A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Some observations on informal subsidised housing market in Cape Town
One of the primary benefits of homeownership in an expanding market economy is thatof wealth creation through the capital appreciation of the dwelling unit. In many marketeconomies, homeowners have most of their personal wealth tied up in the house in whichthey live, making homeownership preferable to rental. The housing subsidy in South Africais built on the premise of building units for the amount of the subsidy using the model of onehouseone-plot, and making the subsidy available to people in the lowest income group.While the selling of non-subsidised properties is an accepted practice in the propertymarket, it does raise important and new questions in the case of the subsidised housing.Selling of subsidised units, in many instances, starts within months of taking possession of theunit and at a price below the replacement value. The article attempts to respond to thefollowing questions: How prevalent are the sales of subsidised housing? How are the unitssold: legally or illegally?The study was conducted in the Cape Town Metropolitan area. One important finding wasthat most of the transactions happening with the subsidised housing are illegal transactions.The research also shows that the benefits gained by homeownership in the low-incomecommunities does not lend to secure tenure and does not render the same benefits ashigher income groups. The findings should encourage the government to introduce moreappropriate housing options and alternatives to homeownership.
Some observations on informal subsidised housing market in Cape Town
One of the primary benefits of homeownership in an expanding market economy is thatof wealth creation through the capital appreciation of the dwelling unit. In many marketeconomies, homeowners have most of their personal wealth tied up in the house in whichthey live, making homeownership preferable to rental. The housing subsidy in South Africais built on the premise of building units for the amount of the subsidy using the model of onehouseone-plot, and making the subsidy available to people in the lowest income group.While the selling of non-subsidised properties is an accepted practice in the propertymarket, it does raise important and new questions in the case of the subsidised housing.Selling of subsidised units, in many instances, starts within months of taking possession of theunit and at a price below the replacement value. The article attempts to respond to thefollowing questions: How prevalent are the sales of subsidised housing? How are the unitssold: legally or illegally?The study was conducted in the Cape Town Metropolitan area. One important finding wasthat most of the transactions happening with the subsidised housing are illegal transactions.The research also shows that the benefits gained by homeownership in the low-incomecommunities does not lend to secure tenure and does not render the same benefits ashigher income groups. The findings should encourage the government to introduce moreappropriate housing options and alternatives to homeownership.
Some observations on informal subsidised housing market in Cape Town
Karam, Aly (author)
2007-11-30
Town and Regional Planning; Vol. 52 (2007); 38-45 ; 2415-0495 ; 1012-280X
Article (Journal)
Electronic Resource
English
DDC:
720
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