Make your housing loan go as far as your dreaMs

a building advicehandbook

A building AdvicehAndbook

Make your housing loan go as far as your dreams

congratulations!

You have now received a housing loan from your local finance company.

Improving or building a house is one of the biggest investments we all make. But if we are not careful, we can make

expensive mistakes by not planning properly, or choosing unsuitable materials, or the wrong builder.

The Rural Housing Loan Fund (RHLF) wants you to make the most of your loan, and to avoid costly mistakes. We

have written this handbook to give you ideas and advice on how to go about improving or building your home.

RhlF visionRHLF is a world-class social venture capital fund that creates new financial arrangements

and opportunities for rural families to improve their housing, economic and living environment.

RhlF MissionTo empower people in rural areas to maximise their housing choices and improve their living conditions

with access to credit from sustainable retail lenders.

ISBN 0-620-24602-2

disclaimer

The Rural Housing Loan Fund (RHLF) has made every effort to ensure that the advice given in this handbook is complete, pro-fessionally sound and accurate. However, since the handbook will be used in circumstances beyond RHLF’s control, it accepts

no responsibility and cannot be held liable for any losses or damages that may arise.

© The Rural Housing Loan Fund, 1999, 2004, 2016.

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission from the Rural Housing Loan Fund, except under the terms set out below.

This publication is copyright, but maybe reproduced by any method without fee or prior permission for legitimate clientsof retail lending organisations and rural development organisations, provided that acknowledgement is made. It may

not be reproduced for resale.

Section 1: importance of budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Steps in drawing up a personal or household budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Section 2: using my loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

What can I do with my new loan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

How do I get the most out of my loan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Planning my new home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

What do I need to buy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

What will it cost me? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Ordering my building materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Storing my building materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Section 3: getting the right builder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

What to look for in a builder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Issues to be discussed with the builder and things to agree on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Payments to the builder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

The building contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Section 4: Avoiding common building problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Areas where problems could arise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Brickwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Mixing the cement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Doors and windows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Roofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Plumbing and electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Alternatives to asbestos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

contents

notes

When one considers taking a loan for any purpose, it is important to first consider the ability to repay that loan on a regular basis without comprising

other family or household financial obligations.

1

importance of budgeting

Section

1

importance of budgeting

If your monthly income is more than your total monthly expense, it means you are living within your means. But then again, you have to save for the rainy days such as emergencies. This situation is a desirable one for any household. If such a family needs to borrow money for any important household need such as extending a house, depending on certain conditions, it may be easier to obtain a loan.

If, however, a household or person’s total monthly expenses are more than the monthly income (take-home pay), then a household or person in this situation is living beyond its or his means. This is an undesirable situation. A household in this case cannot save for emergencies nor can they afford to make repayments to a new loan.

Most households or persons, especially at low-income levels battle to understand the need to do a monthly bud-get and stick to it. In most instances, people have not been exposed to a process of drafting a budget. In this sec-tion, we intend to help you to compile a basic family or personal budget. The objective is to ensure that you know exactly where your income goes and how to prioritise your expenditure.

The Financial Services Board has a financial guide booklet entitled “use Your Money Wisely”. This booklet gives guidance in compiling a personal or family budget. The following steps are adapted from this publication.

The first step in compiling a budget is to make a list of all fixed costs/expenses. Fixed costs are those that a person or household has to pay on a regular basis such as monthly, and they are usually the same every month.

budget: a financial plan showing income and expenses either for an individual or a household on a monthly basis or /and on yearly basis1

Steps in drawing up a budget

Step 1: Listing of fixed costs

• Monthly income or your take home pay; and• Monthly expenses.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

When one considers taking a loan for any purpose, it is important to first consider the ability to repay that loan on

a regular basis without comprising other family or household financial obligations. A household must also at all

times make provision for emergency expenses (such as doctor’s bills) and this emphasises that a portion of family

income must be saved.

There are two important parts of a budget , and these are:1

Examples of fixed costs are rent, insurance, school fees, and so on. Then add all fixed costs to get the total.

We have also provided you with empty space so that you can start practising drawing up your own budget.

Now that you have fixed costs and variable costs, add the two to get total costs and write down the answer

(Our example is R 2450 + R 3420= R5 870).

