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

OVERVIEW 1. CONTEXT 2. CHALLENGES 3. INNOVATIONS 1

CONTEXT A background to the challenges and innovations • Desperate need for quality housing MARKET LAND/ • Basis, and there is an abundance • Infrastructure for development INFRASTRUCTURE • Vision and strategy DEVELOPMENT • brings all aspects together • Delivery CONSTRUCTION • Needs to focus on capacity, resources and supply chain • SALES - the market determines exit EXIT • Product, affordability and finance is key • Good risk adjusted returns are possible RETURNs 2

CHALLENGES Drawn from actual experience – it’s still about the basics • Lack of data MARKET • What is “real” demand (and supply) • Markets/ home owner access to finance • Access to land – land title LAND/ • Ability to use as security INFRASTRUCTURE • Lack of infrastructure – cost of providing • Statutory infrastructure (affects all) • Access to finance (appropriate finance) DEVELOPMENT • Approvals • Statutory infrastructure/ capacity • Corruption • Industry capacity CONSTRUCTION • Access to resources (supply chain) • Importation (cost and time) • Ultimately all impacts on the ability of someone to buy a house EXIT 3

“INNOVATIONS” Actual solutions – focusing on practicality • Detailed, in depth research MARKET • Ability to tracking • Alternatives (provided by “green” options) LAND/ • PPP’s benefit (developer, authority, community) market INFRASTRUCTURE • Lifestyle DEVELOPMENT • Affordability levels • Community involvement • Presence on the ground CONSTRUCTION • Build capacity, supply chain innovations • Liquidity solutions EXIT • Rent to buy 4

Discussion Thank you! 5