Collective home buying on the rise | Everything Property
Finance

Collective home buying on the rise

Mfundo Mabaso Growth Head at FNB Home and Structured Lending

More consumers are buying homes in groups – Growth Head at FNB Home and Structured Lending, Mfundo Mabaso, looks at collective home buying.

In the face of consistent sharp increases in debt servicing costs, more consumers are choosing to buy homes in groups. Mfundo Mabaso, Growth Head at FNB Home and Structured Lending, examines the trend.

WORDS & PHOTO: SUPPLIED

Mabaso says that the rising cost of living and high interest rates are motivating consumers to seek out alternative ways of buying homes.

He states that, “In this tough economic environment, affordable housing customers earning a gross salary of between R3 500 and R29 600 per month are increasingly buying homes as a collective to cope with high interest rates and the rising cost of living.”

First National Bank (FNB) has a value proposition that allows up to 12 people to buy a home collectively. “The total collective buying loans disbursed for the interim results for the six months ending 31 December 2023, comparing to the same time last year on 31 December 2022, saw a 36% growth.”

Mabaso says that internal data for the six-month period pinpoint Gauteng as the leading province when it comes to collective buying, closely followed by the Western Cape.

“Interestingly, while collective buying is popular in the affordable housing market, there is also a lot of up take from affluent customers and families buying holiday houses and financing semigration homes.”

“Higher interest rates might be with us for longer than anticipated, but there are different options that consumers can use to buy homes, such as collective buying.”

Top picture: Mfundo Mabaso, Growth Head at FNB Home and Structured Lending.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top

Pin It on Pinterest