NHE housing project starts in January
12 December 2019 | Infrastructure
The initial project saw 20 houses being built for N$10 million, but of the 47 beneficiaries that initially showed interest in making use of an NHE initiative, only eight qualified. “The pilot project was announced on various media platforms, inviting those who owns erven in informal settlements but are unable to construct houses to register at the NHE,” says the enterprise’s manager for corporate communications and marketing Eric Libongani.
The beneficiaries are the owners of erven which are registered in their names and situated in Goreangab (4), Otjomuise (3) and Khomasdal (1). According to Libongani, construction for the homes ranges from N$304 000 to N$641 000, “whereas in some instances prices include beneficiaries’ land costs and outstanding rates and taxes.” The size of the houses vary from a one bedroom to a three bedroom and they are between 34m² and 92m² in size.
The current interest rate on a “normal” home loan is 11.25% while the NHE offers the lowest interest rate of 9.25%. “All the beneficiaries are assessed in terms of NHE’S criteria applicable on a special project of this nature.”
These prices are very favourable. To illustrate, local developer Shahil Morar – who is not involved in the NHE project – said that using his own development as benchmark, a 450m² Full Title Single Residential erf with a one bedroom house averages N$500 000, while the same size erf with two or three bedrooms would cost N$695 000 and N$790 000 respectively. “For the development we are currently working on, the finishes include full bathrooms (the three bedroom unit has two bathrooms), fitted kitchens (including washing and cooking appliances), porcelain tiles, solid wood doors, a concrete tile roof and brick and mortar construction,” he said.
He added that it is important to note that the development he is currently involved in, also includes a fully serviced neighbourhood infrastructure with tarred roads, street lights, electricity, water, sewerage, and plenty of public open space.
According to the NHE website, those wishing to apply for an NHE house, may not earn more than N$20 000 per month (gross, including housing allowances and subsidies). Furthermore, those with a joint monthly income, a total of N$30 000 is the threshold as a maximum limit for applicants.