I started
a big family house during my working career when I was heading a juicy department in my
organization, I was later transferred to another department that is not juicy
as a result of incessant complaints from
my colleagues who are envious of my position.
But
that is not the case, the issue now is that I am retired and I am faced with the difficult task of
managing my pension pot as well as completing my build, these were lamentations
of a retired pensioner. But I feel that
the pension because he did not consider building house within the limit of his
income.
Richard
Dyson noted that “ while traditional pension saving is complex and unpopular
with many, the phenomenon of buying-to-let is now growing at its fastest rate
ever, spurred by rising rents and house prices and cheap mortgages”
In most
developed countries in Europe and America, pension fund are being used for
infrastructural development especially in the area of housing. But what they do
there is that they build houses for lease and rent, and in some cases for
outright sale. They discovered that of all investment in life, it is real
estate that has the highest rate of return. As a house that was bought in 2012
for 10 million cannot be sold for the same amount even within a period of 3
months. As both land and building appreciates over a period of time. Jerry Lewis, the owner of MacDonald, once
stated that he is getting his wealth through real estate and not through the
restaurant.
But my
interest in this presentation is the impact of property ownership in retiree’s
life. Some cities have been noted to charge property tax; a typical case is
that of Lagos and other major cities in and around the world. Building house is a great idea and a solid
investment, but what people do not know is that the type of built is of
paramount importance especially in the life of the retirees.
Building a house for commercial is a great
investment unlike building houses strictly for residential only for the owners,
if it is residential commercial purposes, it is also a good idea. But what I am
adversely against is building magnificent house just for residential. That is a
big liability. This is because it may be
difficult to maintain such property during retirement, as the pension pot may
not be enough to offer adequate maintenance's of the facilities during
retirement as house owners or land lords do not make adequate provisions for
sinking fund as it is only in Britain that make provisions for sinking funds as
it relates to Building , other countries like Unites States , only relates sinking funds to bonds but In modern finance, according to Bodie, et al. (2007) Essentials
of Investments .in Wikipedia “a sinking fund is a method by which an
organization sets aside money over time to retire its indebtedness. More
specifically, it is a fund into which money can be deposited, so that over time
preferred stock,
debentures
or stocks can be retired” But has been extended to building in Britain as way of alleviating or reducing the huge budget in building maintenance.
Therefore in any concerning building and capital expenditures, it is imperative we embark on the necessary planning and making sure we build according to our budget even we have the opportunity at the point to build a bigger one., what we are saying is
that a house you cannot adequate maintained should not be use as final abode
for retirement as it will create more financial bottlenecks to the retiree and
at the end making retirement life miserable.
And until we have that mindset, we may not have a happy retirement.
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