"New Proposed Methods for Speedy Home Mortgaging"
Revamped Article:
In a recent parliamentary request, Deputy Erbolat Sattybaldin raised concerns about the rising affordability issues related to housing in Kazakhstan, pointing out the odd prioritization of acquiring a car over stable housing.
"It's worrying that state policy supports car purchases while the issue of secure housing - homeownership - takes a backseat," Sattybaldin pointed out.
To tackle this issue, the deputy put forth several proposals aimed at lowering the cost of housing:
A Step Towards Ownership: The Rent-to-Own Idea
Citing the hefty initial down payment as a major barrier for many, Sattybaldin suggested that a portion of rental payments for rented homes could be allocated towards the future first down payment.
"If a tenant pays 200,000 tenge per month, 50,000 could go towards the initial down payment. Over three years, a person could not only accumulate the required amount for housing but also demonstrate creditworthiness. This approach would particularly benefit youth, single mothers, and socially vulnerable citizens," Sattybaldin explained.
Simplifying the Home-Buying Process: The Digital Quick Mortgage System
The deputy proposed the creation of an integrated online platform that brings together state bodies and banks, much like car loan systems.
"This would streamline the process of purchasing a home, making it quick, hassle-free, and devoid of unnecessary red tape," he asserted.
Revamping Financing Mechanisms: Modernization for Affordable Mortgages
Sattybaldin called for allowing additional banks to participate in the housing savings system and suggested involving the ENPF funds in mortgage lending to establish a competitive market, expand choices, and lower interest rates.
A Fair State Support: Targeted Subsidies for the Truly Needy
In the deputy's opinion, state programs should cater exclusively to those who genuinely lack housing, and subsidies should only be offered for the first home purchase.
"Exclude subsidies for secondary market purchases and investment acquisitions. Housing policies should tie in closely with regional development programs to balance migration and comprehensively develop regions," he added.
In the past, we've covered proposed changes to the housing payment mechanisms as well as the potential number of Kazakhstanis projected to gain homeownership by 2025. Our site has also uncovered details about who could claim a government-provided apartment, how to check one's status, and what steps to take if you're not yet on the list. You can find these details in the article titled: Navigating the Housing Queue in Kazakhstan: Who Qualifies for a Government Apartment?
Recent Developments:
Deputy Erbolat Sattybaldin commented, "Enough with the pensioner-related dramas. Your pension decisions are unfair to society. If they scrap it, it should be across the board, regardless of income thresholds. If I had my way, I wouldn't factor it in at all. With the current inflation, a pensioner can barely afford a loaf of bread."
A Law-abiding Citizen suggested, "Banks should be mandated to divide interest and principal debt evenly across the entire loan term. They charge high interest at the beginning of the loan, making it challenging for people paying off their loans to make a significant dent. It's simply unfair."
VNM replied, "Law-abiding Citizen, I don't recall the specifics of annuity and differential payments these days. Annuity payments (interest first) should be penalized for being predatory. There's no gain in repaying early if you can, then banks complain about increased loan defaults. It's plain deceit."
O'SEK wondered aloud, "Who are they lobbying for this time?"
Bakdaulet Askaruly suggested, "Set the interest rate at 4% for first-time home buyers and 7% for subsequent homes if desired. Make mortgages accessible with minimal bureaucracy since the property acts as collateral."
- In light of the rising affordability issues with housing in Kazakhstan, Deputy Erbolat Sattybaldin proposed a revamping of financing mechanisms to make mortgages more affordable for first-time home buyers, particularly from the socially vulnerable categories like youth and single mothers.
- Personal finance expert VNM supported the idea of fair interest rates for first-time home buyers, suggesting a set rate of 4%, and a higher rate for subsequent homes, aiming to make homeownership more accessible with minimal bureaucracy.
