We all came across subprime crises and its impact Globally. This is a common phenomenon & to avoid this situation in developing countries, we should focus on the Affordable Housing cost.
How to find out the affordability index? In my opinion every individual has his own capacity of payment of loan. Affordable Housing is one of the major need for an individual and family. Hence the house can be termed as affordable when the cost of the home is lower than the five years annual income of the person/family.
The plan can be as follows
1) Advertise in the news paper about a Scheme of 10,000 Flats with cost of approximate 10-12 lakhs.
2) Application fees is about Rs.5000 for each individual
3) Looking at the response from say atleasy 2,00,000 people the amount will be INR 1000 million which can be used for preliminary expenses such as land develoment and engineering works.
In my opinion this can be a huge hit formulae. Recently Delhi Development Board has successfully done this.
TATA Affordable Housing is coming up with affordable Affordable Housing at boisar in mumbai and also reliance is planning for the same at Hariyana. If the likes like TATA and Reliance is thinking in this line this will definitely be next big thing in India.
Various builders in India have announced projects catering to the low budget Affordable Housing in India with 1 & 2 BHK apartments projects targeting the Lower Income Groups and EWS (Economically Weaker Section) Categories as well as affordable 3 & 4 BHK flats for the Middle Income Groups. The Individual Unit prices of the houses under the Affordable Housing projects in India are touted to be around Rs. 5 – 25 Lakhs for 1 & 2 BHK Flats, Rs. 25 – 40 Lakhs for 3 BHK and Rs. 40- 60 Lakhs for 4 BHK Units.
Renowned Builders & Developers like Ansals, DLF, Omaxe, BPTP, Unitech, Vatika Group, Raheja etc. have advertised projects under affordable housing in India. Thus, the dream of the common man of owning an affordable quality home in India is not far.
Some Major Issues are
The biggest barriers to realtors providing affordable housing were skyrocketing of prices of land and raw materials, and over-taxing of Affordable Housing that accounts for almost one-third of the cost. For instance, 18 departments levy taxes on each house, constituting one-third of the Affordable Housing cost. If this is made more rational and transparent, and levied through a single-window, then it will help the developers a great deal in providing affordable housing.