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Matthias Ruziwe
House ownership remains one of the highest social priorities worldwide. A family that owns a home takes pride in it and has a more wholesome, healthy and happy atmosphere in which to bring up children. In my view, housing or shelter is a concern for every citizen’s well-being.
Therefore, the importance of house ownership as the underlying foundation of a property-owning democracy cannot be overstated. Housing finance systems in most major economies constitute a huge part of their financial apparatus.
In the 1960s, Singapore and Hong Kong drove their economies on the basis of massive housing and construction programmes. Housing demand depends on economic, social and demographic factors.
I list the following as major advantages of Government’s Home Ownership Scheme:
1. At an average income of US$246,50 per month (Zeparu, 2014), it is likely that most workers in Zimbabwe do not own homes. Homes are expensive, so most home-seekers take out a loan — a mortgage.
2. Few workers have huge sums of money. The scheme will, therefore, allow them to access mortgages.
3. Home ownership creates a “property-owning democracy” in which individuals have a direct stake in the economy and their country. In fact, they literally own part of their country.
4. Rather than paying rent monthly without long-term tangible assets gained, one gets to own a home when the mortgage is paid off.
Usually, mortgages are lent at interest rates either fixed over a term or variable based on a function of the bank or building society. In general, the lower the bank’s base rate, the cheaper the mortgage repayments.
Individuals taking out mortgages are, therefore, extremely reliant upon the bank or building society’s base rate.
The swift arrangement by IDBZ to float bonds is a sure sign of commitment to meeting Zim-Asset targets.
Mr Matthius Ruziwe is a Kwekwe-based human resources consultant
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