Mizizi Africa Homes has begun a phased exit from off-plan housing as it entrenches the ‘Buy, We build’ concept into its operations.
The developer has roped in a financial consulting company, One Roxas International to help prospective homeowners access funding before the commencement of housing projects.
Under this model, a home-owner purchases land from Mizizi Africa Homes, the developer processes their title deed, which the financier uses as collateral to structure a mortgage.
“They(financiers) help you(homeowners) facing financial constraints, use title deeds as collateral to settle off pending balances due allowing customers to convert their rent to payment of the mortgage. This year we are exiting off-plan projects in style,” said Mizizi Africa Homes Chief Executive Officer, George Mburu.
One Roxas International Business Development Director, Elijah Kamau said the financial consultancy firm looks at the owners profile- If he is a businessman, they appraise his financial statements to determine the individuals qualification for a certain range of credit or advise for a change in a project that will match their financial status.
“You can use that title deed initially to get mortgage finance so that when the developer is putting up your unit, you already have money to support the development. Therefore construction will take a very short time and gives you some financial relief and peace,” said Kamau.
One Roxas scope extends beyond restructuring loans to financial literacy through strategic partnerships with financial institutions like banks and helping developers come up with strategies like the ‘Buy, We Build’ concept it has structured with Mizizi Africa Homes.
“We are hoping that Mizizi Africa Homes’ subsequent developments, home owners will be having title deeds prior to construction to ease access to finances for owners,” said Kamau
Already, The developer has seen an accelerated hand-over of projects – some of which had taken a slightly longer time due to delays by customers in remitting their installment payments due-since it rolled out the new concept in January 2023.
“We are off to a new dispensation with an accelerated take-off,” said Mburu.
So far, the developer has handed over 128 housing units, of which 78 units were handed over within the four months of 2023. Peacock 1 estate is the single largest project-with 41 units- completed and handed over in April this year.