The Central Africa Building Society (CABS) has sold only 700 houses from the 2 800 constructed under the Budiriro Housing project in partnership with the Harare City Council and so is introducing a rent-to-buy scheme to make it easier to raise a deposit.
CABS, a subsidiary of Old Mutual, saw the group injecting in excess of $15 million into the project.
CABS managing director Simon Hammond said the mortgage lender is re-modelling some of the houses and launching a rent-to-buy scheme in order to offset the low uptake.
Hammond said the bank will soon launch a rent to buy scheme for the houses so that people who can’t raise a deposit can move in and raise a deposit over a period.
Initially home seekers were expected to pay about $5 000 deposit for two-roomed houses that were being sold at a total cost of $22 000 while the four-roomed houses cost $27 000 with a deposit requirement of more than $7 000.