COSTS & CONTRACTING
A few Questions and Answers
(page under development)
HOW DO WE FIND THE LAND TO BUILD ON?
It's best if you come to the Mbour area so Hamidou can take you around. There are still good lots available. Depending on location of course, size and whether water and electricity are already nearby, lot prices can be as low as $8,500 (CFA 5.000.000).
HOW MUCH DOES A SMALL CUSTOM HOUSE COST - WHAT SHOULD WE BUDGET?
Of course everything depends on what you want. We've built several small high-quality houses, modest and efficient, with 3 bedrooms, 2.5 baths, salon, kitchen near an interior courtyard for outdoor food prep, large African-style foyer, master bedroom with private bath, all on one floor with stairway to 2nd floor for future accommodations (for rent or family use). Lot size around 12 x 20 meters. Costs range depending on interior finishings (solar, type of tile and flooring, lighting, plumbing fixture quality, etc.) from $55,000 to $80,000. These are "ball-park" estimates just to help you start thinking. We can also build larger homes (like our own home in Grand Mbour) with fancier floor plans and finishings.
HOW DO WE GET A HOUSE DESIGN AND FLOOR PLAN THAT MEETS OUR NEEDS AND BUDGET?
There are local architects who are qualified. We also have some floor and house plans we've used that you can adapt to your needs. You can also use house/floor plans from other houses you like. As we build, there are always changes to be made which is why we keep in close contact with you throughout the building process.
IS THERE FINANCING AVAILABLE AND HOW IS CONTRACTING AND MONEY TRANSFER DONE?
Our aim is to build homes for people with limited means, so we keep our process as simple as possible. We believe that many people have saved up money, or have access to funds, but have been afraid to disburse it to family, friends or unknown contractors for fear of being disappointed. For those residing in North America, borrowing is possible through home equity loans, credit cards, and by accessing retirement savings. You may even be able to secure financing from a Senegalese bank (Banque de l'Habitat du Senegal which has offices in New York, Cincinnati, and elsewhere in the U.S.). We focus on building your home and leaving the financing part up to you. In return, we are flexible in terms of money disbursements knowing that many people cannot pay everything at once. If it takes 9 months instead of 6, or even more, we can work with you. In terms of contracting, Senegal Home Builders, a U.S.-registered business, enters into a contract with you as any builder would - with specs, costs and a timetable. Funds flow from you to a designated U.S. bank account from where we transfer funds by each of the 5 construction phases to Senegal. Phases are funded incrementally.
WHAT ARE THE RISKS IN INVESTING IN A HOUSE IN SENEGAL AND HOW CAN WE MITIGATE THEM?
Like any investment, there are risks, some of which we've itemized below with ideas on their mitigation:
* Using a bad builder. Contracting with Senegal Home Builders registered in the U.S. greatly lessens risks, especially since we are honest and transparent.
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* Not securing the land. We know the paperwork process well - having secured ownership for over 15 lots in the Mbour-Saly area. Local real estate attorneys (notaires) are also available to verify paperwork, if so desired.
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* Currency exchange volatility. Almost all investments outside the U.S. involve local currency fluctuation risks against the dollar. The CFA franc has varied a fair amount over the last decade but has been high (between CFA 555 and 590 for one dollar) over the past year. Our prices are quoted in CFA and your transfers are then converted to the required CFA amount.
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* Political instability. Senegal has been stable politically since the late 1960s. It has never had a coup and has evolved slowly towards more democracy. It has a vibrant free press (TV, newspapers, etc.) and does not impede or control Internet access. There is always the risk of instability - refer to some of the documents on this website for more information.
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* Economic shock. Senegal has diversified its economy over the years away from peanuts and towards extractive industries (high-value agricultural exports, gold, iron ore and soon oil and gas). Its tourism potential is largely unmet despite a new international airport close to high-quality beaches. Depreciating the CFA would be a major economic shock.
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* Violent extremism. Senegal is surrounded by countries where extremism has made inroads into previously peaceful places. Senegal stands out having a tolerant form of Islam that eschews violence. Terrorist attacks could change the situation and affect economic growth.