David Wentzel: CEO, RBA Housing

... MONEYWEB: Let's take a step back. You create low-cost housing. What exactly is involved in that?

DAVID WENTZEL: Well, it's not actually low-cost. We define it as "affordable housing". Low-cost is about up to R40 000, predominantly government-subsidised. Then "credit-linked", between R40 000 and R250 000 units. And then the "affordable housing" market, which is fully banked from the turn-key residential developments, predominantly for black middle-class people earning a gross salary of between R10 000 and R15 000 a month.

MONEYWEB: And how do you make your money, then?

DAVID WENTZEL: Well, there are three stages in the affordable housing. The first one would be the servicing of the land, then going out, doing the prop structure development, which takes care of the project management, the submission of plans, engineer, architect, getting the sales, the NHBRC enrolment, which gives the client a five-year guarantee. And then the third step is ultimately the construction of the property, prior to handover and retention of that house. (Read the whole article...)... MONEYWEB: Let's take a step back. You create low-cost housing. What exactly is involved in that?

DAVID WENTZEL: Well, it's not actually low-cost. We define it as "affordable housing". Low-cost is about up to R40 000, predominantly government-subsidised. Then "credit-linked", between R40 000 and R250 000 units. And then the "affordable housing" market, which is fully banked from the turn-key residential developments, predominantly for black middle-class people earning a gross salary of between R10 000 and R15 000 a month.

MONEYWEB: And how do you make your money, then?

DAVID WENTZEL: Well, there are three stages in the affordable housing. The first one would be the servicing of the land, then going out, doing the prop structure development, which takes care of the project management, the submission of plans, engineer, architect, getting the sales, the NHBRC enrolment, which gives the client a five-year guarantee. And then the third step is ultimately the construction of the property, prior to handover and retention of that house. (Read the whole article...)

Moneyweb - Johannesburg,South Africa