Private Sectors Prioritizing Housing

Once again a leading financial institution, First National Bank is assisting Gauteng's Department of Housing in its mission of providing decent houses to its citizens.

First National Bank and the department celebrated the R800million housing development on the eve of June 16. This project is financed by FNB to build in excess of 3 000 homes at a Soweto suburb to be known as Glen Ridge – currently known as Protea Glen Ext 16.

This joint venture is a public/private partnership that aims to help lower-middle-income earners with access to affordable housing. “The shortage of basic housing in South Africa is a serious social problem facing our young democracy and we are fully aware of the pressing need to provide housing for the people of South Africa .”

“We are excited about the active role we are playing to provide descent housing to potential home owners through our partnership with government and property developers,” said FNB CEO Michael Jordaan.

This housing project will cater for first time home-owners who earn between R1 500 to R7 500 per month. The first batch of houses will be ready for occupation between September/October this year. The entire project is expected to be completed by 31 December 2008.

Each unit consisting of three (3) bedroom and one bathroom will cost R168 000 (all inclusive). This means through FNB's0 Smart Bond End User Financing Product - individuals targeted by scheme will have an easy access to a mortgage which include a five-year fixed rate.

This will also result in fixed monthly installments for the same period, affordable life insurance with no medical checks required and full loan amount plus bond costs. In addition, prospective homeowners will be able to apply for government subsidies to help finance their house.

The project will not only help provide houses for more than 3 000 families but will help facilitate further infrastructural development such as schools and clinics which are a prerequisite in building sustainable communities.

During her address MEC for Housing, Nomvula Mokonyane said that “We want to thank FNB and its board of Directors and other stakeholders for ensuring that the dignity of our ordinary South Africans is restored. It is for this reason that together with the private sector we have taken upon ourselves to ensure that the people of this country are provided with decent shelter”.