Step 3: Add total costs

Write down a list of your total income for the month (R 6700 in our example). This is the amount you have

to spend each month and it is an after-tax income.

Step 4: Write down total income

illustration: Table 2

changing costs:

Electricity/water

Accounts

Groceries

Telephone

Petrol/repairs

Entertainment

Medicine

Other

Total changing costs

Your changing costs:

R400

R450

R1000

R240

R300

R400

R180

R450

R3 420

Fixed cots: costs that are paid on regular basis and normally do not change2

variable/changing costs: costs that have to be paid monthly and the amount may change from month to month3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Write down all variable or changing costs. Although also occurring monthly, variable costs change from month to

month. Examples of variable costs are electricity, groceries, account payments and so on. Remember that there

are unexpected expenses and you need to provide for these by including the amount called “other”.

Add the amounts and write down total.

Step 2: listing variable/changing costs:3

illustration: Table 1

Fixed costs :

Rent

Insurance

School fees

Car repayment

Total fixed costs

R800

R300

R450

R900

R2 450

Your fixed costs:2

3

Before any long-term debts are incurred, the household should consider any future liabilities that may

otherwise be ignored such as:

While the Zwane family has a monthly surplus of R830, which it may be tempted to use to repay the loan, the

family will have difficulties repaying such a loan if one of the “incidences” mentioned above occurs too soon.

These are some of the considerations that each household or a borrower must think about when applying

for a loan to avoid financial trouble.

expected additional costs/future “contingency” liabilities

illustration: Table 1

The Zwane family budget Your own budget

Fixed costs

Rent

Insurance

School fees

Car repayment

Total fixed costs

changing costs:

Electricity/water

Accounts

Groceries

Telephone

Petrol/repairs

Entertainment

Medicine

Other

Total changing costs

Total costs

Total income

less total costs

Money over

R800

R300

R450

R900

R2 450

R400

R450

R1000

R240

R300

R400

R180

R450

R3 420

R5 870

R6 700

R5 870

R830

• The family may be expecting another baby soon.• A child may be going to tertiary the following year.

Finally, you must subtract the smaller amount from the bigger amount. If costs are bigger, you have spent more

money than you have. This is an undesirable situation for any family under normal circumstances. If your income

is bigger, you have money over — that is, you spend less than you have and you still have more left which

could be saved (R830 in our example). Normally, the good idea would be to budget the amount to be saved

on a regular basis.

Step 5: determining whether you spend more or less than you earn

4

Money over: the amount of money that is left for an individual or household from income after paying for all expenses (total cost)4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

5

using my loan

Section

2To get the most out of your loan, plan carefully before you begin building your home.

using my loan

Although your loan may be small, you need to think about how you can get the most benefit for your money

and from your savings, your own labour and your next housing loan. To do this, you must do the following:

how do i get the most out of my loan?

Make a list of all your needs, then decide which are the most important. Although this may seem difficult,

remember that after you have repaid this loan, you could get another.

Prioritise your needs

Congratulations! You have a new loan. There are many ways in which you can use your loan.

You could:

What can i do with my new loan?

• Build a fence around your home• Connect to utilities- water harvesting or electricity• Improve your house• extend your house• Build a new house• Extend your home for your own business• Build a toilet into your home or onto your property• Put in a tank for holding rain water, or purchase solar panels for electricity

1

2

To get the most out of your housing loan, plan carefully before you begin building your home.

This section covers:

• What can I do with my new loan?• How do I get the most out of my loan?• Planning my new home• What do I need to buy?• What will it all cost me?• Ordering building materials• Storing building materials

extend: build a new room onto your house1

Solar panel: sun-powered batteries that produce electricity for your home2

Subsidy: one-off grants, payable by government in your name to get land, service or housing3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Do you have any savings you could use? Do you have a family member who could help with the building?

Could you paint the house yourself? Could you get a government subsidy for housing, land or services?

Could you make your own bricks? Could you reuse some of the building materials that you already have?

decide how you could add to the building process

3

6

Be sure to get an experienced, reliable builder who will build you a good quality home or extension (for tips on

how to do this, please see the section in this booklet titled “Getting the right builder”, page16).

