The Bridge City housing development is set to become the centrepiece of an affordable housing development through a first of its kind, rent-to-buy financing model that will further reshape the landscape that the development has already started to transform.
This 56-hectare mixed-use precinct has already broken numerous moulds, partnering with the eThekwinin Municipality to create a polycentric urban metro that balances the needs of the residential, commercial and industrial markets. Matthew Verbaan, Executive Director of Chartwell Group, says they are very excited about the opportunity to help people own a home through an innovative approach to home financing.
Broadening ownership
“The rent-to-own model has never been tried here before, but it’s the ideal way to broaden ownership while promoting the ideals embodied in Bridge City as an urban concept.” Construction of the affordable housing development, covering nearly two hectares in the North West corner of Bridge City, will be undertaken by property developer Calgro M3, with the Chartwell Group offering financing. The 356 apartments, selling from R529 000, are all two-bedroom, one-bathroom units with open plan living areas. Quality finishes include granite kitchen tops, ceramic tiles, burglar bars, security gates and built-in bedroom cupboards in the main bedroom.
Designed for aspirant owners
Verbaan says the rent-to-own financing option is designed for aspirant home owners who are not quite able to afford full loan repayments. “We therefore offer aspirant home-owners a three-year period in which to achieve ownership status,” he explains. “They do this by exercising an option to buy at the end of that period. The purchase price is fixed upfront and all rentals paid in the three-year rental period are considered payment toward the eventual purchase price.” Home buyers can also choose a 20-year instalment sale, which carries the same ownership rights as a traditional mortgage loan from a bank. Construction on the site is set to commence in the middle of this year, with occupation expected approximately 15 months later.
