The Sunday Mail
Godknows Hofisi
Business and Law
At the heart of many Zimbabweans is the desire to own a house. This is a dream for people of various ages and walks of life. This is considered one of the physiological needs under Maslow’s hierarchy of needs theory.
This article seeks to give some pointers on how to acquire a house for own use. Quite a number of people are renting residential properties, including even regrettable ages. Growing up, we were told that owning a house brought about security, stability, satisfaction and joy.
Below are some of the ways or factors an aspiring homeowner can take into consideration in an effort to acquire a house.
Mortgage finance
Apply for a mortgage at local a bank. A mortgage is a long-term loan issued by a bank with such facilities for purposes of buying a house. The house that one buys is used as security for the loan by the bank and the mortgage is registered against the property. The lending bank normally keeps the title deeds until the loan is repaid. Amongst other things, an applicant should prove source of regular income and ability to repay the loan. In some instances, the difference between rent and mortgage instalment may not be too huge. Borrowing during an inflationary period can be advantageous at times.
Company housing loans.
In Zimbabwe, some companies such as financial institutions offer housing loans to their qualifying employees. This is an opportunity not to be missed if it exists.
Buying a residential stand and building
Stands can be bought from land developers or private sellers. Buying a stand and building allows one a gradual process which is in line with his or her disposable income.
Buying from land developers
Some land developers sell land or houses and ask buyers to pay at once or in instalments.
Use of cooperatives
This is common in high-density suburbs. Members pool their resources by making regular payments. The cooperative buys stands or builds houses over time until all members are catered for.
Local authorities
These may also sell residential stands if they are available. There was a time people acquired stands commonly known as “in-fills” from local authorities.
Government housing
developments
Funds permitting, a Government may also build residential units for its employees or citizens. You might be aware of some flats built by Government and sold off to civil servants some time back. This was quite helpful.
Peri-urban stands
There is also a trend which is emerging whereby people who cannot afford stands or houses in cities are going to residential areas just outside cities. For example, in the case of Harare, there are many housing developments in areas such as Domboshava, Seke, Norton, Goromonzi, Marondera, and so on.
Start somewhere
You may not have the means to acquire your dream house right away. You may consider starting somewhere you can afford and then upgrade as you go. You can buy a stand or standard house in a good suburb and then work on it as your resources improve.
Do not leave it until it is too late in life. You can seriously disadvantage your family. For example, regular shifting from rented premises can disrupt social bonding and sense of belonging. Imagine what can happen to your family in the event that you pass on without securing accommodation for them or you have to move out of company accommodation upon termination of employment.
You are advised to carry out thorough due diligence before transacting to avoid falling into the hands of property fraudsters.
Godknows Hofisi is a legal practitioner, chartered accountant and corporate rescue practitioner. He is a consultant in deal structuring and tax. He writes in his personal capacity and can be contacted on +263 772 246 900 or [email protected]
