Since 1994, the South African government’s national housing programme has completed an estimated 3.4m housing units and handed these over to the lowest-income families in the nation. An estimated 2m of these houses are formally registered on the deeds registry, and subsidy housing stock now accounts for just under one-third of all formally registered residential properties in SA. For the households who were fortunate enough to receive a subsidised house, it is probably the most valuable asset they will ever own.
In the context of Covid-19, this asset could provide valuable support to low-income households, improving their resilience and broadening their options for responding to the crisis. It could also be the key to unlocking productivity growth and private investment in an economy after Covid-19 – something we will very clearly need.
Except, in many cases, this value is inaccessible. Too many housing assets are dead capital, to use the terminology of Hernando De Soto Polar, the Peruvian economist. In lower-income neighborhoods across SA, ownership as reflected in the deeds registry is a far cry from reality. Most often the de facto ‘owner’ of a property does not match the person officially listed as the owner on the title deed. This may be the result of off-register or informal transactions facilitated by community based organisations such as street committees rather than conveyancers, or housing assets remaining in deceased estates that are never wound up.
Bu hikaye Finweek English dergisinin 8 October 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 8 October 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.