http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.05Change: -0.16
R/$ = 12.00Change: -0.18
Au 1204.30 $/ozChange: 7.06
Pt 1155.50 $/ozChange: 7.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2003

Housing forum debates low-cost funding options

Back
Housing|Sustainable|Product|Products|Services|Solutions
Housing|Sustainable|Products|Services|Solutions
housing|sustainable|product|products|services|solutions
© Reuse this The first Housing Finance Forum was held yesterday, in Johannesburg, under the auspices of the National Housing Finance Corporation (NHFC), a development finance institution responsible for facilitating access to housing finance for low- and moderate-income communities.

CEO of the NHFC Samson Moraba said the establishment of the Housing Finance Forum stemmed from a need for vibrant debate among housing finance practitioners to realise models that are tailored to suit the South African low-income housing market.

“The challenge for those in the housing finance sector is to adopt global best practice in our country’s emerging market, while taking cognisance of our unique local features.

“Through open discussion and debate, we will be able to attain creative solutions for sustainable low-income housing finance models,” Moraba explained.

The forum deliberated whether the mortgage instrument was relevant to low-cost housing.

Simon Stockley, CEO of South African Home Loans, argued that the housing finance sector should not focus on the mortgage instrument in itself, but on the funding mechanisms underpinning it.

“The mortgage product has relevance only in relation to mature, as opposed to emerging, markets,” said Stockley.

He explained that a mortgage bond is essentially a highly-sophisticated product, which also comes at relatively high costs.

“I believe that the lower-income market requires a slightly more innovative mechanism, which is currently unavailable in the South African market, because there is lack of competition in the mortgage market,” he added.

He pointed out that, currently, competition between mortgage products is restricted, as four big banks are monopolising the market.

After researching alternative funding mechanisms, Stockley and an association of venture capitalists established South African Homeloans, the first discount home loan specialist in the country, which uses the securitisation model to raise capital.

“We assemble parts of mortgage loans and sell off income from mortgage loans directly into the capital market. The securitisation model has been highly successful for us, since we have managed to grow our market share from zero to 7% per month, within a space of four years,” he explained.

David Porteous, head of Finmark Trust, a nongovernmental organisation aimed at making financial markets work for the poor through the sustainable expansion of access to financial services, including housing finance, said there has been a swing from the mortgage to the nonmortgage model, and added that there should be a middle ground between the two models to serve the needs of the low-income market.

“There is always room for nonmortgage products, but mortgage has relevance because it is the only way to answer the affordability question in a sustainable fashion,” he said.
Edited by: Martin Czernowalow
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Municipal Services and Engineering News
BUSINESS PLAN Service level agreements will ensure services at the Tombo Thusong Centre
Multi-disciplinary engineering consulting firm GIBB has compiled a business plan, aimed at identifying challenges that exist at the multi-purpose Thusong Centres, in the Eastern Cape, to support the effective functioning of the centres. GIBB has been tasked by the...
WATER WAY The R150-million first phase of the Northern Aqueduct project is scheduled for completion in the third quarter of 2015
Municipal water and sanitation services eThekwini Water and Sanitation (EWS) says construction of the Northern Aqueduct Augmentation, which forms part of the eThekwini strategic master plan to deal with the increasing demand for water in the northern regions of...
MUNICIPAL PROFICIENCY Cesa suggests that engineers head municipal infrastructure departments
To enhance and monitor the quality of municipal infrastructure and services, engineers should head the various departments of South Africa’s municipalities as they have the necessary skills and expertise to understand the engineering aspects of the services in...
More
 
 
Latest News
Updated 7 hours ago The presidency on Thursday said it would not entertain what it called rumours and gossip about operations at Eskom. "President Jacob Zuma has been kept fully briefed about the developments at Eskom and the attempts being made by the Minister of Public Enterprises, Ms...
Updated 7 hours ago A senior US embassy official has urged the South African government to address a number of mixed messages on the openness of the country to foreign investment so as to take advantage of a growing appetite among American companies for investments into the country and...
More
 
 
Recent Research Reports
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
 
 
 
 
 
This Week's Magazine
Updated 16 minutes ago Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
Updated 16 minutes ago After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
Updated 16 minutes ago South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
Updated 16 minutes ago The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Updated 16 minutes ago Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96