Invest in residential properties � Mokalake
Pauline Dikuelo | Thursday August 7, 2014 12:27
Speaking at the BHC media workshop this week, Mokalake said it was important for private participation, as currently BHC does not get any annual subventions from the government to build houses.
“Usually BHC gets loans from the banks to build these houses and they have to pay back that money with interest,” he said, adding that they are currently sourcing some funds locally and internationally to be sustainable so they reduce the prices by 30 percent.
Despite the high shortage of residential accommodation mostly in Gaborone and Francistown, the private sector has so far shunned the market opting to invest in the retail office and industrial properties.
PrimeTime recently announced that it would soon venture into the residential property market after establishing its base in the retail and office space.
Mokalake stated that his ministry is working on some initiatives to promote home ownership instead of renting, highlighting the recently launched e ‘BHC Sitting Tenants Campaign’ as an example.
“My ministry, through the National Housing Policy, is currently looking at what the government can do to encourage and support home ownership, encourage innovations in the mortgage market while adequately protecting consumers as well as encouraging production and preservation of homes affordable to those with lower incomes and civil servants,” said Mokalake.
Also, the minister said they were looking at what the government can do to provide serviced land through Private Public Partnerships (PPP) with an ultimate goal of increasing access to housing.
One of the local estate giants has stated that they intend to put more focus on the residential investment, as they have been focusing more on the Industrial and Office space market.
BHC has been intent on renting their apartments for some years until recently when they started embarking on some initiatives to help promote land ownership.
BHC chief executive officer Reginald Motswaiso explained that they intend to invest in both the rental and sales market despite experiencing a seven-year stagnant market in the rentals.
Two local banks, FNBB and Stanbic recently announced partnership with BHC for the Sitting Tenants’ Campaign.
The campaign targets customers currently renting BHC houses who wish to purchase those homes. Stanbic Bank Botswana announced that they would participate as financiers in the campaign, with financing extended to the sitting in tenant as well as their nuclear family, thus allowing for increased affordability. The campaign runs until March 2015 and targets a total of 1,528 BHC properties across Botswana.