Watch your builder everyday to make sure that he does not make mistakes when building your home.

choose your builder carefully

be careful

Planning my new home

7

1999

2007

2004

You are the best person to plan your new home to suit your needs, your land and the amount of money

and savings that you have.

Think about the following when deciding where you should put your house on your piece of land:

first: Think about the shape and size of your land, and where you would like to put the house, or

extend the house

second: Think about the inside of the house. If you are going to extend, think about moving as few

doors, windows or plumbing as possible. Moving or buying these will cost you money.

third: Draw a sketch plan of how you want your house to look like.

(a) how do i position my house on my land?

space to extend: Position your home

so that when your family grows, or

your needs change, you can add on

to your house if necessary.

heat and light: In South Africa,

the sun comes from the north, so

the side of your house that faces

north will be warmer and brighter

than the side that faces south. If

you live in a very hot area, you

may want to shade this side of

the house, using trees, plants or

an overhanging roof. In a cool

area, you may want to put

windows on this side of the house

to let light into your house.

8

security: You may wish to use your loan to put a fence or wall around your land, or to put burglar bars on

the windows of your house or a security gate on your door.

Foundation: this is the solid concrete base upon which a house is built. There are two main types of foundation: strip footing, which sits

directly beneath the walls, and slab-on-the-ground, which is a concrete slab that supports the whole house

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

wind: A wind that blows through a house cools

it, but also brings in a lot of dust. If you want to

protect your home from wind, make the shorter

side of the house face the wind and plant trees

to shield the house from the wind.

slope: If your site slopes, remember that water

will wash down onto your house. It may sink un-

der the house and eventually cause cracking.

If your house is built on a slope, you should put

a layer of cement around the entire house to stop

water from sinking under the house.

services: It will be easier to get services such

as water and electricity if your house is near

where these services come from. Most services

come from the road in front of your house.

trees: Try not to cut down the trees on your site.

Trees and plants should be used around your

house to shade you from the sun and wind as

well as give you more privacy. But don’t build

your house too close to trees as roots may cause

the foundations and walls to crack.4

Sketch: a rough drawing5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Next, list the rooms you would like in your house, such as bedrooms, lounge, kitchen, bathroom, dining

room. Decide how many rooms you can afford to build at this stage, but plan for all the rooms.

When designing your new home, think about the size you need. Will your house be big enough for your

family? Do you need to build an extra room to rent out so that you can earn extra income? Will your house

be big enough should you wish to run a business from home?

(b) how do i plan my house?

If you are going to build your house in stages, first

draw out the sketch of the entire house, then select

which parts you would like to build first.

5

10

Be very careful to plan the way you would like your kitchen and bathroom to be laid out, as these are the

most expensive rooms in the house to build. In your bathroom, the bath or shower, the basin and the toilet

should be against the wall where the pipes will be bringing in water. Even if you do not have piped water

in your house now, design your bathroom for when you will have water. Don’t put a window where you

want to have a shower.

Make sure you have a list of all the building materials you will need to build your house. Even if you are going to

build in stages, you should get a list of all the materials you will need for the whole house to show you how much

money you will need in future. Ask your builder or a building materials supplier about the right kind of materials.

(c) Sketching a plan of my house

What do i need to buy?

light: Although the north side of your house will be the sunnier side, think about where morning and afternoon

sun will come into the house. You must have a window in each room of your house to let in air and light.

roof: You should think about putting a ceiling into your house to stop the house getting too hot or too cold.

You can also ask your building materials supplier for a type of tin foil to put in your roof to insulate your

house. If you build thick outside walls it will also help to protect your house.

plan: Once you have decided on all the things you want in your home, you need to draw a plan of your new

house. You should ask your builder or someone experienced to help you with this.

