Interest rate on mortgage is too high
EDITOR—Which population are real estate developers in Uganda targeting? It is good to hear that they are doing everything to enable Ugandans get decent accommodation.
EDITOR—Which population are real estate developers in Uganda targeting? It is good to hear that they are doing everything to enable Ugandans get decent accommodation.
Now that our local banks can fully finance mortgages, this will enable many people to buy houses in future.
However, it is worth noting that an interest rate of 16 percent is too high and prices of properties in Uganda do not correlate with the income of most Ugandans. A quick browse through the website of the National housing and construction Corporation will show that one of their cheapest houses range from sh100m onwards.
Compared to the average income of civil servants in Uganda, many Ugandans cannot afford these houses. If a primary school teacher who earns around about sh170,000 per month is to buy the cheapest house from the National Housing at sh100m and gets a full mortgage it will take him almost 100 years to pay off the loan! Is that possible? A responsible housing scheme should be able to accommodate the least paid in our society.
What made countries like Malaysia come out of poverty was a very comprehensive national plan from fixing minimum wage, agricultural mechanisation and providing affordable housing to all her citizens. Perhaps it is high time our government got involved in regulating this vital sector of real estate rather than leaving it to the private sector alone.
I. Zubeir
Malaysia
Now that our local banks can fully finance mortgages, this will enable many people to buy houses in future.
However, it is worth noting that an interest rate of 16 percent is too high and prices of properties in Uganda do not correlate with the income of most Ugandans. A quick browse through the website of the National housing and construction Corporation will show that one of their cheapest houses range from sh100m onwards.
Compared to the average income of civil servants in Uganda, many Ugandans cannot afford these houses. If a primary school teacher who earns around about sh170,000 per month is to buy the cheapest house from the National Housing at sh100m and gets a full mortgage it will take him almost 100 years to pay off the loan! Is that possible? A responsible housing scheme should be able to accommodate the least paid in our society.
What made countries like Malaysia come out of poverty was a very comprehensive national plan from fixing minimum wage, agricultural mechanisation and providing affordable housing to all her citizens. Perhaps it is high time our government got involved in regulating this vital sector of real estate rather than leaving it to the private sector alone.
I. Zubeir
Malaysia