By AKHIGBE Dominic M
WED, JANUARY 11 2017-The dream of Home ownership is one that every man has from the time he starts stabilizing his sense of consciousness. Housing to man is not first of all a status symbol; it is more of a generic need than being a class distinction formula. Elementary Economics has from the word go, classified Accommodation (Housing) as a basic need to man.
It is therefore not an option whether a man should be housed or not. It is a different ball game and of course a function of the man’s means where and how he decides this all important need as clearly defined in Economics. It is typical of man to want to show some sense of distinction between him and his less-privileged neighbours by making a statement with his housing choice and design. He could even decide to live in some form of geographical Eldorado that defines his taste, class and sense of importance; all of these now become a function of his financial muscle first of all.
The formula of affordability and sustenance become the defining factor at this stage. This is the very unequivocal position of housing to man from creation. In Lagos for instance, people will naturally take a second look if a man says; ‘I live in Banana Island’. The quick fix conclusion by the ordinary Lagosian is that such a man must have a very fat purse. I remember a boss of mine; way back in my early days of employment whose annual rental bill for a 3-bedroom flat in Banana Island was well over three million naira. That is some years back. It is even rumored these days that landlords in Banana Island now collect their rents in dollars! These razzmatazz are not in the classification of Need; it is not what our fathers defined in Elementary Economics as Need. This now becomes a function of choice arising from the man’s affordability.
I was in a Housing Conference organized by REDAN some time back. It was actually some form of lectures on Affordable Housing. One of the speakers was labouring hard to demonstrate how an individual desirous of an affordable housing solution could achieve the dream of a three bedroom flat from start to finish, including minimal furnishing in the region of two million naira. It was indeed a professionally worked out job that ordinarily should be a master piece. I remember a man asking; ‘sir is this calculation applicable to Oniru Estate?’ every other attendant at the workshop burst into a cacophony of laughter. Come to think of it; a bag of cement in Banana Island is a bag of cement in Sango, a border town between Lagos and Ogun State in South West Nigeria. The differential in pricing may just be in the logistic of carriage or storage which of course may just be insignificant.
So are the other basic building materials required to actually erect a building structure? The question then is; where does the wide distinction in affordability come in? my friend, an Affordable Housing Consultant has a ready answer to that question. In his opinion, the difference comes in the insatiable quest for man to show to his fellow man that some animals are more equal than others. The man who asked the question latter asked me on a lighter mood during one of those after conferences’ interactions; sir, why would I want to pay ten million naira for a 3-bedroom flat to another man on an annual basis as rent in a house that would not tell you when the world would end? Though the question was rhetorical? It was apt and thought-provoking. This same amount would give you a four bedroom Terrace duplex fully built to class in some other parts of the state. This is the incontrovertible truth.
A friend who writes for a Housing Magazine in the United Kingdom told me that it was far from sanity for him to commit such irrational blunder of funds application. His submission was that, such values were not realistic and do not in any way add up to the anticipated social or economic value of a man’s assessment. In the United Kingdom for instance, yes, there are distinct estates and locations such as Westend and the like; but this is basically for location delineation. Almost the same social amenities you see in York a village almost five hours drive from Liverpool are also what you find in Westend. People who choose to live in either of the divides do that not purely on class distinction drive basis, but for some form of economic or political considerations.
In his opinion, there is actually a statutory price in opting to reside in such highbrow areas. Unlike in Nigeria, where the poor are actually the ones labouring hard to meet with their statutory obligations, the rich in most cases find their ways round it. In Lagos, early in the year; the state came up with some form of tax laws that now captures the artisans in the tax payment net, no matter how insignificant the income is. This effort is driven with every sense of vigour by those whose responsibility it is to collect tax. On the other hand, you will see a man who lives in absolute affluence and flaunts sumptuous wealth and displays all sorts of indescribable classes of automobiles only running to ‘process’ his task clearance only when there is need for it. To them, tax payment in on the exemption list. They do it only when they need it and not as a matter of commitment to the state. This is just by way of digression anyway.
In my opinion; it is good to live in any of these status areas. No doubt; there is nothing wrong with it. I however ask the question; must it be a do-or-die endeavour. In today’s world when technology has made the whole world a global village; a man can make a more sensible economic decision. In January 2016, I visited one of the Estates under development by one of the major Real Estate players in the South Western part of Nigeria. This Estate is located within the suburb of Ogun State. My mouth was thrown agape when I saw the class, zest and serenity that have been so lavished in this same Estate in this suburb. Everything required to give live a meaningful and reasonable comfort was put in place. It was so unbelievable. My host; a Manager in the company told me that the facilities were put in place for the quiet enjoyment and relaxation of the residents of the estate. All that was required to assess these world class facilities was to be a resident of the very affordable estate. I further inquired from her on how much I would require getting a plot of land in the Estate, she told me it was still in the neighbourhood of two million naira which I could even pay over time. For me, it was a wiser choice to put my money here than to put it in some form of square meter in some so-called Estates in the highbrow where life is lived per second. As we engaged in some form of discussions as to why some rational thinking individuals would prefer to pay ten million naira for a three bedroom flat as renewable annual rent, another close observer intercepted the conversation. His opinion was that such individuals may be constrained by some considerations like accessibility, arminities, security and other countless reasons. I told him those were never issues.
Electricity for instance has now become self-driven effort in Nigeria. Citizens have long ago addressed themselves to this fact as they have resorted to looking for cheaper sources of energy. Water has long ago become the exclusive responsibility of developers. If you build a house without a functional borehole, even in such highbrow estates; your job is not done yet. Security has become the responsibility of the citizens. Some estates make more collective effort by engaging vigilante groups or engaging private security outfits. In the area of road network; you need to take a drive around FESTAC, a once flourishing government sponsored Estate in Lagos; then draw up your conclusions. In making your housing choice; don’t be deceived into investment suicide. The world is now a global village. The same level of comfort can be provided anywhere you are. Remember, a house is a fixed factor. Even if it is in the forest; some day soon, development and urbanization would catch up with it wherever it is.
AKHIGBE Esq is CEO, Property Logic Incorporated/Business coach & Seminar speaker/expert in business and property law. Email:Propertylogic.incorporated@gmail.com/www.propertylogicincorporated.com: Tel: 2348034846284
