Housing demand - a solution for Africa, using Namibia as a model

HEINRICH SCHROEDER WRITES:

The current massive housing pre-sale system earmarked from 2018 to 2030 brought upon by the lack of supply of dignified affordable housing units for the Namibian nation has to be carefully scrutinized before development takes place.

Considerations which have to be carefully thought through include the following:

Market knowledge is a key criteria in order to ensure that there is a return on investment. Are the housing units affordable and will bank mortgage loans be available and be provided by financial institutions?

We need to understand the population growth throughout the 14 regions and conduct the necessary demographic analysis in order to establish the demand in rural and urban areas for dignified housing units. Methodology for the 14 regions must have the entire housing delivery system under control by the authorities.

A cluster analysis needs to be conducted through all the 14 regions in order to ensure that potential new home owner's needs are understood.



DEVELOPMENT MASTER PLAN

When developing the Namibia Government Housing Policy, we need to incorporate the following:

a) Develop a mortgage and finance “help to buy” scheme. Tailor make mortgage finance home loan packages to ensure affordability.

b) Good planning in order to increase the supply of homes which are affordable. The average current home

price should start from N$120K for a 50m² dwelling with tiled roof and basic necessities. (Top structure.)

c) Fine tune and minimize regulatory burdens. Removal of unnecessary bureaucratic Red Tape.

d) Raise standards in order to protect home owners/mortgage loan providers. (NHBRC Namibia –“Namibia Home Builders Registration Council”) home warranty. Is it regulated by law (mandatory), or should it be voluntary?

e) Introduction of housing finance support systems. Your category, buyer/builder (combination). Definition of annual repayments. Is it more than 50% of your annual income? What are the current mortgage loan

providers lending criteria, and do the existing criteria (income and ­expenditure balance sheet) need to be revised?

f) Home maintenance policy. Association of a housing warranty structural and maintenance insurance, 5, 10, 20 year insurance policy for the home owner. Should incorporate a clause whereby the home owner is

covered against repossession by mortgage home loan providers.

“No more auctioning of homes”. The policy covers the remaining outstanding balance owing on the property.

g) Definition of guarantee default. Quality is important, not just the cost value of the housing unit ­delivered. We need to develop a development model which contains all terms and conditions of the ­insurance policy.

h) Examine current criteria for credit rating and guarantee management.

i) Understanding the typical life cycle of home transfer and ownership.

j) Create a platform for the Namibian Housing Market. Create mini smart cities (Learn, Work, Live and Play).

k) Monitoring the performance of selected builders. Training seminars and registration of licensed building

contractors and inspectors.

l) Construction performance standards. Implementation of a national building code for all the regions.



OBJECTIVES

The objectives of a national building code should include but not be limited to the following:

• Human health and safety

• Structural sufficiency

• Energy efficiency

• Competency evaluation of contractors

• National data base of registered home builders.

In the true spirit of Harambee

May 2018.