6

insulate: prevention of heat escaping from your home, usually by putting a ceiling or lining your roof6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

Roof

Walls

Foundations and floor

lintel: a pre-cast concrete beam used above door and window openings to prevent cracking7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the roof:

For the foundations and floor

• Roof sheeting such as galvanised sheets or Nu-tec non-asbestos sheeting

• Timber

• Roof tiles

• Wire

• Nails

• Sand and stone (concrete stone, concrete sand, brickwork sand and plaster sand)

• Cement

• Plastic to put under the floor slab (this is also called the “damp-proof membrane”)

For the walls:

• Bricks/building blocks

• Plastic to keep moisture out of the walls (also called the “damp proof course”)

• Brick force (wire which is laid between bricks to make your walls strong)

• Window frames

• Door frames

• Locks

• Lintels

• Window sills

• Air bricks

• Doors

• Glass

• Paint

7

12

If you do not use the sample plans, show a building supplier your plan and ask him to give you a list of all the

building material you will need.

If you use the sample plans available from your retail lender, you will see the type of materials that are used in

building a house.

Your costs for building a home will include:

What will it all cost me?

• Building materials plus delivery costs

• Labour — the costs of paying the builder

• If you get a new water or electricity connection,

you will have to pay for these.

• Other things you should consider that may not be

included in your list of building materials: painting

your house, the costs of getting plans drawn up, light

fittings, ceilings, and plumbing. You may also want to

buy furniture and curtains for your house, but your

housing loan cannot be used for this expense.

That your monthly costs will include your loan repayment, water, electricity and telephone bills

Remember

13

Savings loan own labour

To ask your building supplier to help you calculate the amount of materials you need

Remember

When ordering building materials, remember to get quotes from different suppliers for the materials you need.

Add the delivery costs to this to work out your total costs of building materials.

ordering my building materials

When you are getting quotes for the materials

you need, ask building suppliers how much

they charge for delivery. To avoid theft, building

materials should only be delivered just before

building starts. If you do need to store any ma-

terials always keep them in a safe place where

they will not be stolen or ruined by the sun,

rain or wind. You may also consider getting a

fence and a gate to help secure the materials.

Storing my building materials

Store bricks and sand on the ground near the

building. Bricks should be stacked neatly to

avoid breakages. This will also ensure that they

do not fall over and harm people, especially

children. Sand can be surrounded by timber

boards so as not to spread over the ground

which results in wastage.

bricks/sand

14

Cement should be raised off the ground and

covered in plastic. It could be raised by using

timber pallets or by forming brick supports.

This is to prevent rain and moisture from

hardening the cement. Follow the directions

on the bag.

cement

Off the ground

Delivering materials

Timber truss: triangular wooden roof frame8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

Timber/sheeting

If stored on site, timber and timber trusses

should be stored upright and not flat on the

ground to avoid timber twisting out of shape.

They should be raised off the ground and

covered in plastic.

8

These should be raised off the ground and cov-

ered in plastic. It is also a good idea, for security

reasons, to tie frames together. Buy the best

frames you can afford to avoid problems later.

Windows/door frames

It is best to keep building materials off the ground

and to cover them in plastic. To prevent the

plastic from being blown away, bricks should

be placed on top of it. If a part of the house has

been built and roofed, you could store materials

such as cement and frames in it so that they can

be better protected against the weather and will

be less likely to be stolen.

Summary

getting the right builder

Section

3You must get the right builder to build your home. You need a builderwho has experience of building similar types of houses, someone who

is honest and does not charge too much.

16

You must get the right builder to build your home. You need a builder who has experience of building similar

types of houses, someone who is honest and does not charge too much. This section covers:

• What will the work include: show the builder your plans and discuss what you want the builder to do,

going down to the smallest details such as plastering, painting, putting glass in the windows and so on.

getting the right builder

• What to look out for in a builder

• Issues to be discussed with the builder and things to agree on

• Payments to the builder

• The building contract

What to look for in a builder

issues to be discussed with the builder and things to agree on

• When you go and see the houses which the builder has built before take along the list of common

construction faults mentioned in the section called “Avoiding common building problems”

(page 20), and see if you can see any of them in the houses.

• If someone has recommended a builder, ask if he or she had any problems dealing with the builder.

Ask if the builder fixed things that went wrong with the house after they moved in.

• You should get quotes from a number of different builders. Compare them and see which is the

cheapest and which builder do the best quality work.

17

Could you give me the names and addresses of

some of your past clients so that I can go and see them

and their houses?

Have you built this type of house before?

Have you got the right tools to build my house?

How long have you been building for?

