This feature on buying land for speculation was written and first published by economic analyst Ephraim Njega:
If I were to be in charge of this country the first sector I would disrupt completely is the real estate sector. I would ensure the government invests massively in public housing.
Unless we stop this plot madness we wouldn’t get anywhere as a country. Imagine if all this money in plots was invested in manufacturing or even commercial agriculture.
Land should be for production not for speculation. Speculation in land is disastrous for the economy. Speculation in land creates a scarcity mentality which leads to hoarding. This creates artificial ever rising demand for land and pushes prices beyond what most people can afford.
The plots menace is also causing haphazard development in the country. We can’t have properly developed cities when everyone wants to develop their small plot without any planning or coordination. Eventually we will all be living in slum like environment.
Our young people will never achieve much if they continue pouring a huge portion of their income into rent. If we do not change, rent could end up consuming even more than 50% of people’s income. It is already happening to some extent. How can such a person save? How can they achieve financial security?
The real estate sector dysfunction has been the greatest contributor to corruption in this country. People know if they invest in land they can’t go wrong since demand far outpaces supply. So they steal public money and pour it into buildings.
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We need to refocus the country to better issues. This subsistence existence cannot even allow people to be creative and innovative. How can you think creatively or take risks when the slightest mistake can lead to homelessness?
We must turn land back into a factor of production it is meant to be as opposed to the tool of exploitation it has become.