Africa-Press – Namibia. THE chief executive officer of Rent to Own (RTO), Inocencio Verde, says the ongoing Ongos Valley housing development will provide a longlasting housing solution to middle-income earners.
He spoke to Desert Radio 95.3 FM yesterday.
Verde said the current housing backlog in the country is the result of commercial banks’ high interest rates, which have kept the middle class and the low-income bracket of the country from accessing loans.
“We cater for the middle-income group, and those who cannot afford loans. If you have the money you can go stand in the queue and get your loan,” he said.
Verde said the development would also assist the government in dealing with the housing shortage in the country.
His sentiments come at a time when statistics from the Shack Dwellers Federation of Namibia show close to 900 000 Namibians live in shacks countrywide and are faced with daunting challenges to buy their first house.
“We are more concerned with those people who get paid at least N$15 000 and can save at least N$6 000 a month in rent. They can use that same amount to acquire a house in the rent-to-buy concept,” he said.
“We also have another concept called rent-to-retirement, which caters for the over 50-year-olds, who are considered risk clients by the banking system. These are people who have enough to buy a house, but cannot afford loans.”
Verde said initiatives like the rent-to-buy concept could help the majority of the economically productive labour force enter the property market.
He said the housing issue is worsened by a lack of initiatives to build low-cost houses catering for those in their target salary bracket.
“What I know is that if you want a N$2 million house right now, you will get it, but the question is: Will you be able to get a N$400 000 house? The answer to this is no. That is where we come in to fill the void of the low-income and middle-income earning bracket,” he said.
Verde also allayed fears that potential first-time homeowners may lose their hard-earned cash in the process of acquiring houses through the rent-to-buy option.
The RTO chief said they have also created a safe and secure space where homeowners can see returns on their investments.
“Most people have never been to Ongos Valley and will always complain that it is Havana, but what we have done here is we have created a safe space where homeowners are comfortable.”
According to Verde, the rent-to-buy concept also creates a window of opportunity for middle-income first-time buyers to invest their income in acquiring assets.
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