BHC home ownership campaign gathers pace

Pauline Dikuelo | Tuesday August 19, 2014 17:00

 

The corporation’s marketing manager Pinkie Tau told Mmegi Business that the campaign is progressing very well as many people have shown interest in buying the houses they have been renting for years.

“After we educate them about the flexibility and advantages of owning houses, a lot of people have come forward. “Usually we invite the banks to our weekend campaigns so that they can also shed some light on their flexibility to the people,” she said.

But she would not give statistics on the uptake of the campaign.

She said most people were not aware of the nine percent interest rate, which she said is the lowest ever to be experienced in Botswana, making it affordable for people to buy their own houses.

According to the Real Estate Institute of Botswana the prime rate has dropped from 16.5 to nine percent in the last five years making it more affordable to access mortgages. 

“Previously most banks did not offer the 100 percent mortgage loans something that they are doing now. Many banks have come forward to make the process conducive and affordable,” Tau said. Currently the First National Bank, Stanbic bank, Banc ABC, Standard Chartered Bank and National Development Bank are involved in this campaign. According to Tau, they have an agreement with these banks to help people buy properties.

The one year campaign which is expected to come to an end in March next year is available to anyone who has been renting the BHC houses anywhere in Botswana. She added that there are less youth involved in this campaign because mostly it is their parents who have rented their properties. She is of the view that they could play a part by encouraging their parents to buy the houses, as it will benefit the whole family at the end.

Since the launch of the campaign Tau said that they have been going around the country trying to sensitise the public about the importance of home ownership. Areas covered so far are Francistown, Gaborone and Lobatse. The Minister of Lands and Housing Lebonaamang Mokalake also recently urged people to invest in property as he regarded housing as a critical basic need and a perquisite for national socio-economic development.

Speaking at a recent BHC media workshop, the minister noted that they are not only currently looking at ways of encouraging and supporting home ownership in the society but also ways to encourage innovations in the mortgage market while adequately protecting consumers as well.