SA Affordable Housing January - February 2019 // Issue: 74 | Page 4

EDITOR’S COLUMN Solving affordable housing through innovative thinking Homes are expensive and – with increasing costs on everything from petrol to food and schooling – they are only going to be even more unattainable for those with minimal incomes. This month we take a look at some ideas around financing affordable homes and the issues in trying to make safe, comfortable houses available for the majority of the population that currently battles to find a place to stay. T his month’s issue will prove innovation around finance is ultimately going to be more important than government simply throwing more and more money at the problem. With a little clever thinking companies are making a profit while also filling a vital need, while government’s transition from construction subsidies to buyer subsidies will inevitably lead to higher quality and better delivery in the sector. There is still a lot we can do though to make finance easier to access. In the US some states are mulling over the potential for providing second ‘silent loans’ on homes to cover the deposits that first-time buyers don’t necessarily have. Under this system if buyer secures R300 000 at the bank for a R400 000 home, then government will step in to loan the difference and will only claim the return of the loan when the home is sold, potentially with a small profit calculated on the percentage of the property it owns. Another idea that has been put forward is for rental properties to set aside a portion of each month’s rent and – if the tenant stays for a certain number of years – they receive that portion back at the end of the lease period to use as a down payment on a home of their own. With a little clever thinking companies are making a profit while also filling a vital need. The options are as varied as the challenges; it’s going to be up to those of us in the affordable sector to think outside of the box. [email protected] Send your article and high resolution images to: Send your article and high resolution images to Warren Robertson: [email protected] [email protected] or call [phone] for more information. or call [phone] CONTACT US: CONTACT US: [phone] www.saaffordablehousing.co.za www.saaffordablehousing.co.za 2 JANUARY - FEBRUARY 2019 www.saaffordablehousing.co.za