Banks eye developing low-cost housing

Banks eye developing low-cost housing

SOUTH African banks are taking the initiative to drive business in the low- cost housing arena by buying land themselves and getting it zoned, but they are being held back by delays of three years in getting plans approved.
While there is a profit motive behind the move – some banks are seeing business of R5- to R6-billion in this area – and they charge interest on loans of about R400000, a quicker move into this direction has an enormous social economic imperative.
First National Bank chief executive Michael Jordaan said 240000 families could qualify for low-cost housing right now, but the problem was a lack of supply – for every one house on sale there are seven potential buyers waiting to buy.
Because of the delays in getting everything approved – from zoning to roads to setting up electricity with Eskom – developers are unable to fund the projects, which is why banks have stepped in to buy, zone and set up bulk services.
Jordaan said unblocking supply was a key to solving many of the country’s ills, as once people owned homes it developed the middle class – the lifeblood of an emerging economy. It then flowed through to ensure better education for children who have roofs over their heads and sustainability of jobs as people want to keep their houses.
“We have to unblock supply,” Jordaan said.
FNB has 22% of new business in this area, behind Standard Bank, but wants to grow if it could it as it is a sustainable business. An interesting fact is arrears at this area of the market are lower than those in higher- earning areas.
The low-cost housing arena is also an area where Absa is looking to play a more active role as well.
Absa entry-level banking managing executive Lawrence Twigg has noted that 20% of personal loans are related to improvements on houses bought through the low-cost housing unit. – BusinessLive

moladi at www.moladi.net

Keywords - ABSA, FNB, Standard Bank, low cost housing, moladi, banks, development, winner, award, alternative, backlog

Men's Health - Best Man Awards 2009

Men's Health - The magazine men live by

MENS’S HEALTH SOUTH AFRICA’S BEST MAN AWARDS 2009


Leading the Pack
Best Man was first established by Men’s Health in 2003 with the objective of recognising South African men who are making a difference in society today. These men are leaders in their fields; they inspire us in our daily lives and create unique opportunities for all South Africans to reach their goals and develop themselves.
Finalists were selected after a public call for nominations and direction from a panel comprised of specialists in the respective categories and finalists from previous years. These finalists were considered based on the iconic status achieved in their area of expertise, as well as the difference made in everyday life for the good of society. Winners were selected by Men's Health readers via the website and the magazine.
It is once again that time of the year where we acknowledge these men - the leaders in sport, business, science and technology, arts and culture, media and public service. This year’s gala event will take place in Johannesburg on 11 June 2009.” http://www.menshealthsa.co.za/static/bestman2009


Science and Technology Catogory


“A true leader and innovator in the field of science and technology, this is a man who is forging a new path, finding new answers and breaking ground.”







Science and Technology Catogory Best Man- Hennie Botes – “…founder of moladi and the inventor of patented moulds that allow the rapid erection of low-cost, labour-intensive quality houses.” Creating the much talked about employment




Hennie Botes CEO of moladi - Best Man Awards 2009