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Vantage Affordable Housing Company (Pvt) Ltd has partnered United Builders Merchant in a move that will see low-income earners getting the opportunity to build houses under a credit facility scheme called “Build one room at a time”.Vantage general manager Ms Rachel Garira told journalists at the launch of the project in Harare’s high density suburb of Budiriro that their target was low-income earners such as civil servants and informal traders.
“We noted that some credit facilities asked for collateral and title deeds which they did not have. As a financier we do not require ant of these things, all we need is an approved plan to qualify and the material is delivered within seven days,” she said.
She also said that the client will receive the building material from UBM after depositing 50 percent of the total cost of building one room while her company (Vantage) deposits the other half to UBM as a loan to the client.
Ms Garira added that this credit facility will aid Government’s efforts in reducing the urban housing backlog. UBM head of operations Mr Farai Karikoga said the approved plan will be submitted to qualified estimators to come up with an accurate bill of quantities (quotation).
He added that the joint venture was meant to provide the clients what they needed.
“We noted that some of the funds were diverted to other purposes other than the intended use. That is why we decided to provide them with skills and material,” said Mr Karikoga.
He added that clients are charged a small administration fee which is provided by Vantage while the pricing structure was pegged at favourable rates.
One of the beneficiaries of this credit facility the Mudangwe family of Budiriro encouraged people to opt for building loans with low rates.
Mrs Mikirita Mudangwe said: “People should not pressure themselves in coming up with funds to build a house at once but should do it slowly at a steady pace.”
Vantage has completed five houses to date under the scheme.
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