Govt to subsidise BHC�s new housing scheme

Lekopanye Mooketsi | Thursday October 23, 2014 15:37

Speaking at the just ended Property Expo conference, BHC Marketing and Research Manager, Mookodi Seisa revealed that the new scheme will be known as the installment purchase scheme.

According to Seisa, the scheme would be different from the Tenant Purchase Scheme as it would target those who aren’t included in the Self Help Housing Agency (SHHA) scheme but also do not qualify for mortgages.

Siesa noted that this would be the first time that the company is subsidised by government. 

“There is a mistaken belief that BHC is funded by the government.  This is not the case. That is why when we set the prices of properties, we need to consider all the expenses that we would have incurred,” he said.

Seisa further said BHC had embarked on this campaign to promote home ownership in the country. He said this scheme was targeted at BHC’s sitting tenants. “It is aimed at encouraging tenants to consider buying houses that they have been occupying, even if it’s for more than 20 years,” he said.

He added that if the parent could not afford to buy the house, an arrangement would be made with the children to purchase the property.

Seisa revealed that since the campaign kick started, 1500 houses had been sold.

He further said BHC had sold its property at relatively below market prices. A low cost BHC house costs around P400,000 while a similar house in the property market would sell for P700,000.

Seisa further said the corporation is faced with challenges that include sourcing and servicing of land since BHC is treated like any other entity when they apply for land allocation. He said as a parastatal, BHC was controlled by the government, which made it difficult to increase rentals without government’s go ahead. He noted that this had resulted in their rentals remaining stagnant in the past 10 years.

Seisa further told the conference that they had formed partnerships with the private sector in some projects like the Gallo Mall in Francistown. BHC owns the plot were the mall is built. Through similar partnerships, other areas where there were residential units have been converted into commercial entities.