How to spend your $4,000 AUD on a house in Zimbabwe
- by admin
The new house prices in Zimbabwe are rising faster than the average wage.
How much money will it take to pay the mortgage?
What are the savings you’ll need to take on?
Zimbabwe’s new property boom has put the once sleepy economy at the forefront of the global housing market.
The country’s booming property market is fueling demand for housing, which is making a comeback in a country where many people still rely on cash for basic necessities.
Zillow, a global real estate agency, has been tracking the booming property sector in Zimbabwe.
According to Zillow’s latest home market report, the average house price in Zimbabwe rose by 4.4 per cent in the first quarter of 2018 compared with the same period last year.
It was the fastest pace of growth in a quarter in Zimbabwe since the start of the year.
Zimbabwe’s median household income is currently $1,350 a month, up by $40 a month.
In the capital Harare, where Zimbabwe is located, the median monthly wage was $2,250, up from $2.75 in the same quarter last year, according to Zellers data.
At the same time, median house prices are down 2.5 per cent compared with a year ago, according the agency.
“There are a lot of factors that contribute to the growth of Zimbabwe’s property market, including a low-cost housing market that was created by the introduction of the low-interest loans in 2013,” Zillows chief economist, David Grieve, told news.com.au.
Grieve said the recent rise in the property market was driven by the rising interest rates on low-rate loans.
He said a low rate was a key factor in driving up the cost of living.
As a result, a lot more people are borrowing from lenders to buy their houses, as opposed to selling them.
A number of lenders, such as HomeFirst, are now accepting lower-interest, cheaper loans, meaning that they can lend less.
But while that means there is a greater likelihood of borrowers who would have previously been reluctant to take out a loan are now taking on the debt, the amount of money they are borrowing will still remain high, he said.
If borrowers are willing to take higher-interest payments, then their incomes can increase, but the interest rates are going to continue to rise.
While the average income in Zimbabwe has been rising, the number of people living below the poverty line has remained stable.
For the average Zimbabwean, the poverty rate is currently 6.4 percent, according Census data.
The government’s official poverty rate was 7.3 percent in the previous quarter.
About 60 per cent of the population lives in poverty.
Rising prices in the country have also hit the working class.
With more than half of the country’s workers now in the informal sector, the housing market has become a major source of income for many Zimbabweans, according Toziero Mkhize, a senior economist at the Zimbabwe Institute for Macroeconomic Policy Studies.
That has created a huge financial squeeze for many of the smaller, middle-class households that are the backbone of the economy.
Many of the Zimbabweans who can least afford to buy a home are now renting instead, leaving some to spend the money on basic necessities, such to fuel the countrys growth, he told news-com.org.au.
“This is a situation where a large number of Zimbabweans are going from one crisis to another,” Mkhise said.
“The main driver of the economic growth has been the increase in the cost and inflation of housing.
Housing affordability has been one of the most important drivers of the growth in Zimbabwe’s economy.”
As we’ve seen in Zimbabwe, if a person’s income is not sufficient, then they are going into the informal economy and they can not sustain themselves in the labour market,” he said, adding that Zimbabwe has a “disparate impact” on different economic groups in the nation.
Government spending and investment in housing, however, is on track to grow.
On Wednesday, the government announced that the government had received $500 million in public funds from the International Monetary Fund (IMF) to fund construction of affordable housing.
The money will be used to expand affordable housing across the country, as well as to purchase new rental housing and other infrastructure, Finance Minister Robert Mugabe said in a statement.
Mugabe also said the country was working to establish a government housing fund to provide housing assistance for those who are struggling to afford to live.
This money is being used to purchase land for affordable housing, Mugabe added.
Although the government has set aside a total of $5.6 billion to purchase affordable housing and to improve infrastructure, many of those
The new house prices in Zimbabwe are rising faster than the average wage.How much money will it take to pay…