Experts claim taxes on excess profits and personal refinancing for “10” years
A number of banks recently moved to cut the mortgage years of the subsidized loan. Economists praised the step, and indicated that it will work to balance prices and curb the rise in order to bridge the financing risk gap, noting that one of the proposed solutions is also to impose taxes on excess profits, and personal refinancing for “ten” years.
And I learned “previously” that extending the financing period beyond the retirement age, that is, 70 years, will be within very narrow limits, for those who are close to the retirement age, and he is left with only a few years of service.
The years of mortgage financing provided by banks were previously 30 years, but they have now been reduced to 25 years. Interested parties believe that reducing them to less than that will have positive results on the borrower’s income, as well as on real estate prices.
Commenting on the issue, the economic expert Ahmed Al-Shehri told Al-Sabq: There are huge efforts made by the state to address the citizen’s housing nationwide, under the constant guidance and supervision of the Crown Prince and Chairman of the Council of Economic Affairs and Development, Prince Muhammad bin Salman – may God protect him -.
Al-Shehri indicated that all policies that are currently applied in the field of family housing depend on financial and regulatory solutions, and increase horizontal and vertical expansion.
He added: So we currently see that commercial financing solutions and government financial support have taken a fast track to ease housing shortages. In spite of that track, there is the organizational part, as it is going largely converged, but its results in practice may take time to clear plans and coordinate efforts between the relevant authorities, in addition to increasing the vertical and horizontal expansion of housing in cities, implementing white land fees, and distributing Free land for citizens.
Increased ownership
“The monthly”: Commercial banks, with the support of the Monetary Agency, have contributed to increasing the pace of ownership, but commercial financing solutions remain the most costly solution for citizens, especially since the monthly deduction rate reaches 65 percent of the salary. Despite this, it succeeded in reducing the housing ownership gap considerably.
Reducing the years is positive
He continued: Theoretically, the aim of reducing the years of real estate financing aims to bridge the gap in financing risks that are recognized by banks, but their economic effects are positive to reduce housing prices that are based on financing solutions.
Excess profits taxes
He said: As an economic observer, we need to increase the areas of housing plans by imposing other stages of white land fees, and the imposition of excess profits fees or taxes is a quick way to rebalance real estate prices in line with the monthly wages of citizens in the public and private sectors. And real estate decision-makers can use these fees to finance the delivery of services and establish new schemes that accelerate citizens’ ownership through non-financing solutions from commercial banks.
Stimulate
He added: From an economic point of view, the excess profits fees can be stopped when residential properties reach acceptable price levels with banks and the monetary institution, especially if all revenues are used to increase the supply of residential lands, because there are many salaries capable of building a house when residential lands are available, and through programs Personal financing and loans, in particular for the construction of mini-housing units, not exceeding 250 square meters in exchange for owning housing in terms of no more than five years.
Return the personal loans for 10 years
He concluded: I also believe that the Monetary Agency can contribute to solving the housing crisis by re-launching personal loans programs that span ten years as it was in the past, and according to the prevailing interest rate for personal loans; this type of financing solutions takes advantage of low global interest rates to solve a crisis Housing, and accelerates the ownership of housing in short periods of time.
Mortgage
Saudi banks
Mortgage loans
Qasim Al-Khobar
Already
2020-02-23
A number of banks recently moved to cut the mortgage years of the subsidized loan. Economists praised the step, and indicated that it will work to balance prices and curb the rise in order to bridge the financing risk gap, noting that one of the proposed solutions is also to impose taxes on excess profits, and personal refinancing for “ten” years.
And I learned “previously” that extending the financing period beyond the retirement age, that is, 70 years, will be within very narrow limits, for those who are close to the retirement age, and he is left with only a few years of service.
The years of mortgage financing provided by banks were previously 30 years, but they have now been reduced to 25 years. Interested parties believe that reducing them to less than that will have positive results on the borrower’s income, as well as on real estate prices.
Commenting on the issue, the economic expert Ahmed Al-Shehri told Al-Sabq: There are huge efforts made by the state to address the citizen’s housing nationwide, under the constant guidance and supervision of the Crown Prince and Chairman of the Council of Economic Affairs and Development, Prince Muhammad bin Salman – may God protect him -.
Al-Shehri indicated that all policies that are currently applied in the field of family housing depend on financial and regulatory solutions, and increase horizontal and vertical expansion.
He added: So we currently see that commercial financing solutions and government financial support have taken a fast track to ease housing shortages. In spite of that track, there is the organizational part, as it is going largely converged, but its results in practice may take time to clear plans and coordinate efforts between the relevant authorities, in addition to increasing the vertical and horizontal expansion of housing in cities, implementing white land fees, and distributing Free land for citizens.
