire houses.
The number of institutions that provide mortgage financing in Uganda has reached four including dfcu, Housing Finance Company and recently Stanbic and Standard Chartered Banks. Salaried people and those in gainful business can easily access loans to buy houses.
Most of these institutions have a repayment period lasting up to 20 years but interest rates which are above 16% per annum may stand in the way for some.
According to Magezi Justus, an architect at William Street, Kampala, building a house becomes expensive in the long run especially if it takes some time to complete. “Prices keep increasing, as well as domestic demands,†he says
“I know many people who are forced to sell their houses due to sickness, family disagreements, loans, investment opportunities or better opportunity lies elsewhere. Depending on the urgency for money, they may be willing to give it away at a cheaper priceâ€
However, Moses Kirunda, an estate manager, says building your own house is better. You make your own plan, he says. The design of the house matters a lot. It is very common to find people who bought fully furnished houses pull down walls because they feel something is wrong needs to be changed or adjusted.
Another factor Kirunda refers to is location. “Some people want specific areas. Getting the house you want in an area you want is a coincidence reallyâ€
Safari Luke says he prefers to build because he takes his time and avoids loans and debts.
“We don’t all have the financial muscle to buy houses or patience to service mortgages for years. But once you start and roof your house, you can take your time and build in stages whenever the funds are available. You complete and occupy it in peace without the pressure of banks and mortgage companies.
In short, every individual has a preference depending on such factors as personal ability, resources, location, occupation and urgency. But it pays to consider both options before going ahead with the project.