New player bets on low income earners

RYAN CHIGOCHE

A new player in the property market Chuma Claddagh is betting on low income earners and flexible terms at its Marondera project.

The project will see residential stands up for sale in the second phase of the programme.

The residential stands will be targeting the local industry wage earners with payment terms promoters say are flexible.

Developers in the residential property market are asking for between 30-50% deposit on unserviced stands albeit operating in a country with a weak banking system characterised by high interest rates and lack of mortgage funding.

Asking for such a deposit makes it almost impossible for an average earner to even purchase a residential stand.

The soon to be opened Chuma Claddagh Marondera project will see potential owners paying US$15 000 with an initial deposit of $600 and $200 monthly installments payable over a period of 6 years.

With phase one of the project already complete  phase 2 which is going to be open for the Zimbabwean public is envisaged to have commenced by December 2022.

Speaking to Business Times, the founder Anthony Mcmullen said the deposit of $600  for one to get a residential stand gives his company a competitive edge given the current market rates of around 50% deposit.

“When I got here last year we looked at the other players in the market and looked at what they were offering extensively to the extent that I realised that to purchase a stand in Zimbabwe the average industry wage is not making it possible to do that.

If a stand which we are launching publicly at US$15000 and in the current market rate where our competitors are asking 30 to 50% deposit  so you maybe looking at US$7500 just under deposit. So how can someone with an average wage of  US$300/400 a month be able to raise the US$7500 deposit, given their monthly expenses? Saving 50% is not possible,’’ Mcmullen said.

He said a number of property developments happening in the market lack infrastructure such as roads.

The Marondera development project will have a gated community of 160 residential stands that are fully serviced. The minimum size being 300 square metres with the maximum being 1000 square metres.

McMullen said his company was in the process of developing similar properties in Chitungwiza and Masvingo. The Chitungwiza project will come on board next year, he said.