11/12/2013
Third Session: an emphasis on "economic" housing problem to not remain for many years
At the 3rd meeting, titled (mortgage and housing institutions), headed by Chairman of the AFG Dr. Abdulaziz bin Mohammed al-Dakhil, in a paper entitled (partnership real estate development fund, the private sector), the Director of real estate development fund ahshuen said that the real estate development fund founded in 1394 by Royal Decree No. 23/م (11/06/1394 - 01/07/1974, commenced in 1975 with the aim of contributing to the field of property development in the Kingdom, started the Fund with capital (250 million) and increase its capital several times to become now 191 thousand million, began offering two types of loans (private housing loans. investment loans).It covers IMF loans now over (3,967) city and village and migration.-for the total loans approved to date (890503) loan for a total amount of $ (302820892280). Through (33 branches and offices) across the Kingdom (13), and (20).
Alabdani said investment loans that the value of the investment loan of 50 of the planned project cost and a maximum capacity of 15 million, to be repaid over five years ,in 1398 declined the loan ceiling to 10 million, and to allow for the greatest number of people to benefit from these loans, and in 1400 the repayment period has been extended to ten years. The Fund was keen to apply high standards for the implementation of the residential and office complexes financed, so it required a range of services and the requirements in the investment financed by loans. He said that the program was shut down in 1995 due to a lack of liquidity available to the Fund for the purpose of giving priority to individual loans. He recalled that the main challenges facing the Fund is to increase demand for housing and the need for them, in Exchange for lower supply and lower procurement capability and high land prices and the need for new mechanisms to resolve the problem.
The number of UNFPA programs, most notably (guarantor) to the citizen has to approve the loan and wish to purchase a dwelling ready construction, does not have sufficient liquidity to buy it, the Fund will guarantee to the seller of the property to the value of a loan fund to repay the loan amount to the seller after the completion of the transfer of the borrower and foreclosure real estate fund. Explaining that the conditions of the property, the borrower and seller is that no more than the property of twenty (20) years and be completed construction within the urban scale, and to not have the building to be purchased has been borrowing from the real estate development fund, to be free of structural defects. He noted that demand for this program is limited to those who were approved to borrow money from the Fund and in case if the seller borrowers from the Fund must be regular in preparation and no late payments. If there is more than one owner of the property sold must issue one sales agency and IBAN.
He said that the loan amount is determined according to the terms and specifications adopted by the Fund and a maximum of $ 500,000, to be paid a monthly deduction from salary or bank account after (24) months from the date of signature of the contract Fund, unloading the property on behalf of the buyer (borrower) and pledged to the Fund. UNIFEM programs as aggressive additional loan program is a joint program between the real estate development fund, funded by (the Bank or mortgage company) based on the combined loan amount the Fund source of additional funding from the taxpayer in which the citizen can buy a home with a higher value of loan fund or buy land to build a House on it with a loan from the Fund. It is aimed at all citizens applying for a loan fund and issued them to approve the loan includes funding to finance dwelling ready, financing for the purchase of land to build on.
The programs also expedited loan program, the idea of this loan to payments from the State to pay off loan profits earned by the recipient (borrower) of conflict (World Bank), in terms of the result to the beneficiary's interest-free loan to Hassan. Aimed at intermediate and higher income earners who are on the waiting list in the lists of the loan application to the Fund. . The loan is applied for funding to have the House ready and financing to build dwelling is accelerated loan repayment in the form of monthly installments (120) a share for a period of 10 years, the loan is paying dividends through state loan repayment profits accelerated to the financier (the Bank) or payments as agreed, funded by profits paid in case you find the customer payment. In the second paper of the same meeting titled (real estate finance and its role in the development of real estate development and housing), a member of the real estate Committee Chamber, Dr. Bassam m. body housing finance share of UK GDP growth of 2 percent, while Germany's 55 percent and 32 percent in France.
Budi said that the reasons for the low offer on housing finance see requests for being limited to medium and high earners due to the low level of per capita income in Saudi Arabia because of the reluctance of banks expansion in housing finance in the absence of regulatory and legislative environment. Pointed out that the cost of housing for annual per capita income in the Kingdom reached 19 125 dollars at US $ 50.221 pointing out that one of the banks said that the mortgage would have a direct and immediate impact on the housing market, but after putting it into practice will help convince individuals (and entities), as it appeared to regulations to address the demand for housing by facilitating access to funding, but it does not mean a lack of supply, and about selling system will as a funding body he said the tools that developers rely on that mechanism during implementation so as to contribute to the buyer on financing construction, but with the release of the sale will developers have faced difficulty in adapting to the Saudi banks have not kept pace with this funding the sale will the size of the potential of this tool. The body paper: If we deal with the housing issue in a practical objective economic especially in funding the problem will remain for many years.
