Home ownership is just a dream for many Zimbabweans. In recent years the dream has slipped further away from the grasp of many as costs like acquiring land and building go higher by the year.
OGatsheni Architectural and Engineering has made owning property a little easier for South Africans with their Property Lifestyle Stokvel. Stokvel is a South African word that refers to a savings or investment society to which members regularly contribute an agreed amount and from which they receive a lump sum payment.
The stokvel concept is quite popular amongst women in Zimbabwe and itâs also known as âclubâ or âroundâ. Most of these “clubs” or “rounds” are used to acquire anything from groceries in bulk to cars and household furniture. Some women also use such funds to start businesses.
The oGatsheni Property Lifestyle Stokvel functions much like the classic âclubâ or âroundâ. Members are bundled in to clusters of 8 according to the premium payment chosen. Premiums range from 3 500 Rand per month to 15 000 Rand per month. These premiums are paid over 8 years and a member gets a house at the end of each year.
The houses are allocated on a âfirst registered first servedâ basis. However, they do not officially get to claim their houses until the 8 years are over and everyone has paid their full share of premiums. OGatsheni Architectural and Engineering facilitates and helps members acquire, design and build their properties.
This marketing strategy uses a common relatable concept to encourage people to view property ownership in a way they probably wouldnât have under normal circumstances. Acquiring property is a concept that may seem far for many. People often wait for a time when they feel they can afford to make such decisions. They wait until they get better jobs or make enough income to save their money.
The oGatsheni Property Lifestyle Stokvel also has the advantage of no debt. Unlike mortgages or other house loans that have people paying premiums over long periods of time at high interest rates, this concept is just as good as saving money in a piggy bank. Being part of a group also makes one accountable and the chances of misusing the saved funds are lessened.
In a country like Zimbabwe property stokvels would be a great way for people to be home and commercial property owners. Yet the state of the economy makes this idea difficult to implement for the majority of people. The rate of unemployment is high meaning much of the population does not have a stable income. People resort to saving up to buy land then proceed to build their houses in phases and over prolonged periods of time.
The premiums charged would have to be very high as land in Zimbabwe is overpriced. A stand (piece of land) in the high density suburbs can cost between 8 000USD to 15 000 USD or more. A stand in the low density suburbs can cost anything between 100 000USD and 1 000 000 USD depending on size and location. This is before designing and building the house. OGatshenisâs property stokvel premiums start from as low as 3 500 Rand. Meaning after 8 years of premiums one gets a fully built house for 336 000 Rand (22 400 USD). Much of these premiums in Zimbabwe would be taken up by acquiring the land and this would limit the types of houses members would be at liberty to build.
Seeing such ideas implemented across the boarder shows just how bad the state of our economy is. The options when it comes to building a home are very limited. Loans and mortgages are not an option for many due to the rate of unemployment. Most incomes are not stable enough to sustain the stokvel concept as most people resort to hustling as a means of earning a living. Yet home ownership is a need for a majority of Zimbabweans.