In a bid to provide affordable housing for the poor, First National Bank (FNB) and the government have formed a joint venture, the bank announced on Thursday.
The FNB project will contribute 3 000 bonded housing units to the cntroversial N2 Gateway Project, in Joe Slovo and Delft.
The 567 bonded homes will border the 705 rental units that have already been completed. The next phase of the project will see the construction of approximately 2,000 subsidised homes (of 40m²) to be given free to those who qualify.
FNB said that that bonded houses will cost between R150,000 and R250,000 each. FNB bonds will be available to people who earn between R3,500 and R7,500 a month. - FIN24
Construction has already begun at Joe Slovo. Construction at Delft will commence later this year.
Property developers M5 will build the houses, having partnered with FNB to build houses in other housing projects in Gauteng.
FNB’s total investment in the N2 Gateway project is in excess of R900m. The investment is the product of collaboration between FNB’s business units, Commercial Property Finance which funds developers and FNB Housing Finance which provides home loans to qualifying individuals.
FNB’s involvement in the N2 initiative brings the bank’s total investment in affordable housing in South Africa to more than R2bn and over 7 000 housing units in the last 15 months.
This amount is set to peak at about the R3bn mark soon as more affordable housing projects are currently being assessed by the bank and other key housing stakeholders like municipalities and the Department of Housing.
FNB CEO Michael Jordaan recommitted the bank to future affordable housing developments in partnership with the government.
FNB’s involvement in the N2 housing project also increases the bank’s contribution to the attainment of the R42bn target to be met by banks by December 2008.
The FNB project will contribute 3 000 bonded housing units to the cntroversial N2 Gateway Project, in Joe Slovo and Delft.
The 567 bonded homes will border the 705 rental units that have already been completed. The next phase of the project will see the construction of approximately 2,000 subsidised homes (of 40m²) to be given free to those who qualify.
FNB said that that bonded houses will cost between R150,000 and R250,000 each. FNB bonds will be available to people who earn between R3,500 and R7,500 a month. - FIN24
Construction has already begun at Joe Slovo. Construction at Delft will commence later this year.
Property developers M5 will build the houses, having partnered with FNB to build houses in other housing projects in Gauteng.
FNB’s total investment in the N2 Gateway project is in excess of R900m. The investment is the product of collaboration between FNB’s business units, Commercial Property Finance which funds developers and FNB Housing Finance which provides home loans to qualifying individuals.
FNB’s involvement in the N2 initiative brings the bank’s total investment in affordable housing in South Africa to more than R2bn and over 7 000 housing units in the last 15 months.
This amount is set to peak at about the R3bn mark soon as more affordable housing projects are currently being assessed by the bank and other key housing stakeholders like municipalities and the Department of Housing.
FNB CEO Michael Jordaan recommitted the bank to future affordable housing developments in partnership with the government.
FNB’s involvement in the N2 housing project also increases the bank’s contribution to the attainment of the R42bn target to be met by banks by December 2008.
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