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- If 'Middle Class has no where to live', then what about the lower class...:(CommentQuote0Flag
- Its quite disheartening to see that someone representing today’s young generation still divides the society in to base less classes … Lower class, Middle class…
Anyways for the sake of argument – you can suggest something for the so called lower class - like.. they can live in ‘jhuggis’…
But the point is that though all the major developers across the country have special schemes for the MIG it is still unaffordable for the common people. Blame it on the steep interest rates or the so called ‘bubble’ in the real estate sector. To own a home still seems to be a distant dream for the working class people with limited disposable income.CommentQuote0Flag
- Light at the end of tunnel
Its ridiculous that some one is trying to escalate over a simple remark, and introducing politics at the forum.
Classification of income groups is an essential part of demographics and form basis in formulating economic policies.
Any ways to add to the information huge public housing schemes like National Urban Renewal Mission and Indira Awaas Yojana are under progress at various stages at different parts of the country and due focus has been given on the EWS (Economically Weaker Section) category.
People having incomes lower than Rs 25,000 a year will be alloted the flats at price band below 1-1.5 lakh, and similarly the flats will be given to the families in accordance with their economic state. The loan facility is also there in place.
Besides public construction projects, builders and developers too are encouraged for building EWS flats and a host of incentives like rebates in land rates, finance, taxes etc is also being offered to them. And it is working in tier 2 and tier 3 cities!!!CommentQuote0Flag
- Housing the urban poor
Housing for the urban poor - the mantra for a round of back patting for the politician, raised eyebrows for the bureaucrat, and eternal hope for the poor! How tenable is this laudable goal?
Unfortunately, urban housing is trapped in the gridlock of outdated policy prescriptions and bureaucracy. Successive governments have taken up housing as a priority welfare activity, built a large number of houses, and allotted them to the urban poor. Most such units are heavily subsidized, with the remaining cost shared between a bank and the beneficiary.
Many problems, however, plague the existing arrangement.
With growing urbanization, demand has far outstripped supply. Further, since land is scarce in cities, its use needs to be optimized. Next, migration is a definitive trait of the urban poor and any urban housing policy needs to account for it. Finally, in the present arrangement, it is common place to find people selling away their allotted units, and moving back into squatter slums.
A substantial portion of houses in government colonies are generally sold or leased out, thereby defeating the very purpose.
Housing policies need to meet the broader economic objectives, and ensure regulated urban development. How do we help our fast-growing cities, already constrained by lack of basic civic infrastructure, to cope with the massive, unregulated influx from rural areas, without appearing unsympathetic? Ultimately, poverty elimination and other goals will be achieved only if the city is on a vibrant growth trajectory.
Any urban housing policy should prioritize that category of urban poor who are essential foot soldiers in the urban growth engine. We need to build an adequate stock of housing and create a market in rented housing for the poor. A database of beneficiaries can be prepared and they can be allotted rent vouchers. These can be allotted for one year, and then renewed, thus keeping a check on fraudulent practices such as sales and subleases. As an incentive, the house can be finally transferred to the tenant after a period of responsible habitation, under certain conditions. This arrangement will legalize the reality of sales and rental transactions of the houses allotted to the urban poor.
Residents of such colonies would not suffer from the problem of uncertainty in tenure, and will have access to all basic civic facilities. In any case, all government housing schemes now have a significant bank loan share, which the beneficiary has to repay in monthly installments. Rental vouchers would only substitute this with the rent.
A public private partnerships should be encouraged to help us leverage private resources. Given the huge demand for lower income housing and the plethora of long-tenure financing options, these ventures also offer vast potential for real estate developers.CommentQuote0Flag
- Something is better than nothing
The Centre is about to finalise a scheme aimed at making housing more affordable for the poor in urban areas, by providing them with home loans at subsidised interest rates.
The scheme basically proposes to increase credit flow to the economically weaker sections (EWS) and lower income groups (LIG) who find it difficult to purchase a house due to problems in getting loans from banks and the high interest rates prevailing in the financial market.
Under the scheme, which is being given finishing touches by the Ministry of Housing and Urban Poverty Alleviation, a five-year rebate on the interest payable on the housing loan amount will be given to borrowers from low-income households.
According to a senior official, the loans will be made available at reduced interest rates by designated public sector banks and government-run lending agencies in all states. These, in turn, will be compensated by the ministry for the difference between market rates and the lower rates.
Source: Indian Express, 06-Sep-2007CommentQuote0Flag
- Only the builders are making money
No one has to gain from this so-called bubble except for the buildersCommentQuote0Flag