Water connected to rent-to-own houses

Business

By ZEBEDEE GIAME
WATER PNG has partnered with the Papindo Group of Companies to fully supply water to the company’s new ‘rent-to-own’ 24-house compound in Lae’s Buimo suburb.
Water PNG customer success manager Herman Kagl said the company was happy to support this scheme because it was the first privately owned and affordable home-ownership scheme for Lae.
Kagl said Water PNG had installed water meters and connected the water to 22 of the houses.
“Water is now available so as soon as the client moves in, they can simply put on the tap and use,” he said.
Kagl said the houses come in two sizes: 84 square metres and 100sqm and are set on an allotment of 294sqm.
The homes are fenced and fully-kitted three bedroom houses that come complete with brown and white goods and boast back-up water and power-supply system.
The houses cost K500,000 each.
Tenants will have to rent the homes for two years so as to make up for the 30 per cent equity that is usually required by commercial banks.
“Instead of taking out a loan of K500,000 from the bank to pay for the property, you rent the property for either K5500 for the 100sqm home or K4950 for the 84sqm home per month,” Kagl said.
After three years, the rental that has been paid will act as equity to enable the tenant to take out a loan to pay the remaining balance of the K500,000.
The property and allotment is transferred to the tenant.
More houses will be built when the market demand arises from the initial 24 homes that are currently for rent.
PNG Power has also installed EasyPay units in all the houses.