• Payment: ask the builder how much will the whole job cost and when he will he want to be paid

• Timeframe: how long will the whole job take and when will it be finished?

• Problems and faults: if you discover faults after moving into your house,

will the builder come and fix them?

• Contacting the builder: when is the builder available to start and how can you contact him?

• Building skills: can the builder do all the jobs you want him to, such as build a wall, plumb a sink

or put in electricity connections?

Be suspicious of contractors who demand large deposits — many people have lost money

because building contractors have stolen their deposit

Remember

Remember

You will probably not be able to cover the whole costs with just one loan. What can the builder do with

the loan plus your savings?

The plans must be shown to the builder. Agree on exactly how many rooms you want and how big

each should be. Written on the plan should be a list of what you would like in each room, such as

geysers , ceilings, electricity points, taps, doors, windows, flooring and so on1

Before you pay any money over to your builder,

get the following details from him:

Payments to the builder

• His ID number

• His full name (check this with the name

in his ID book)

• His phone number and address

Never pay a large deposit upfront to a builder.

There are many people who have been tricked out of

their money by dishonest builders. Many paid a deposit

and never saw the builder again. Get a receipt from

the builder for any money you pay. The receipt should

show your name, the date, the correct amount of

money and the name of the person you are paying

the money to.

2

geyser: an electric water-heating tank

deposit: the first part of a payment to show that an agreement will be kept, for example, with your builder or material supplier

1

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

The building contract is an agreement you make with the builder before he starts building. You should have

discussed and agreed on the things listed underneath. Always try to write them down so that you are both

clear about what you are agreeing on.

The building contract

The building contract

(This is not a legal contract; it is a guideline to help you when negotiating with your builder.)

building contract between:

builder:____________________________________ and owner:_______________________________

Work will begin on:_________________________ and finish on:____________________________

if work is not completed by the agreed date the following penalty will apply:

Work to be done:

______________________________________________________________________________________

______________________________________________________________________________________

The builder will not be responsible for the following work:

______________________________________________________________________________________

______________________________________________________________________________________

costs

Total cost R_________________

Payment terms 1st payment R___________________Due on date__________________________

2nd payment R___________________Due on date__________________________

3rd payment R___________________Due on date__________________________

4th payment R___________________Due on date__________________________

(upon satisfactory completion of work)

Costs include material Costs exclude material

Signed on___________________________ at ______________________________________________

builder ___________________________ owner ___________________________

19

Avoiding common building problems

Section

4Here are some areas where problems could arise.

20

Avoiding common building problems

This section covers:

• Areas where problems could arise

• Brickwork

• Mixing the cement

• Doors and windows

• Roofing

• Plumbing and electricity

• Alternatives to asbestos

Laying the floor slab

• This is the layer of concrete that will form the floor of your house. It is important that the floor slab

is above the ground; otherwise when it rains water will flow into your house.

• Your floor slab should be at least 7,5cm thick and can either be built into the wall or can lie directly

on the ground. The ground under the slab must be very firm and level.

• You should put a layer of plastic sheeting called “waterproof sheeting” or “damp proof membrane”

on the ground before you pour the concrete to stop water from soaking into your house.

• If you live on a slope you should build a 1m wide and 20cm thick layer of concrete around your house

to keep water from running onto the walls of your house. This should slope away from your house.

digging foundations

• The foundations of your house should be big enough and strong enough to support your house.

There are two types of foundations you could have to support your house: strip foundations or raft

foundations.

Areas where problems could arise

21

Remove grass and top soil layer

green plastic damp proof membrane

90 mm Slab

Dig to firm ground (at least 60 cm below ground level)

Foundation to be a minimum size of 20 cm thick 60 cm wide

You must be careful in looking out for these problems. Once your builder makes a mistake

and the cement dries up, it may be too late to correct the problem

Remember

• You should have a layer of plastic called a “damp proof course” built into your walls at the level of

your floor. This will stop water from seeping into your walls.

• “Brick force” is a layer of wire that is built into the walls to make them strong and stop them from

cracking. Your builder should build brick force into the walls horizontally every four rows.

You should also put two layers of brick force above windows.

• It is important that bricks are laid in even, level rows. Brickwork should not look uneven and skew.

