So many WOMF'ers are complaining about the going rates especially in the lower income group.

There are many factors, but the most important is the value of the property:

1) For starters, open land in decent areas is scares and the demands are high. Ex... Kleine Kuppe is selling up to N$ 1000 per square meter.

2) Building cost for constructing a residential dwelling are between N$ 4500 up to N$ 7000 per square meter. All this due to raw material prices.

A small unit with 2 bedrooms and 1 bath is aprox 70 sqm in size. Taking a average building price + area value brings a replacement cost of N$ 437 500. This is considering that it is a multi story building. The slab for such construction is calculated at around N$ 500/sqm.

Before I get to technical, a repayment on such investment will be around N$ 5300 / month at current interest rate. Also consider that your rental price also include the levy the landlord must pay for outside maintenance , rates and taxes which is a average of round N$ 550/month for such unit.

Rental prices are usually calculated on 1% of the property’s value. Thus the rent should be around N$ 4500/month.

Housing is one of our main needs so if it gulps up most of your hard earned money at the end of the month, blame the landlords for not being a aid organization.