Investment Opportunity: Low Cost Housing Project in Zambia

Zambia has a housing stock deficit of between 2 and 3 million. The project includes land acquisition and construction of 100 low cost houses for sale.

Zambia, made up of a population of about 13 million people, has a housing stock deficit of between 2 and 3 million. This deficit can be eliminated if at least 200,000 low cost housing units are built every year.

We will target three distinct customer segments namely the low, middle and high earning population both in the formal and informal sector. The business will have a deliberate bias towards the low and middle income population as our aim is to create a leading and non-segregating market for housing units at affordable rates. For the beginning, we will only concentrate on the low cost market segment before later moving on to high cost.

We are an entrepreneurial and youth driven initiative meant to provide unique and tailor products and services in real estate.

We will ensure that transparency and eliminate corrupt practices amongst our personnel. Hence as an implementation measure, prospective buyers will have to collect and complete letters of offer from the sales and marketing unit of the company. Sales will be conducted on first come first served basis.

We will offer a deferred payment structure to ensure all prospective clients are catered for. If a buyer is a good credit risk but does not have enough money, the available property can be sold with an option contract. In this arrangement, we will agree with the buyer on the selling price, a certain percentage higher than current market. The buyer would put some money down as earnest money to ensure the contract will be met.

The housing deficit will remain an issue for the next ten to twenty years unless a radical vigorous plan is put in place. A few institutions and individuals have tried to take advantage of the housing deficit but with decimal results. The National Housing Authority was specifically set up for this purpose but has not produced the desired results. They have cited funding as one of their challenges. Private institutions have also been involved like the Lilayi Housing project.

We understand that from an initial projection of doing about 1,000 houses, only about 100 houses were built and we also understand that funding was a major drawback. Given sufficient funding, the likelihood of success can be in the order of 98%. In other words, if we have sufficient funds, the project will yield returns to the satisfaction of the stakeholders and mitigation of the housing deficit.

Land Purchase (20 acres), Professional Fees, Services (grading roads, main electricity, sewerage etc.), Project Management, Commission for Estate Agents Office Costs (for 24 months), Wages (for 24 months) and Construction