• In each room of your house you should have airbricks leading to the outside.

This ensures that there will be enough air in your house even if the doors are closed.

You should have airbricks over every door and window in your house.

• The way you scrape the cement between bricks is important to make sure that water does

not seep into your house. There are many different ways of scraping the cement.

The right and wrong ways of doing this are shown below.

brickwork

If cement is mixed in wrong proportions with sand, it may be too weak and will not hold the bricks together

properly. Do not try to save money by using a weak cement mix. Cement should be mixed differently for

different uses, such as foundations, mortar or plaster. Follow directions on the bag.

Mixing the cement

22

good Fair bad

doors and windows

• You should have lintels (long pieces of concrete with wire in) above every door and window in your

house to ensure that the bricks above do not collapse. This is especially important if you are using

old window or door frames as they are not as strong as new frames.

• Windows must open outwards.

• You should not have large gaps left around windows and under doors as this will let water,

cold wind and dust in.

• Door and window frames should be painted when you are finished building. If you don’t paint them,

metal frames might rust.

• Buy the strongest frames you can afford.

Foundations

Floor slab

Mortar

Plaster

River sand

River sand

River sand

Plastering sand

1 bag

1 bag

1 bag

1 bag

4

4

4

4

Sanduse Stonecement

23

Stone

5

Stone

5

24

12mm to 15mm thick wall

Two rows of brick forceabove lintels to increase the strength of wall

Concrete lintels over window

Window in centre of wall

Angle bricks on edge to allow rain water to run off

Black plastic dampproof layer belowwindow sill

Brick overhang toallow rain to drip off

Roofing

Plumbing and electricity

Alternatives to asbestos

• Roof beams should not be too far apart and the timber should not be too thin or else they will not

be able to support the weight of the roof. Ask your building supplier for the correct type of timber

for your roof.

• Your roof should overhang the walls of your house by 60cm.

• The roofing material must be properly secured to your house. If it is not secured, there is a danger

that it will be blown away.

• Your roof must slope enough to keep it from leaking.

• When you put an electricity board into your house, you should be sure that the board will suit your

needs both now and in the future. Some boards do not allow you to use many appliances.

• You can collect the rainwater that falls on the roof of your house into a barrel by directing a pipe from a

gutter built onto your roof into a tank such as a Jojo tank. This water can be used for washing and

watering your garden.

• Asbestos is a mineral fibre used in many building materials, such as roof sheeting, ceilings, pipes

and tanks. Even though these may look solid, when products made of asbestos wear or break, they

release tiny asbestos fibres into the air. If you breathe in this air, you may get lung diseases or

cancer. Many people die from these diseases.

• Everyone who uses asbestos products in their home or who builds with materials containing asbestos

is at a health risk.

• Asbestos has been outlawed in South Africa. However, there are new products, that even though they

look like asbestos, are alternatives to asbestos. Always confirm with the supplier that these are not

asbestos products. (see page 27 for more information).

25

26

Hoop iron tiles to hold roof down in strong winds (one on each truss)

39mm x 38mm purlins titles

Yellow or whiteplastic and tilemembrane

39mm x 38mmceiling battens

Black plastic damp prooflayer to stop rising damp

The following are alternatives to asbestos:

Please note: To protect families who benefit from its loans, RHLF does not allow any of its loan funds to be used to buy asbestos products.

AlternativeAsbestos product

Bigsix and Profile B sheeting Nutec sheeting by Everite - costs

the same, does not rust, is lighter and more flexible

Corrugated iron sheeting – easy to build with and is strong

Facias and bargeboards Nutec facias – costs the same, does

not rust

Galvanised steel – very strong

Bricks on edge – easy and cheap

Concrete – easy to clean

Timber – looks nice and is not expensive

Nutec ceiling boards – costs the same, versatile

Gypsum – easy to put in and will insulate your home

Galvanised steel – easy to put in and doesn’t break easily

Marley plastic – easy to put in and easy to maintain

UPVC (plastic) pipes – easy to put in but not very strong

Steel and concrete pipes – very strong, do not break easily

Plastic water tanks – easy to handle

Galvanised steel tanks – easy to handle and strong

Brick and mortar septic tanks

Concrete wash troughs – very strong

Plastic wash troughs – easy to handle, but not very strong

Galvanised steel troughs – very strong and easy to install

Roofing materials

Window sills

ceilings – “cladit” ceiling boards

gutters and downpipes

Asbestos water pipes and

sewer pipes

Septic tanks and water

tanks

Asbestos wash troughs

27

Appendix: Where can i get help?

organisations you should know

There are many people and organisations that can help you with building of your home.

