Property Purchase

28. Aug. 2024
CLH needs a home
The first major strategic decision for CLH was the purchase of a property in Kabanana. There are a number of factors that influenced this decision:
Why buy and not rent
Initially it would be much cheaper and simpler to rent a property rather than to try and buy a house. However, our values are to focus on quality and think strategically in the long-term. As such, buying makes much more sense. First of all it will eliminate the need to pay rent on a monthly basis, and over time is cheaper. Secondly, it provides the freedom to adapt the space to our own needs - no need to get permission to make structural changes or invest in improvements. Part of our safeguarding policy is to create a safe environment. If we are in a rented space that presents a fire hazard or the plumbing needs improvement, then we are always dependent on a landlord's cooperation. In addition, any money we invest to improve the space would be lost once we move.
What kind of space?
When looking for a space we had two important factors in mind. First of all it should be a place in the midst of the community. There should be space for us to conduct our projects and build up our programs. Secondly it needs to be able to accommodate both Subilo and Terry. Since we are in no position to pay salaries as we get started, being able to offer free accommodation is a way of compensating them for all the hard work.
Which space?
Terry was tasked with looking around for a space, ideally in Kabanana, as he passed through the compound every day on his way to and from work. It didn't take him long to report that he had found something. He was immediately smitten by the place, and in the end we all agree that this first option was also the best option. The property he found is located on a corner, slightly elevated on a hill - flooding during rainy season should not be an issue. It already had a wall fence, gate and two structures with enough space for both Terry and Subilo to claim their own private space while leaving plenty of room for project activities. In particular two small rooms seem ideal for a small community library. Next to it there is a small shop that opens to the outside - perfect for conducting income generating activities as part of a business/entrepreneurship course.

Financing
The big question when buying is obviously how to finance such a major acquisition. In this case Sibylle decided to invest her savings into CLH and offered a 0% interest loan to CLH, to be paid back in instalments once CLH generates some income or once the property is sold. This agreement removes the financial pressure from CLH to immediately generate monthly income to pay rent/loan repayments, and also provides Sibylle with the assurance that her money is serving the intended purpose of supporting CLH.
With all those points agreed on, CLH could officially sign the contract of sale on August 28th and start moving in shortly after.

