Cytonn’s Affordable Housing Plan Targets 10,000 Potential Homeowners

Cytonn Investments has today, 21st January 2020, launched the first Home Ownership Savings platform within a regulated collective investment scheme, Cytonn Affordable Housing Investment Plan (CAHIP).

The key objective of the affordable housing plan according to Cytonn is to building a deposit towards your housing.

The housing plan, CAHIP, has partnered with the Cytonn Money Markey Fund to provide those saving towards a home purchase with an attractive investment proposition, compared to those currently available in the market, with the target yield of 11 percent per annum.

As part of the Finance Bill 2019 that was assented to by the President on November 7th, 2019, the scope of approved Institutions which can hold savings towards Home Ownership Savings Plan was expanded to include Fund Managers and Investments Banks registered under the Capital Markets Act, effective January 1, 2020.

Speaking at the launch, Cytonn Chief Operating Officer, Shiv Arora said, “We are constantly striving to provide creative and innovative solutions in support of the government’s affordable housing agenda and Cytonn Affordable Housing Investment Plan (CAHIP) is one of those solutions.

CAHIP will provide individuals saving towards a home purchase with an attractive investment proposition, compared to those currently available in the market, and thus enhance their ability to purchase or construct a residential house.”

According to Cytonn Investments, potential homebuyers will benefit from CAHIP through;

• accessing a flexible platform for savings towards a home purchase,
• tax advantages with a reduction of their taxable income to a maximum of 8,000 shillings per month or 96,000 shillings per annum, in addition to a tax exemption on interest income earned by the depositor on a HOSP deposit of up to a maximum of 3 million shillings,
• relatively high returns compared to the market, with a target yield of 11.0 percent, and (iv) a relatively low initial investment of Kshs 1,000 and a minimum monthly contribution of 1,000 shillings.

CAHIP provides a platform that will enable individuals to develop a credit profile, as the savings made by a subscriber act as proof to a financial institution of their creditworthiness.

This, in addition, raises their chances of accessing a mortgage loan upon maturity of the savings, in addition to encouraging a savings culture which ultimately makes it easier for an individual to acquire a home by efficiently raising a deposit for a house loan.

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