Maravi

Expert advises Zambians to invest in housing industry

Expert advises Zambians to invest in housing industry
By Chibaula Silwamba
Thursday December 13, 2007 [03:04]

A LUSAKA financial expert has advised Zambians to invest in the housing industry if they want to have highest returns on their investments. Commenting on the booming housing and construction industry – which has led to frequent shortage of cement - in the country, Miles Sampa who is also Finance Bank international banking director, said investment in housing had a profit return of between 40 to 45 per cent in Zambia.

“My calculations indicate that the return on housing market in Zambia at the moment is giving around 40 to 45 per cent. If you invest your money in a house now your return is about 45 per cent,” he said. [What does that mean??? - MrK]

“If I had to advise an investor local or international what product to invest in, in Zambia, at the moment that has the highest return for their money I would say invest in the housing industry. You are guaranteed of a return of about 45 percent.”
Sampa said the housing market had been a winner in the economy in Zambia in 2007.

“At the moment the investment in the bonds and treasury bills pay on average 12 per cent and interbank bank is 10 per cent but a winner in the economy in 2007 has been the mortgage market or housing industry,” Sampa said.

“The investment that is highly paying in Zambia now is housing and Zambia runs among the highest mortgage industry not only in Africa but in the world as well.”

Sampa said in the US and UK prices for houses had dropped and that was what had partly weakened the US dollar.
“Houses that were worth US $ 100, 000 now are worth about US $ 60, 000,” observed Sampa. “But in Zambia, it’s the opposite. A house that was worth K 50 million last year, today the same house is worth K120 million so the prices keep appreciating.”

Labels: FDI, HOUSING, INVESTMENT

posted by MrK @ 4:35 AM