FNB opens doors to home ownership
In the evolving narrative of financial inclusion and economic empowerment, the launch of FNB Namibia's Collective Buying represents more than just a new product—it marks a shift in how we conceptualise home ownership, community, and economic mobility.
As FNB Namibia economist Helena Mboti said: "In developing economies, housing is often about inheritance rather than investment, leading to stagnant markets." This is particularly true in Namibia, where home ownership remains out of reach for many due to structural inequalities, limited access to capital, and soaring property prices. Yet, where barriers exist, so does the opportunity for innovation."
Collective Buying is FNB's answer to one of the most pressing challenges facing aspiring homeowners today: affordability. By enabling up to 12 individuals—whether family, friends, or members of a formal investment group—to pool resources and co- invest in property, FNB is rewriting the housing market's access rules. This model opens doors for those previously priced out, allowing them to leverage collective strength to pursue a shared goal.
As Mboti explains, “For households otherwise excluded from the housing market, collective ownership provides a stepping stone to property access. It can help bridge the wealth gap by enabling lower-income individuals to participate in the real estate market, but it is not a cure-
all for wealth inequality.”
Shifting Paradigms
The concept of joint ownership is not entirely new—it has long existed in marriage and family settings. Its formal expansion is new: Collective Buying allows multiple individuals to co-own property with clearly defined equity stakes. It challenges conventional ideas about home ownership, offering cooperation as a competitive advantage. Collective Buying signals the possibility for young professionals to partner on a rental property, or for friends to purchase a holiday home together.
More than that it says: You do not have to wait until you have enough on your own. You can start building together today. However, this model isn't without complexity. From a behavioural economics standpoint, shared ownership requires high coordination and trust. Mboti cautioned: "Social and cognitive biases, such as the tragedy of the commons, can impact the success of collective ventures. Each person may try to maximise their benefit without considering the group, ultimately depleting a shared resource that depends on mutual care, that is why legal and financial clarity is critical."
Co-investors must put robust agreements in place from the outset, protecting everyone's interests and ensuring long-term stability. With the proper structure, Collective Buying can succeed financially and socially, strengthening relationships and reinforcing community ties.
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As FNB Namibia economist Helena Mboti said: "In developing economies, housing is often about inheritance rather than investment, leading to stagnant markets." This is particularly true in Namibia, where home ownership remains out of reach for many due to structural inequalities, limited access to capital, and soaring property prices. Yet, where barriers exist, so does the opportunity for innovation."
Collective Buying is FNB's answer to one of the most pressing challenges facing aspiring homeowners today: affordability. By enabling up to 12 individuals—whether family, friends, or members of a formal investment group—to pool resources and co- invest in property, FNB is rewriting the housing market's access rules. This model opens doors for those previously priced out, allowing them to leverage collective strength to pursue a shared goal.
As Mboti explains, “For households otherwise excluded from the housing market, collective ownership provides a stepping stone to property access. It can help bridge the wealth gap by enabling lower-income individuals to participate in the real estate market, but it is not a cure-
all for wealth inequality.”
Shifting Paradigms
The concept of joint ownership is not entirely new—it has long existed in marriage and family settings. Its formal expansion is new: Collective Buying allows multiple individuals to co-own property with clearly defined equity stakes. It challenges conventional ideas about home ownership, offering cooperation as a competitive advantage. Collective Buying signals the possibility for young professionals to partner on a rental property, or for friends to purchase a holiday home together.
More than that it says: You do not have to wait until you have enough on your own. You can start building together today. However, this model isn't without complexity. From a behavioural economics standpoint, shared ownership requires high coordination and trust. Mboti cautioned: "Social and cognitive biases, such as the tragedy of the commons, can impact the success of collective ventures. Each person may try to maximise their benefit without considering the group, ultimately depleting a shared resource that depends on mutual care, that is why legal and financial clarity is critical."
Co-investors must put robust agreements in place from the outset, protecting everyone's interests and ensuring long-term stability. With the proper structure, Collective Buying can succeed financially and socially, strengthening relationships and reinforcing community ties.
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