Building a mansion or moderate house: Which one makes more economic sense?

Seef Property Consultant and Valuation Expert Davies […]

Seef Property Consultant and Valuation Expert Davies Siwangulwa says building a mansion or retirement home requires a thorough understanding and assurance of quick sale when it is no longer in use.

Speaking in an interview with the Zambian Business Times (ZBT), Siwangulwa revealed that there are several mansions that have remained unsold despite the heavy expenditure that was incurred during the development process.

“The retirement houses that usually have five or six bedrooms— the implication is that when you build such when your children vacate, the house becomes so big that you would want to move to a smaller house. The challenge is that when you want to put it on rent, the amount that you will be demanding may not be something that the market may pay, and most of these houses find it difficult to lease out,” he revealed.

 He cited an example of clients that build houses at a colossal sum of money and choose to rent out at K30, 000 per month when the home is based in six miles, which might not be attractive to clients due to the location.

Siwangulwa urged upcoming homeowners to instead develop semi-detached houses where they can easily rent out one side and occupy one and get value for money.

“The most important aspect is location; it matters a lot. You find that for a two-bedroom house in Kabulonga and Chalala, the cost of construction would be the same, leaving land, but the amount of income would be different—maybe different, but the amount of lease.

However, a retirement home can be a good alternative for ones that just like to occupy it, without plans of sale in the future, especially if the location is a disadvantage to the market.

Article by Samuel Mutale