Affordable Housing to benefit small home buyers or just builders, babus and banks?


Many good news were drummed for affordable real estate and housing finance industry which has seen rapid development and growth in real estate sector and infrastructure space during last few years. Good norms for FDI and tax incentives for REITs, besides focus on low cost housing, infrastructure development and the budget allocation for development of smart cities along with promises to deliver housing for all.. Development of Smart Cities, may provide habitation for lower / middle classes, requirement of built up area for FDI is reduced and capital conditions reduced. FDI funding promoted affordable housing segment or just helped erect some empty built or half-built towers sucking all savings off the small households?

REITs were made more attractive to attract and encourage investments in the sector by providing tax incentives to encourage retail investors into commercial real estate and provide a source of funding to undertake more projects. Allocate more via National Housing Bank to boost low cost affordable housing for urban poor and allocation for development of rural housing? Proposals such us urban infra projects, development of Metro projects in cities with population, setting up smart industrial cities and steps for reviving the SEZs is trigger job creation and stimulate the demand for housing? Proposal for investment in national highways and state highways along with development of airports in tier I & II cities boosting infrastructure and industrial development..

Such are visions towards shaping future and spreading the development hype across the board.. But at another level, affordable home bubble operates despite financial crises or demolishing some corrupt twin towers erected by its own breed for profit, no way any of us can imagine how bad things are really getting… The West had burned itself with its fancy Home Ownership Strategies: extending affordable home to low-income buyers. Opening door for the home loan bazaars, financiers and lending industries to develop new products, aggressively targeting low-income people. While burden of public housing was lifted off government’s shoulders, to unsuspecting families.

Finally, blame the victim concept in home loan crisis ignores the fact that appified and mobified finance bazaars has developed and promoted complex financial instruments designed to tempt and confuse borrowers. No government can take strong action to force its partner banks and builders to restructure their greed. Banks now tasted making money not on the interest over the course of a loan but on the sale of asset-backed security. So, they are incentivized to allow extorting as many new owners for same property. As the government’s entire housing program is based on shifting the burden away from banks, why should banks negotiate instead of looting and fooling home owners? Read more at source

1 thought on “Affordable Housing to benefit small home buyers or just builders, babus and banks?”

  1. Cronies of comical financial systems based on supply ↹ demand with little or no government control 😂 So excuse of old era hindered growth of digital financial sector for more than 50 years – this is true “Fear PR for Profit”

Leave a Reply

Your email address will not be published. Required fields are marked *