Prime
Your twilight years are not the time to build that palatial home
What you need to know:
- Owning a house in general is not cost-free, much as you are not paying monthly rent. The cost of owning include taxes, regular cleaning, regular, electricity and water, major repairs
In the mid-1980s, a Ghanaian expert, in his mid or late 50s surprised us at Ardhi University when he imported a brand-new Mercedes-Benz. Whoever owned a car at that time, he or she owned a ramshackle, a second-hand car which was very much run down. Such cars were referred to in Kiswahili as “mkweche”, or “spana mkononi”.
The Professor argued that since he was getting old and would soon retire, that Mercedes-Benz was likely to be the last vehicle he ever buys. So, he wanted to go for the best that there was. He wanted to a grand finale in his car ownership career.
You may be among the lucky few who, on retirement get a golden handshake from your employer or from the social security funds. You may therefore be tempted to put that golden handshake money into your grand castle of house which you have always dreamt of. You are thinking of a house which in some local language could be called “katangaza” (a wonder house); like a house so and so has put up somewhere you know of.
After all, there is this saying of the wise that: “An Englishman’s House is his castle”. Taking the analogy of the expat Professor and his brand-new Mercedes-Benz, this is likely to be your last house to construct and live in.
There are reasons why you should not commit your money to that multi-storey grand house of your dreams in your old age.
It is too expensive to put up and there have been cases where the golden handshake money has not been enough to complete such a grand investment. An incomplete grand house in old age, would be a disaster.
When you get that golden handshake, get a good financial advisor and put a good part of that money in financial markets (like bonds, shares, stocks and mutual funds) where it can yield passive or near-passive income without a lot of hustles. As for the balance, put up a modest single storey house or renovate your existing one.
Owning a house in general is not cost-free, much as you are not paying monthly rent. The cost of owning include taxes, regular cleaning, regular, electricity and water, major repairs like a leaking roof or a cracked wall, repainting, looking after, and sometimes replacing plumbing and sanitation equipment, addressing defects in electricity supply, looking after components and finishes, security, without forgetting siteworks.
The larger the house the higher the cost of maintaining that building. You do not want to be shouldered with huge costs in your old age.
Besides, in your old age, you may find that your space needs change. Your family may be smaller, given that your children may have gone their own ways establishing their own households. With a falling birth rate, modern parents want to live with their children, instead of committing them to their parents. So do not expect to live with your grand-children.
Indeed, if you put up your house with the idea of having a room for boys, a room for girls, a room for the mother-in-law and a room for visitors, you are likely to have empty rooms in your old age, which are a burden to keep. This may enhance the feeling of loneliness (especially in urban areas), associated with old age.
Given mobility problems in old age, it may be difficult for you to access the upper storeys of your grand house. There are cases, where house workers live on the upper floors meant for the owner. The ground floor is convenient not only for self-mobility but also for those offering care.
The convenient house in old age needs to be relatively small and single floor. However, a large bedroom, with a corner for reading, and connected to a large toilet suite is recommended. The toilet suite should be convenient for a person on a wheel chair or with impaired mobility. Where possible, let the toilet suite have a sauna, as well as one or two light-exercise equipment, such as a stationary bicycle.
You need to get out and enjoy the sunshine and fresh air, so a green environment surrounding your old-age house is crucial. Trees and other plants, inviting birds, could make old age more meaningful.
Old age should also come with the idea of sharing superfluous accommodation, rented out to other people, especially the young generation, who can beef up the income of the house-owner, but also can inject life in the landlord’s compound, since they would normally come with young children.
In short, the temptation to put up a grand residential house for your occupation during your twilight years may be misguided. You do not have plenty of time to go and the house may be too expensive to construct and maintain; its utility is limited; and it may end up enhancing loneliness in old age.
Lusugga Kironde is Professor of Land and Urban Economics and lead consultant at TKA Company Ltd
