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21.09.2019 Feature Article

Building Half A House But Nice Environment

Building Half A House But Nice Environment
LISTEN SEP 21, 2019

As Ghanaians sincerely struggle to find solutions to their problems, a study of other nations and how they solve theirs is a must! Universities must by necessity offer courses with textbooks that show examples such as that of Singapore.

Our radio and TV stations must show programs with practical educational content instead of empty talk and slogans about technology, without investing seriously in Business Parks, for example, as done by Taiwan, Singapore, and India some few decades ago. In another article I will focus on how to build an industry in high Technology, which was this writer’s initial career for about three decades in California, USA.

There is a Youtube Video of how some Social Housing homes were built in Chile after the earthquake. It gives hope and some inspiration.

This has given me a great idea to share. Half a house- is defined as meaning:

- Nice environment, paved grounds, with some landscaping,

- Row houses, shared walls, with nicely designed gable roofing for each unit.

- Outside walls, divided into 2 big areas:

— one side with doors and windows, and other side open with possibly

— half a wall and open to fufu and outside cooking and entertainment;

- total roofing, and perhaps

- Electrical and plumbing lines.

To Our Architects and Builders:

- can you build this say 16 units per plot in two 8-Unit rows as shown in the video, for say Ghs 50,000 ($10,000)?

Let me help with the numbers. Lets say a homeowner has saved Ghs 5,000. For a loan of 45,000 ($9,000) for 10 years at say 10% annual interest rate, the monthly fully amortized Principal and Interest (P&I) = 595 /mo (for 10 yrs). Fully amoritzed means at the end of the 10 years the loan is fully paid off.

I think middle income families in Ghana can afford that if they are making say combined Ghs 1,802 (at 33% Debt to income ratio).

I think all we need is some CAPITAL set aside- say some $300 million - half of what President Akufo Addo set aside for the NAGRO graduate students Training program. That program may have had good intent but is one of the most wasted socialist experiments. We can do better!

*That money will build 33,333 Homes!*

President Nana Akufo Addo would be a Hero for life and 100 years after if he had done that and hired the Graduates to help build and manage the housing.

Let is remember this is owned Housing and not a free Housing!

Paying that loan back also is a good business if we can obtain some external loan at say 5-6% interest. In the ten years our total payments at 5% on the $300 million would be $381,835,855 if we also do full amortization payments on the loan.

And at 10% loaned out to homeowners, the Government (or lender) will collect $485,742,653.

As such the Government would have done a Profitable business with a Gain of $93,906,798.

(I do not want to use the word Profit). This is enough to hire people to manage the Mortgage Bank loans and project.

Assuming even some losses, Ghana stands to gain more than $90 million on borrowed funds! We should borrow and invest in our people instead of importing expensive vehicles for officials and engaging in socilaist experiments!

Lets get the message to the President. Some of us are retiring and it hurts when some white peoples think black nations are S-Holes! No! We can do better!! Lets share our overseas experiences if these leaders will be humble enough to listen, and are sincere to find solutions for the people of Ghana.

Long live Ghana.

Dr. K. Danso Sep.20, 2019

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