Collective buying: Opening new doors to home ownership
In the evolving narrative of financial inclusion and economic empowerment, the launch of FNB Namibia's Collective Buying represents more than just a new product, it marks a shift in how we conceptualise homeownership, community, and economic mobility.As FNB Namibia economist Helena Mboti notes, "In developing economies, housing is often about inheritance rather than investment, leading to stagnant markets".
This is particularly true in Namibia, where homeownership remains out of reach for many due to structural inequalities, limited access to capital, and soaring property prices. Yet, where barriers exist, so does the opportunity for innovation.
Collective Buying is FNB's answer to one of the most pressing challenges facing aspiring homeowners today: affordability. By enabling up to 12 individuals, whether family, friends, or members of a formal investment group, to pool resources and co-invest in property, FNB is rewriting the housing market's access rules.
Collective strength
This model opens doors for those previously priced out, allowing them to leverage collective strength to pursue a shared goal.
As Mboti explains, “For households otherwise excluded from the housing market, collective ownership provides a stepping stone to property access. It can help bridge the wealth gap by enabling lower-income individuals to participate in the real estate market, but it is not a cure-all for wealth inequality.”
Mboti says that the impact on bridging wealth inequality can be found in the broader economic activities surrounding homeownership. “The positive wealth effect from owning property can increase consumer spending and confidence, stimulating broader economic activity. The increase in demand for housing also creates jobs across various sectors, from construction to real estate services.”
Shifting paradigms
The concept of joint ownership isn't entirely new; it has long existed in marriage and family settings. Its formal expansion is new: Collective Buying allows multiple individuals to co-own property with clearly defined equity stakes. It challenges conventional ideas about homeownership, offering cooperation as a competitive advantage.
Collective Buying signals the possibility for young professionals to partner on a rental property, or for friends to purchase a holiday home together. More than that it says: You don't have to wait until you have enough on your own. You can start building together today.
However, this model isn't without complexity. From a behavioural economics standpoint, shared ownership requires high coordination and trust. Mboti cautions that "social and cognitive biases, such as the tragedy of the commons, can impact the success of collective ventures. Each person may try to maximise their benefit without considering the group, ultimately depleting a shared resource that depends on mutual care."
Growing together
That's why legal and financial clarity is critical. Co-investors must put robust agreements in place from the outset, protecting everyone's interests and ensuring long-term stability. With the proper structure, Collective Buying can succeed financially and socially, strengthening relationships and reinforcing community ties.
FNB is committed to finding innovative ways to help more Namibians navigate homeownership. Collective Buying invites us to reimagine what homeownership means—and who gets to participate. In this model, inclusion becomes innovation. In buying together, we may discover new ways of growing together.