Massive Low Cost Housing Scheme: Namibia

Namibia Massive Low Cost Housing Scheme

The envisaged multi-billion dollar public housing programme that will see the construction of around nine thousand houses in the next three years will have no impact on FNB Namibia's revenue, CEO Ian Leyenaar has said. The housing development programme, understood to be a public private partnership between the government and institutional investors, including the country's biggest pension fund, GIPF, will see the servicing of municipal land, and the construction of low-cost housing in the country's informal settlements. About N$1.9 billion has already been allocated to the Ministry of Regional, Local Government, Housing and Rural Development for the 2013/14 financial year to cater for, among others, the servicing of land and improved sanitary standards in urban, peri-urban and rural areas while N$5.8 billion in total will be allocated over the Medium Term Expenditure Framework. Welcoming the move as a positive step, Leyenaar told the Economist on Wednesday that the public housing programme will have no impact on the bank's revenue despite home loans contributing 49% to FNB Holdings total revenue in the latest financial results announced by the financial services group recently. Leyenaar said: "The demand for housing is so great and the supply is so limited, and I think the project that government is initiating is a very worthy one. We are delighted to hear [of the programme] because as a country we need more housing. I think it is going to soften the market, but the demand will still maintain a relatively high thrust particularly at the entry level. I don't think it is going to materially alter the percentages where we are at the moment." However, the FNB CEO said it remains to be seen whether the massive public housing programme will actually deliver the number of houses that have so far been thrown around. FNB Namibia currently holds just under 40% share of the housing market in the country. Home loans have been lucrative business for local banks, and Leyenaar said very few people in the country default on their mortgage payments, a situation that has contributed to lower non-performing loans compared to other countries. FNB Namibia's ratio of non-performing loans to average gross advances has seen continued improvement in the last three financial years dropping from 1.9% in 2011 to 1.05% in the year ended 30 June 2013.

"It is very interesting that people in Namibia defend their houses. If there is one thing that they pay off, it is their housing, it's their core asset.
Low cost housing in Namibia

Low cost housing in Namibia

"That's why you will see, if you analyse any of the bank's results, the bad debt level in that space is quite low by international standard," Leyenaar said. He told the Economist that plans by the central bank to review the policy on mortgages, particularly second mortgages with a view to reduce speculative tendencies in the housing market, will also have minimal impact on FNB's bottom line as very few individuals have second mortgages in the country. Assistant Governor, Michael Mukete recently said the current scenario in which bank loans are dominated by mortgage assets remains a concern. He said the bank is investigating the potential usage of "forward looking regulatory tools", such as setting maximum loan-to-value ratios in granting loans for second homes. However, Leyenaar said the bank's exposure to second home mortgages is very limited as there are not many people that have two houses, adding that the bank will have no problem adhering to new regulations on the maximum amount that banks can lend on a second home loan.

Keywords: Low cost housing, Namibia, FNB, housing programme, home mortgages, demand, affordability, moladi, solution, Ministry of Regional, Local Government, Housing and Rural Development, Alternative Technology

For more on moladi

What is the cost to 3D print a house?

Image
What is the cost to 3D print a house? What is the cost to 3D print a house or rather the "walls" of a house? What is the cost to 3D print the walls of a house? Whenever there is a post regarding 3D printing of homes, we are tagged by friends and colleagues to respond to the advantages of moladi vs 3D Printing. We therefore want to make it quite clear that this post is published purely to summarise our take on the topic and to have the ability to reference these questions and statements without having to repeat what we see as inherent issues associated with the 3D printing process of houses. All of the numbers used for 3D printing cost purposes are assumed, as these cost are not readily available for the purpose of this cost example. We would invite any 3D printing entity to help with the actual numbers to take any guesswork out of the cost estimation. First 3D printing post in 2017:  3D Printing a house or is it in reality - 3D Printing Walls?    - Link The development of m
Read more

LOW COST HOUSING design concept

Image
Low cost housing - Design concept Low cost housing - design concept Low cost housing - design concept moladi is a global leader innovator and developer of low cost housing as a production system - An assembly line principal. Read more on low cost housing design concept:   Fourth Industrial Revolution | Housing Construction - Link EmpowerPEOPLE to help themselves - Link How to reduce the cost of housing construction? - Link Project Trinidad - Link Gauteng Education Department - Link Western Cape Education Department - Link World Economic Forum – Future of Construction – World Bank - Link Tanzanian court buildings modernisation - Link Back to Basics Create entrepreneurs that PRODUCE Creating JOBS Producing FOOD Producing SHELTER Producing TAXES Circular Economy Video For more housing information visit moladi design concept - Link Searches relat
Read more

Emailing: allAfrica.com Angola President Dos Santos Confident About Sustainable Development (Page 1 of 1)

— The Angolan president, José Eduardo dos Santos, Monday here said that despite the consequences that Angola may suffer due to world economic crisis, it is intended to maintain the sustainable development model and the pace of strong economic growth. In his year-end message to the Nation, the Angolan Statesman referred that it also is desired to generate more jobs and the betterment of Angolan families and citizens living standards. He reminded that the world economy lives the greatest crisis since the "30s of the past century. The world strongest economies are facing slow-down and present evident signs of recession. It is noticed a strong fall of growth of economic activity, mainly in the United States of America and Europe, which is affecting the economies of African countries. The incomes of these countries have been reduced significantly, because the most developed economies are using less and less raw materials. The supply of these products has increased in the ma
Read more