Uptake of CABS housing scheme remains low despite new terms, says MD

Uptake of CABS housing scheme remains low despite new terms, says MD

HARARE, August 17 (The Source) – Mortgage lender CABS says a total 200 houses under the Budiriro housing project have been purchased through the rent to buy scheme since it was introduced last year.

CABS, partnered the Harare City Council in the $15 million project which saw construction of 2,800 houses but uptake of the units has been low since the scheme was launched in 2013.

“Raising the initial deposit has been very difficult under the current economic environment, but through the rent to buy scheme people are able to and in that regard at least 200 families have passed the phase of renting and are now paying to purchase the houses,” managing director Simon Hammond told The Source in an interview.

CABS introduced the rent to buy scheme after only 440 units were taken on the initial terms.

Initially, home seekers were expected to pay about $5,000 deposit for two-roomed houses that were being sold for $22,000 and $7 000 for the four-roomed houses which cost $27,000 with a deposit requirement of more than $7,000.

The deposit requirements were in 2015 reduced to 10 percent from 25 percent of the total house value.

CABS is extending the low cost housing development to Bulawayo at an estimated cost of $6 million.