Housing

Housing

Prelude

Housing is a cornerstone to unlock the program and new growth in SA and Africa:-

There are two elements, the one delivers new economic growth the other major fiscal savings.

Firstly the new economic growth via the introduction of the:-

  •  new entry-level housing and
  • Migration housing options for mining and agriculture.
    • The estimated value of this exceeds initially seven billion rand with a longer term growth option of over thirty billion.

Secondly new concepts in the RDP and GAP housing market.

  • The proposed changes here will not necessary result in new additional construction, although we do foresee that there will be. Especially due to the fact that people will be able to acquire larger units.

The real benefits are fiscal benefits

  • If these concepts are applied it willresult in savings across the current housing demand on the government’s side and  savings in excess of- A hundred and ten billion Rand

a) The direct program background

Housing was the start of the Agri2000 program. To every family the number one asset is to own a house.

  • We recognize the challenges people face to provide for their families a home .
  • The pioneering work in this context was done by DIY Industries trading as Veneer Tech.
  • See www.vtsa.co.za for details.

Agri2000 has introduced two terms:-

  • Entry level housing and
  • Migration housing.

To deal with the challenges of people who do not have houses or are working away from home.

And to give substance to both the needs of our people in these segment, and the goal set by President Zuma to upgrade 400,000  informal units.

b) Entry level housing.

In South Africa there are over 2,7 million families that do not have a home of their own, living as squatters in camps or in backyards paying high rents to other people. In this regard a person have to give credit to Government for the houses delivered to date.

This is also the same picture in most of Sub-Sahara.

Africa is the one continent that has the recourses to house all its people, it is time new thinking is applied.

c) Migration housing

Worldwide the economies of all countries are in a process of adjustments where urbanization, and new economic developments result in a shift in work availability.

  • This forces many people to migrate, looking for work to better themselves.
  • At the same time there are people who cannot always find work at the place they call home and who has to work in other regions.

Both these to aspects will in future be key drivers for housing in Africa and SA.

Migration workers in SA are mainly in the mining and agricultural sectors.

d) RDP and GAP housing market

The fiscal benefits achievable in this market segment are through new concepts and options that will be introduced via the contractors development programs.

What is important to note, is that many of these are SA developed options that offer both

  1. Strong Export opportunities and
  2. Opportunities for major Bee new businesses.

Across the full construction and building sectors.

From agricultural produce processing facilities, industrial, hospitality, housing markets (From entry to up market), government and public facilities.

e) Benefits

In financial terms

  • Entry-level and Migration housing options for mining and agriculture.
    • The estimated value of this exceeds initially seven billion rand with a longer term growth option of over thirty billion.
  • RDP and GAP housing market.

    The real benefits are fiscal benefits in excess of- A hundred and ten billion Rand.

The overall benefits

The migration housing options introduced under Agri2000 are designed to meet the needs of our people who find themselves as migration workers.

The main benefits are that the units allow:-

  • Affordable quality housing.
  • It allows people to acquire an asset as to just paying rent.
  • And it provides quality community development on  sub-contracted land where permanent developments cannot always be used.

Creating therefore a win win option and economic empowerment for our people at entry level.

DIY Industries sees the entry level and migration housing introduced by them as industry development platforms for the future.

For example it:-

  • Establishes true low-carbon housing options, that are
  • Manufacturing based.

Therefore combining environmental and sustainability as housing options.

More important it allows for the leveraging of housing through manufacturing.

But ultimately it is aimed at providing a new approach for quality housing for our people at entry-level or migration.

d) Mining and agriculture

These solutions also take into account the needs in SA of the mining and agricultural sectors.

Both these two sectors have for various reasons to date not benefited form the post apartheids reconstruction RDP allowances.

We believe that in this regard it creates an opportunity for Government, Mining and Agriculture to provide win win options to our people.

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