Early this year, Cytonn Investments launched a Home Ownership Savings Platform (HOSP)
The HOSP’s main objective is to aid in housing finance for homebuyers and promote a culture of savings for aspiring homeowners.
According to the company, CAHIP which has partnered with Cytonn Money Market Fund and managed by Cytonn Asset Managers Limited will provides high levels of returns while protecting the investor’s capital.
CAHIP has tax an income tax exemption of up to Sh8000 (translating to Sh96000 per year) while providing those saving towards home purchase with an investment proposition with the target yield of 11 percent per annum.
The initial investment is pegged at an affordable Sh1000 with a minimum monthly contribution of the same.
In addition, CAHIP provides a platform that will enable individuals develop a credit profile, as the savings made by a subscriber act as proof to a financial institution of their creditworthiness.
Withdrawal of the funds is strictly to buy a house, construct a house or buy land for construction upon proof.
The HOSP is made possible by the amendments to the Finance Bill 2019 which expanded the scope of approved institutions which can hold savings towards home ownership savings plan to include fund managers and investments banks registered under the Capital Markets Act, effective January 1, 2020.
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