Increased ownership
“The monthly”: Commercial banks, with the support of the Monetary Agency, have contributed to increasing the pace of ownership, but commercial financing solutions remain the most costly solution for citizens, especially since the monthly deduction rate reaches 65 percent of the salary. Despite this, it succeeded in reducing the housing ownership gap considerably.
Reducing the years is positive
He continued: Theoretically, the aim of reducing the years of real estate financing aims to bridge the gap in financing risks that are recognized by banks, but their economic effects are positive to reduce housing prices that are based on financing solutions.
Excess profits taxes
He said: As an economic observer, we need to increase the areas of housing plans by imposing other stages of white land fees, and the imposition of excess profits fees or taxes is a quick way to rebalance real estate prices in line with the monthly wages of citizens in the public and private sectors. And real estate decision-makers can use these fees to finance the delivery of services and establish new schemes that accelerate citizens’ ownership through non-financing solutions from commercial banks.
Stimulate
He added: From an economic point of view, the excess profits fees can be stopped when residential properties reach acceptable price levels with banks and the monetary institution, especially if all revenues are used to increase the supply of residential lands, because there are many salaries capable of building a house when residential lands are available, and through programs Personal financing and loans, in particular for the construction of mini-housing units, not exceeding 250 square meters in exchange for owning housing in terms of no more than five years.
Return the personal loans for 10 years
He concluded: I also believe that the Monetary Agency can contribute to solving the housing crisis by re-launching personal loans programs that span ten years as it was in the past, and according to the prevailing interest rate for personal loans; this type of financing solutions takes advantage of low global interest rates to solve a crisis Housing, and accelerates the ownership of housing in short periods of time.
01:14 AM
Experts claim taxes on excess profits and personal refinancing for “10” years
A number of banks recently moved to cut the mortgage years of the subsidized loan. Economists praised the step, and indicated that it will work to balance prices and curb the rise in order to bridge the financing risk gap, noting that one of the proposed solutions is also to impose taxes on excess profits, and personal refinancing for “ten” years.
And I learned “previously” that extending the financing period beyond the retirement age, that is, 70 years, will be within very narrow limits, for those who are close to the retirement age, and he is left with only a few years of service.
The years of mortgage financing provided by banks were previously 30 years, but they have now been reduced to 25 years. Interested parties believe that reducing them to less than that will have positive results on the borrower’s income, as well as on real estate prices.
Commenting on the issue, the economic expert Ahmed Al-Shehri told Al-Sabq: There are huge efforts made by the state to address the citizen’s housing nationwide, under the constant guidance and supervision of the Crown Prince and Chairman of the Council of Economic Affairs and Development, Prince Muhammad bin Salman – may God protect him -.
Al-Shehri indicated that all policies that are currently applied in the field of family housing depend on financial and regulatory solutions, and increase horizontal and vertical expansion.
He added: So we currently see that commercial financing solutions and government financial support have taken a fast track to ease housing shortages. In spite of that track, there is the organizational part, as it is going largely converged, but its results in practice may take time to clear plans and coordinate efforts between the relevant authorities, in addition to increasing the vertical and horizontal expansion of housing in cities, implementing white land fees, and distributing Free land for citizens.
Increased ownership
“The monthly”: Commercial banks, with the support of the Monetary Agency, have contributed to increasing the pace of ownership, but commercial financing solutions remain the most costly solution for citizens, especially since the monthly deduction rate reaches 65 percent of the salary. Despite this, it succeeded in reducing the housing ownership gap considerably.
Reducing the years is positive
He continued: Theoretically, the aim of reducing the years of real estate financing aims to bridge the gap in financing risks that are recognized by banks, but their economic effects are positive to reduce housing prices that are based on financing solutions.
Excess profits taxes
He said: As an economic observer, we need to increase the areas of housing plans by imposing other stages of white land fees, and the imposition of excess profits fees or taxes is a quick way to rebalance real estate prices in line with the monthly wages of citizens in the public and private sectors. And real estate decision-makers can use these fees to finance the delivery of services and establish new schemes that accelerate citizens’ ownership through non-financing solutions from commercial banks.
Stimulate
He added: From an economic point of view, the excess profits fees can be stopped when residential properties reach acceptable price levels with the banks and the monetary institution, especially if all revenues are used to increase the supply of residential lands, because there are many salaries capable of building a house when residential lands are available, and through programs Personal financing and loans, in particular for the construction of mini-housing units, not exceeding 250 square meters in exchange for owning housing in terms of no more than five years.
Return the personal loans for 10 years
He concluded: I also believe that the Monetary Agency can contribute to solving the housing crisis by re-launching ten-year personal loan programs as used in the past, and according to the prevailing interest rate for personal loans; this type of financing solutions takes advantage of low global interest rates to solve a crisis Housing, and accelerates the ownership of housing in short periods of time.
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