2018 EJRNL PP BASHIR OLANREWAJU 1.pdf
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Terbatas Perpustakaan Prodi Arsitektur
» ITB
Terbatas Perpustakaan Prodi Arsitektur
» ITB
Purpose – This study aims to identify and establish effective housing financing concepts to be adopted
by government in achieving its mandate of providing sustainable affordable housing for the poor to
decrease the building of shacks, as well as proposing solutions to the housing deficit in South Africa. A
rise in demand and shortage in supply of housing calls for the need to address issues of affordable
housing in South Africa, and developing countries in general, to ensure a stable and promising future for
poor families.
Design/methodology/approach – Literature has revealed that the South African government, at all
levels, accorded high priority to the provision of low-cost housing. Thus, government has adopted subsidy
payment as a method of financing affordable housing to ensure that houses are allocated free to the
beneficiaries. This also addresses the historically race-based inequalities of the past, but unfortunately, this
has not been fully realised. This study uses a sequential mixed method approach, where private housing
developers and general building contractors were the research participants. The qualitative data were
analysed using a case-by-case analysis, and quantitative data were analysed using a descriptive statistical
technique on SPSS.
Findings – The results of the qualitative analysis reveal a gross abuse of the housing subsidies system by
the beneficiaries of government-funded housing in South Africa. This is evident from illegal sale of the houses
below market value. This has led to a continual building of shacks and an increased number of people on the
housing waiting list instead of a decrease in the housing deficit. The results from quantitative analysis affirm
the use of “Mortgage Payment Subsidies, Mortgage Payment Deductions, Down-Payment Grant and
Mortgage Interest Deductions” as viable alternatives to subsidy payment currently in use to finance
affordable housing projects by the South African Government.
Practical implications – At the moment, the focus of the South African National Government is
continual provision of free housing to the historically disadvantage citizens, but the housing financing method
being used encourages unapproved transfer of ownership in the affordable housing sector. This study thus
recommends the use of an all-inclusive housing financing method that requires a monetary contribution from
the beneficiaries to enable them take control of the process.
Originality/value – The relational interface model proposed in this study will reduce pressure on
government budgetary provision for housing and guarantee quick return of private developers’ investment in housing. Government must, as a matter of urgency, launch a continuous awareness
programme to educate the low-income population on the value and the long-term benefits of the housing.