People earning between R3 500 and R7 000 a month, long seen as a “high risk” group, will now be able to access housing finance after a “groundbreaking” agreement signed between the City of Cape Town and three major banks.
Mayor Helen Zille signed the deal with Absa, Nedbank and Standard Bank at Tafelsig, Mitchell’s Plain, making Cape Town the first city to have such an agreement in place.
The agreement stems from the commitment made by the financial sector under the Financial Services Charter last March that they would invest at least R42-billion in this market by December 2008.
‘I hope we make it work’
Zille said the agreement meant banks would be involved in all housing subsidy developments across the city and would further help eradicate the province’s housing backlog.“If we make it work in five years, I hope we do not have to have a waiting list of 200 000 people. I hope we make it work,” she said.
In terms of the agreement, potential buyers will have to pay a deposit of up to 10 percent, and the government can give these buyers a 50 percent subsidy on the deposit. Monthly payments may be up to 25 percent of income for a period of up to 20 years.
The payment methods will be structured in accordance with personal financial commitments and affordability levels.
The launch venue in Tafelsig is expected to be one of the first housing projects to benefit under the scheme.
The project is expected to develop 1 800 units in three years.
Standard Bank’s Linda Sing said research showed a 625 000 shortfall in the Financial Services Charter target of housing for between two and four million South Africans.
Nedbank regional director Anthony Costa said they were acutely aware of the shortage, particularly in the low income market. - Cape Argus
Mayor Helen Zille signed the deal with Absa, Nedbank and Standard Bank at Tafelsig, Mitchell’s Plain, making Cape Town the first city to have such an agreement in place.
The agreement stems from the commitment made by the financial sector under the Financial Services Charter last March that they would invest at least R42-billion in this market by December 2008.
‘I hope we make it work’
Zille said the agreement meant banks would be involved in all housing subsidy developments across the city and would further help eradicate the province’s housing backlog.“If we make it work in five years, I hope we do not have to have a waiting list of 200 000 people. I hope we make it work,” she said.
In terms of the agreement, potential buyers will have to pay a deposit of up to 10 percent, and the government can give these buyers a 50 percent subsidy on the deposit. Monthly payments may be up to 25 percent of income for a period of up to 20 years.
The payment methods will be structured in accordance with personal financial commitments and affordability levels.
The launch venue in Tafelsig is expected to be one of the first housing projects to benefit under the scheme.
The project is expected to develop 1 800 units in three years.
Standard Bank’s Linda Sing said research showed a 625 000 shortfall in the Financial Services Charter target of housing for between two and four million South Africans.
Nedbank regional director Anthony Costa said they were acutely aware of the shortage, particularly in the low income market. - Cape Argus
No comments:
Post a Comment