New Developments in Housing Finance and Challenges facing - - PowerPoint PPT Presentation

The African Union for Housing Finance

“BUILDING TOWARDS A BOOM” New Developments in Housing Finance and Challenges facing practitioners A developers perspective

September 2010

1

OVERVIEW

• 1. CONTEXT
• 2. CHALLENGES
• 3. INNOVATIONS

2

CONTEXT

A background to the challenges and innovations

MARKET DEVELOPMENT CONSTRUCTION EXIT RETURNs

• Desperate need for quality housing
• Basis, and there is an abundance
• Infrastructure for development
• Vision and strategy
• brings all aspects together
• Delivery
• Needs to focus on capacity, resources and supply chain
• SALES - the market determines exit
• Product, affordability and finance is key
• Good risk adjusted returns are possible

LAND/ INFRASTRUCTURE

3

CHALLENGES

Drawn from actual experience – it’s still about the basics

MARKET LAND/ INFRASTRUCTURE DEVELOPMENT CONSTRUCTION EXIT

• Lack of data
• What is “real” demand (and supply)
• Markets/ home owner access to finance
• Access to land – land title
• Ability to use as security
• Lack of infrastructure – cost of providing
• Statutory infrastructure (affects all)
• Access to finance (appropriate finance)
• Approvals
• Statutory infrastructure/ capacity
• Corruption
• Industry capacity
• Access to resources (supply chain)
• Importation (cost and time)
• Ultimately all impacts on the ability of someone to buy a house

4

“INNOVATIONS”

Actual solutions – focusing on practicality

MARKET LAND/ INFRASTRUCTURE DEVELOPMENT CONSTRUCTION EXIT

• Detailed, in depth research
• Ability to tracking
• Alternatives (provided by “green” options)
• PPP’s benefit (developer, authority, community) market
• Lifestyle
• Affordability levels
• Community involvement
• Presence on the ground
• Build capacity, supply chain innovations
• Liquidity solutions
• Rent to buy

5

Discussion

Thank you!