The Sunday Mail
Africa Moyo recently in GWERU
Zimbabwean property companies have begun changing tact by offering soft terms to prospective homeowners in order to drive volumes.
Although there is huge demand for properties, the value for most of them has been prohibitive while exisiting payment terms were steep.
Gweru-based ZimBuild Property Investments, a subsidiary of Tinshel Properties recently invested US$500 000 for a 50-acre property where it expects to establish more than 2 000 residential stands, and is now offering zero percent deposit to customers.
Stands are allocated upon joining the scheme, beneficiaries are expected to pay monthly instalments of $100 for five years.
The project is funded by BancABC and the company’s cash proceeds from previous ventures.
ZimBuild CEO Mr Tinashe Manzungu told The Sunday Mail Business that the project targeted the mass market and sought to reduce the national housing backlog, which stands at 1,25 million people.
Government has set a target of 313 000 low-income housing units by 2018.
“In line with that, private people and Government should work together to try and achieve the national housing policy, and therefore, as the private sector, we have already started implementing Government’s objectives targeting mainly civil servants.
“. . . we are also looking at affordability by people such as civil servants to acquire immovable property. It has been difficult for them to get immovable property because for one to get a stand and develop it, they need to pay cash or a lump sum deposit,” said Mr Manzungu.
CBZ Life has insured the project so that beneficiaries who cannot pay either through injury or incapacitation will not lose properties.
Added Mr Manzungu: “We realised that a zero deposit means someone is going to be paying for some time — about 66 months, which is almost five years — that means there is going to be a lot of risk in between and that risk should be done away with through the engagement of people such as CBZ Life. This means if someone is going to die or injured (sic) during the period of repayment, he is automatically covered by CBZ Life.
“CBZ Life will just come and pay the outstanding amount to us and beneficiaries retain their stands. So a number of unforeseen circumstances are covered apart from someone that is fired for misconduct.”
Zero deposit means beneficiaries will not contend with two bills every month — bank interest on loans and the monthly instalment for the stand.
The first phase of project, which runs to June 2016, has 500 medium to high-density stands (200 square metres to 400 square metres) priced at US$33 per square metre, (US$6 600 for 200 squares).
Phase 2 will have 1 500 stands and begins in July 2016 in the same area.
Mr Manzungu said apart from benefiting civil servants, ZimBuild had formed strategic alliances with Gweru schools to finance and construct hostels and classroom blocks.
ZimBuild is constructing hostel blocks at Zororo Baptist School, an ECD classroom block at Muunga Primary School and Mambo High School, among others.
Tinshel Properties has won accolades from the Zimbabwe National Chamber of Commerce.