Advice on building

(a) Building materials suppliers

Reputable dealers in building supplies should be able to answer your questions on the best materials to

use for your job. They should tell you about different kinds of materials and costs. They can also help you

to calculate quantities of materials you need, provided you have a building/ house plan.

You can contact:

Problems with your builder

(b) Local authorities

Your local municipality may have someone who could advise you on your housing plans.

There may be local standards and by-laws with which you have to comply. If you live in a formal township,

you should have your plans approved by the local municipality before you start building.

28

(a) legal Resources centre (011) 403-7694

This national organisation provides free legal services, and can advise on various matters, amongst others can

assist you on any housing and building problems

Provincial Legal Aid offices

Gauteng (Head Office) Tel: (011) 877 2000Eastern Cape Tel: (041) 363 8863Free State Tel: (051) 412 8040 or (051) 412 8041Kwa Zulu Natal Tel: (031) 717 8450Limpopo Tel: (015) 296 0117 or (015) 296 0148Mpumalanga Tel: (015) 296 0117 or (015) 296 0148North West Tel: (051) 412 8040 or (051) 412 8041/8048Northern Cape Tel: (021) 861 3000Western Cape Tel: (021) 861 3000

Gauteng (Head Office) Tel: (011) 877 2000Eastern Cape Tel: (041) 363 8863Free State Tel: (051) 412 8040 or (051) 412 8041Kwa Zulu Natal Tel: (031) 717 8450Limpopo Tel: (015) 296 0117 or (015) 296 0148Mpumalanga Tel: (015) 296 0117 or (015) 296 0148North West Tel: (051) 412 8040 or (051) 412 8041/8048Northern Cape Tel: (021) 861 3000Western Cape Tel: (021) 861 3000

(b) national home builders Registration council (nhbRc) (011) 348-5700

This organisation keeps a list of qualified and reliable builders all over South Africa. Look for the registration

council in your area. These builders are registered and have a warranty fund that could cover the costs of any

serious faults in workmanship.

Gauteng DHS Tel: 011 355 4000Limpopo DHS Tel: 015 284 5000Free State DHS Tel: 051 407 4727Mpumalanga DHS Tel: 013 766 6088North West DHS Tel: 018 388 2882Eastern Cape DHS Tel: 086 00 00 039Northern Cape DHS Tel: 053 830 9581Western Cape DHS Tel: 021 483 2868Kwa Zulu Natal DHS Tel: 033 392 6400

(c) national department of human Settlements Tel: 0800 1 (houSe) 46873

getting a subsidy from government

(d) estate Agency Affairs board (eAAb) Tel: 087 285 3222This organisation with the mandate to regulate and control certain activities of estate agents in the public interest.

(e) Community Scheme Office Ombudsman (CSOS) Tel: (010) 593 0533This organisation with the mandate to regulate and control certain activities of estate agents in the public interest.

(f) national urban Reconstruction housing Association (nuRchA) Tel: 011 214 8700NURCHA provides finance to contractors and support the construction of Subsidy and Affordable Housing, Infrastructure and Community Facilities. They also provide Account Administration, Project and ProgrammeManagement Services to local and provincial authorities

(g) national housing Finance corporation (nhFc) Tel: (011) 644 9800The NHFC, in the affordable housing finance market sector, adopts a role of Financier, Facilitator and Innovator, to ensure viable housing finance solutions; growth of sustainable human settlements; and mobilization of relevant partnerships, through enhanced insights and knowledge gained.

You may be eligible for a subsidy from government for housing, service connections or land. For more informa-tion, please contact your municipality or provincial housing department.

Provincial department of human Settlements

P.O Box 645, Bruma, 2026

Tel: (011) 621-2500 Fax: (011) 621-2520 Website: www.rhlf.co.za

Make your housing loan go as far as your dreams