Guiding consumers since 2009

New cash raised for 30000 homes

By Staff Writer

By Xolile Bhengu

Global affordable housing specialist International Housing Solutions has raised $175- million (R1.3-billion) to build 30000 affordable housing units in South Africa.

IHS said the funding for its South Africa Workforce Housing Fund came from US and local investors and would be used to fund developers working in the R280000 to R650000 range.

The fund was created to invest in housing for rent and sale to low- and moderate-income families to meet the growing demand for affordable bond-financed housing in South Africa.

The capital funding includes $95-million from a North American pension fund and a US foundation endowment, as well as up to $80- million in participating debt from the US Overseas Private Investment Corporation .

The South African Department of Housing has a housing backlog of 2.3-million people, worsened in part by the failure of the commercial sector to provide housing stock that can be bought for about R500000.

A R42-billion public private partnership was formed by banks and government four years ago through the Financial Services Charter to create affordable housing stock, but has still to make a visible impact.

Elize Stroebel, country director for IHS, said in addition to funding developers to create affordable bonded housing, the organisation was also funding developers creating affordable rental stock in South Africa.

Stroebel said a year after it opened its doors it was involved in various projects, including a 3000-unit project in Witbank, a 5000-unit project in the Eastern Cape, and an 800-unit affordable rental project in Johannesburg’s inner city.

She said the financial injection from the US was an affirmation of international investor faith in the potential for the growth of local residential housing business.

“Investors see South Africa as a good investment and realise that they have the potential to gain good returns from the developments that are funded.”

Recent Articles

Featured Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Are you entitled to your spouse’s pension after divorce?

Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.

Retrenched – what payments are you entitled to?

In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.

Do you want to settle your debt?

You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus. 

Deals

Builders Black Friday Special

Price: R5000
When: Until 29 November 2019
Where: Online

Café Rousse Monday Special

Price: Available on request
When: Mondays
Where: Nationwide

Skye Bar Mojito Special

Price: R55
When: Until 31 December 2019
Where: Johannesburg