Rent-to-own Policy to be Rolled out this Year
Move away from renting to ownership. That’s the mindset change the Minister for Housing and Local Government Maciu Katamotu will continue to advocate to Public Rental Board (PRB) estates. He was speaking during the ratepayers’ consultation at Churchill Park in Lautoka last Friday. A participant shared about how he had opted to rent a PRB flat at Kashmir Tavakubu in Lautoka.
He told the minister that after checking with the PRB, he was in
formed that the flats were out for tender and for auction.
“From the previous minister, they encouraged transition,” the participant added.
We start with PRB, save money and give time for us to build a house and move there to allow new tenants to move into PRB flats. That was the process.
They came up with that plan because some tenants living there are from the third generation. Mr Katamotu maintained his stance laid out last year in Parliament where they would reintroduce plans to the old scheme.
“That question has got to do with
housing. It is clearly stipulated in the 2013 Constitution.
“For those who are living in the public rental board flats, we are going to reintroduce the plan to the old scheme.
“That means if you are renting for sometime, pay an amount that will help you acquire that flat. It is a Rent-to-own scheme. It is something happening overseas.”
Rent-to-own is a contractual agreement between a tenant and a landlord where the tenant pays rent monthly while the lease is in effect and has an option or obligation to buy the home when the rental period concludes.
The minister is hopeful that the scheme will be introduced in the next three months.
He gave examples of tenants who have been living in PRB flats for generations.
“One in Suva for 33 years. They have been renting for the past 33 years.”
The other initiative is the rent-tobuild a home.
The minister clarified that Tavakubu Phase 2 is going to be developed soon.
He did not indicate a timeline for the development to be completed.