Xoliswa Nogcantsi owns 14 units of flats in Yeoville – Thanks to the Trust for Urban Housing Finance (TUHF).
The company grants loans to black entrepreneurs eyeing the property market in the Johannesburg inner city.
Nogcantsi initially owned four units of flats. In 2003, she received a R350 000 loan from the TUHF, which allowed her to buy an extra 10 units of flats. “I wouldn’t be in business without the TUHF. When I settle the loan, I’ll take another one to acquire more property.”
TUHF spokesman Pressage Nyoni says the company is targeting budding property entrepreneurs and new entrants who don’t have finances and have identified buildings in the Johannesburg city to buy or refurbish.
The TUHF’s strategy forms part of the City of Johannesburg’s initiative to create more wealth and an economically viable city centre.
In partnership with the Gauteng Partnership Fund, the TUHF has set up Intuthuko equity fund, a mechanism to aid black individuals who do not have enough collateral.
It lends up to R5 million and charges 12,5 percent on the loans over 15 years.
Some of the Buildings in the central business district have been left in the care of caretakers, while the owners live overseas.
The TUHF is trying to make these caretakers the landlords by loaning them money to buy those buildings.
The company has granted R80 million in Loans, covering 67 buildings in 63 deals and 60 percent of the loans were for previously disadvantaged individuals.
This has resulted in 3 181 residential units – homes to more than 13 000 people in the inner city.
“We will not fund a deal that does not make business sense,” says Nyoni. “We want to change the property landscape so that it attracts a lot of black people.”
LOAN CONDITIONS
You can approach the TUHF directly for a loan application.
Before doing this, entrepreneurs should have identified the building, already approached the seller/owner, negotiated a good price and have already signed an offer to purchase.
Entrepreneurs must be mature and display entrepreneurial skills.
The business must be viable and show ability to handle debt burden.
It must be able to pay its utilities.
After it has paid off debts, the business must have active cash flow.
