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Property Reporter
OLD MUTUAL’s banking unit CABS has suffered a setback on its multi-million dollar low-cost housing project in Budiriro arising from slow uptake on its units, management has said.

The slow uptake of houses in the project valued in excess of $15 million takes a knock on CABS’ revenue budgets and return on investment.

Uptake of the CABS housing units remains low at about 36 percent since inception of the project in 2014, Old Mutual managing director Marjorie Mayida recently said.

“People are finding it difficult to pay because of various challenges,” Mayida said on the sidelines of the company’s half year results briefing for 2017. “Despite attempts to relax payment terms by CABS management, including introduction of a rent to buy option, the uptake remains low,” Mayida said.

“We have even scrapped the deposit to allow customers who have a proven track record of steady income to let the houses for a year and the payments go towards the deposits,” she said.

“This is after the realisation that the informal economy is growing,” Mayida added. By end of 2015, the group had reduced deposits for the housing units by more than 50 percent.

On introduction, CABS multimillion dollar Budiriro scheme failed to attract takers on grounds it was priced out of the reach of the targeted low income earner with units costing at least $25 300 and as much as $31 300. The project suffered a confidence crisis earlier in 2014 after media reports showed cracking housing units.

In 2014, Cabs availed close to 3 000 units of two and four-roomed core houses on land measuring between 240 square metres and 300sqm. Type B of the units is a 47sqm core house comprising of 2 bedrooms, lounge, kitchen, toilet and bathroom while the type A is a 27sqm core house comprising of one bedroom, kitchen, toilet and bathroom.

Type A+ is a 64, 81sqm comprising of the 27sqm core house, plus an additional plinth for 3 rooms. The target market was first time and existing homeowners as well as Zimbabweans in the diaspora upon meeting the CABS’ mortgage criteria.

Corporates who meet CABS criteria could also participate.