http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2003

Housing forum debates low-cost funding options

Back
Johannesburg|FinMark Trust|Housing|National Housing Finance Corporation|NHFC Samson Moraba|South African Home Loans|Creative Solutions|Development Finance Institution|Finance|Finance Practitioners|Finance Sector|Mortgage Product|Product|Products|Services|Solutions|Sustainable Low-income Housing Finance Models|David Porteous|Simon Stockley
|Housing||Products|Services|Solutions||
johannesburg|finmark-trust|housing|national-housing-finance-corporation|nhfc-samson-moraba|south-african-home-loans|creative-solutions|development-finance-institution|finance|finance-practitioners|finance-sector|mortgage-product|product|products|services|solutions|sustainable-low-income-housing-finance-models|david-porteous|simon-stockley
© 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 42 minutes ago JOHANNESBURG (miningweekly.com) – The Royal Institution of Chartered Surveyors (RICS) has appointed TC Chetty as South Africa country manager, tasking him with leading RICS through the next stage of its strategic development in the country. Chetty previously served...
Updated 1 hour 12 minutes ago Cash-hungry solar photovoltaic (PV) projects in sub-Saharan Africa are largely assessed by lenders on a case-by-case technical basis and, while some standard technical and nontechnical aspects would be required to reach financial close, these are not entirely...
Updated 1 hour 41 minutes ago Embattled state-owned entity South African Airways (SAA) would consider an equity partnership, Public Enterprises Minister Lynne Brown said on Thursday. Asked about the possibility of an equity partnership, she told reporters in Cape Town that SAA was investigating...
More
 
 
Recent Research Reports
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...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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