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Business News for Monday, October 26, 2020
Source: www.ghanaweb.com
2020-10-26
Farms of the National Housing Mortgage Fund on the Subject
Finance Minister Ken Ofori-Atta has said that some 200,000 homes to be built annually are projected to cover the national housing deficit.
This comes after figures from the Ministry of Works and Housing revealed that Ghana’s national housing deficit reached some 2 million units in 2019.
According to Ken Ofori-Atta, the intervention is necessary to enable low- and middle-income Ghanaians with decent and affordable housing.
Speaking at the Estates National Mortgage Housing Fund launch on Topic on Monday, October 26, 2020, Ken Ofori-Atta said, “To address this, the government must continue to address the housing issues in the country in a manner that matches with the pace of urbanization and demographic change. This will mean about 200,000 homes when we are at full throttle with affordable housing construction.
“We must recognize that successive governments have implemented various housing schemes to address the deficit and boost economic growth, although these schemes have been useful, they turned out not to be sustained in the desired way due to the lack of follow-up from one government to another. , high cost of inputs that is sometimes around 50 percent of the cost of construction and infrastructure, which has become 30 percent of our homes, land tenure system, lack of standardization and financing problems “.
Meanwhile, President Nana Addo Dankwa Akufo-Addo has commissioned some 240 homes as part of the National Mortgage Financing Initiative located in the Tema 22 Community enclave.
The initiative comes as part of the government’s efforts to provide affordable and decent housing to Ghanaians in all districts within a time frame.
Mortgage schemes
A National Housing and Mortgage Fund (NHMF) has been established to test two schemes: the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REIT) (Rent to Own) schemes. ). Under the National Mortgage Scheme NMS), mortgages are underwritten at rates of 10-12% by participating banks, namely GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited.
The intervention aims to reduce mortgage rates by more than 60 percent, compared to the market average rate of 28 percent. In addition, according to the specifications of the building, the initial price of the houses is ¢ 140,000 GH and ¢ 90,000 GH for the standard of two and one bedroom, respectively.
The affordable housing REITs are promoting the rent-to-own scheme with only monthly rent payments; and after a period, the occupant has the option of owning it. The rent-to-own scheme will eliminate the burdensome two-year rental advance system. It is designed to give low-income workers the opportunity to rent and eventually own houses. The focus will be on the apartments and the rehabilitation of the city center.
The goal is for the affordable housing REITs to provide the purchase for the rest of TDC’s affordable housing units in the enclave, to provide more dignified housing through the Ghanaian Rent-to-Own Plan once TDC complete. Interested public servants have been asked to request their consideration.
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