BHC sells 1,528 houses to tenants

Boitshepo Majube | Friday March 14, 2014 16:58

The bulk of the houses to be sold under the scheme are in Gaborone and Francistown, both cities boasting 825 and 350 houses respectively.

BHC has however, stated that flats, town houses and government-leased houses would not be sold under the scheme. 

The BHC marketing and research manager, Mookodi Seisa said offers will be made to tenants who have been renting BHC houses for over 10 years and those with valid leases.

He said rental payment provides for immediate beneficial occupation with less long-term value to the tenant, unlike purchasing which gives long-term value.

Mookodi said this is an attempt to empower rental tenants through homeownership. “We are also extending BHC mandate,” he said, noting that it also has potential income stream and need to unlock capital.

To make the offers attractive, Mookodi said price discounts were being offered; 5.5 percent on low costs, 3.5 percent on medium costs and 2 percent on high costs.

The new scheme however does not mean BHC is abandoning the rental option.

“The selling to sitting tenants project will be reviewed quarterly, and we would like to see BHC clients responding to this campaign in large numbers as it is intended to empower them,” he said, further stating that is would run for 12 months. Mookodi also revealed that banks and merchant partners are available to assist tenants.

In reaction, the Real Estate Institute of Botswana president Modiredi Maruping said this is a good time to buy property in Botswana, as interest rates are very low at 9 percent at the moment. 

“These houses that are being offered by BHC are located in prime areas, which at the current rate one would not buy at the cheap prices being offered by BHC on the market,” Maruping said, noting that BHC is selling these houses below the market rate.

He said the properties value would appreciate with time, proving to be a good investment for owners. “Gaborone is a very good place to own property,” he said, citing that the property value in the capital city is appreciating. 

He stated that selling to tenants would not have any impact on the property market as it already has its targeted customers, which are already BHC clients.

Maruping however, called for Batswana to be educated on real estate issues and finance. “Mortgage is a very long contract and Batswana are not informed on this issues,” he said.

Other houses on offer include; 108 in Gaphatshwa, six in Jwaneng, eight in Kasane, 99 in Lobatse, 13 Mahalapye, 112 Selebi-Phikwe and seven in Sowa Town.