An affordable housing development with a rent to buy financing model has been earmarked for the Bridge City precinct.
The development will see more than 350 units being developed, with the first ones going up for sale towards the end of next year.
Bridge City, a 56 hectare mixed use precinct, has broken numerous moulds, partnering with the eThekwini Municipality to create a polycentric urban metro that seeks to balance the needs of the residential, commercial and industrial markets.
“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.”
In partnership with the city, Tongaat Hulett has redefined how astute spatial planning can have positive socio economic benefits.
Construction of the affordable housing development, covering nearly two hectares in the north west corner of Bridge City, will be undertaken by property develop er Calgro M3, with the Chartwell Group offering financing.
The 356 flats, 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.
Verbaan said the rent to own financing option was designed for aspirant homeowners who are not able to afford full loan repayments. “We offer aspirant homeowners a three year period in which to achieve ownership status,” he said.
“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.
“In addition, we offer benefits such as zero deposit and competitive interest rates,” Verbaan said.
“We are committed to processing applications as speedily as possible, with qualifying customers able to move into their own home within two weeks of applying,” he said.
Construction on the site is set to commence soon, with occupation expected about 15 months later. Verbaan said Chartwell would start accepting applications in the third quarter of the year and that tremendous interest had already been received from people aware of the development.
The housing development is a short distance from the 48000 square metre Bridge City shopping centre, while the precinct also includes a 500 bed regional state hospital which will open next year, a regional magistrate’s court and a 150 bed private hospital.
In addition there is a major trans port node which includes an under ground rail station and bus rapid transport BRT terminus for the GO!Durban Integrated Rapid Public Transport Network IRPTN , which will greatly enhance Bridge City’s connectedness.