STAFF REPORTER
PROPERTY development company WestProp Holdings is pioneering a novel housing delivery scheme, leasehold model, at its Pomona City project which makes the acquisition of property much cheaper by removing the cost of land.
The new model will be in use in Pomona’s phases two and three, chief executive officer Ken Sharpe said.
He said the new “disruptive, futuristic, innovative and unique” scheme is a “completely new feature in Zimbabwe but very common in developed economies”.
Addressing guests at the official launch of the US$630 000 multi-purpose gate house last week, Sharpe said the property owner only acquires the building and leases the land from the developer.
The property owner will pay between US$30 and US$50 in land rentals. The leases are valid for up to 50 years and can be renewed.
“The affordability is much easier when one commits resources to the built-up unit only and not the land. The cost of land has been an inhibiting factor in property ownership”, he said.
Sharpe said the scheme that is new to Zimbabwe is very common in Europe and is gathering momentum in South Africa.
“One of the unique features of the Pomona City phase 2 and 3 is the introduction of the leasehold model, a completely new feature in Zimbabwe but very common in developed economies,” he said.
The introduction of the leasehold model comes as thousands of Zimbabweans have been struggling to build houses. They are financially exhausted after buying the land.
This has seen families living in makeshift houses on their land.
The new scheme is a reversal of the norm which now allows prospective home owners to spend on the structure and lease the land on which their house is built and at very concessionary rates.
The scheme is one of the best ways of reducing the housing unit backlog. WestProp allows for the use of innovative and cheaper and robust building materials.
