Housing Financing Facility and Affordability Level of Bumiputera within Iskandar Malaysia

Ismail, Akhmad Ghofar

doi:10.7763/joebm.2015.v3.300

Cited by 4 publications

(9 citation statements)

References 2 publications

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“…It is also envisaged as very high expenditure on basic needs such as food imped the most households to invest on housing. With all these impediments, access to housing finance is the prominent element in purchasing as well as building owner built houses (Ismail et al , 2015). However, there are indicators as the absence of loan and credit services, and high interest rates aggravate the problem of home ownership (Kitila, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Grounded on Ismail et al (2015), there are some significant housing finance problems that makes housing is unaffordable. The finding of the study indicates that problems such as loan facility, finance application process, types of occupation, expenditure per month, income, government policy, house price, installment per month and high deposit are significant elements for housing affordability (Ismail et al 2015). According to the study conducted by Iyandemye, Barayandema, and Gasheja (2018), the lack of secondary mortgage market increases the risk for mortgage suppliers and the change of the mortgage law in 2011 influenced the financial institutions to shift from short-term mortgage lending to middle-term mortgage financing which resulted in increase of payment-to-income ratio from 33.33% to 45.83% and decrease of LTV from 30% to 25%.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Likewise Ismail et al (2015) state the relationship of housing finance and housing affordability. The contributing elements of housing affordability are loan facility, financial application process, types of occupation, expenditure per month, income, government policy, house price, installment per month, short term loans, high interest rates, financial cost burden and high deposit (Ismail et al, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

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Identifying the barriers to housing finance in Ethiopia

Asnakew

Amogne

2022

IJHMA

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Purpose The accessibility of housing for many purposes is more influenced by the functioning of housing market. As access to housing is an expensive and long-term exertion of household, looking for appropriate housing fund is necessary whether the source of fund is private saving or mortgage. However, insufficient finance in Ethiopia is a reason for inaccessible of land and housing by the low- and middle-income people. This study aims to identify the barriers to access finance in the study area. Design/methodology/approach This study adopted a qualitative and quantitative research approach to investigate the barriers of housing finance. To undertake and increase the relevance of this study, primary and secondary, qualitative and quantitative data were used. Primary data were collected from respondents; focal person’s and key informants. Both descriptive statistical analysis and relative importance index analysis was deployed for this study. In addition, the quantitative data were analyzed using logistic regresion model. Findings The result of this study found that in Ethiopia at all, there is no enough mortgage and long-term lending banks. The result of this study inspects some variables significantly affect the access to finance. The result of this study will help the government in buildup of financial institutions in many perspectives. Financial institutions and clients may also be beneficiary through stiffen housing finance system. Originality/value The barriers of access to finance were not sufficiently studied in Ethiopia. Therefore, this study may be a pioneer for the researchers, as it did not cover the whole area of the country to study and also appoint the government to reform the financial sector based on the findings of the researches.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Identifying the barriers to housing finance in Ethiopia

Asnakew

Amogne

2022

IJHMA

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“…This is burdensome, as they also have to pay monthly housing rent. Ismail et al (2015) and Fuster and Zafar (2015) found that high ID affects the affordability of housing finance. Moreover, the down payment was linear spline in the wealth to house value ratio term to capture the effect of down payment constraints.…”

Section: Introductionmentioning

confidence: 99%

A new model for Islamic cooperative mortgage of housing finance

Nasir

Abdullah

2019

IJHMA

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Purpose This study aims to propose a new model of Islamic cooperative mortgage of housing finance (ICOM) to provide a lower monthly initial amount with a longer tenure for the low- and middle-income members. This model is developed to ease the burden on borrowers concerning the high initial down payment (ID). Design/methodology/approach The ICOM model is a no-interest mortgage and is developed based on the cooperative home mortgage model by Ebrahim (2009). The model is verified using numerical examples to ensure its feasibility to produce lower monthly initial amounts and compared to the cooperative home mortgage. Findings From the numerical example, the ICOM model shows a lower monthly initial amount with a longer tenure compared to the cooperative home mortgage. The monthly payment is also lower than the cooperative home mortgage. Research limitations/implications The authors compare their model with Ebrahim’s (2009) cooperative home mortgage because of a constraint of limited previous studies on housing finance. Therefore, this model is developed by considering the unaffordability of the initial down payment among low-income borrowers. As this model introduces a lower monthly initial amount, the authors expect it can reduce the unaffordability problem of high initial down payment. Practical implications The authors also expect that a lower monthly initial amount with a longer tenure can ease the burden among the low-income borrowers by reducing their consumption on housing. Originality/value This paper provides a non-interest Islamic cooperative mortgage and lower monthly initial amount with a longer tenure for the low- and middle-income borrowers.

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“…Additionally, the deficiency of supply of affordable housing had also resulted in the building of squatter buildings as another option to reduce the cost of living [4] since many of them cannot afford to purchase and own a property due to high pricing [5]. As a result of those underlying causes, the unfortunate group had no choice but to illegally build their houses at the squatter settlements despite the occurrence of various social problems and insufficient basic facilities at the area [6].…”

Section: Introductionmentioning

confidence: 99%

Eradicating Squatters through Resettlement Programme: A Conceptual Paper

2016

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Abstract. The existence of squatters had caused many issues including poverty, increasing social problems, drug addiction, criminal and low education level. Sadly, the State of Johor is still among a few other states in Peninsular Malaysia with the highest numbers of squatter families. These squatter settlements are not only inhabited by the local people, but consist of foreigners too. The environmental condition is not fitting, with poor sewage system and unplanned housing construction. Consequently, these issues had caused bad images and perception to the general public, as well as to the tourists. In Malaysia, Resettlement Programme is one of the most significant mechanisms in tackling squatters" settlements issue. Hence, the Johor State Government had taken various approaches in trying to eradicate the squatter settlements by relocating them to new locations with planned and better housing. This conceptual paper aims to examine the current literature and assess previous similar study in order to establish an understanding of the crucial provision of resettlement area in trying to eliminate squatters. It employs a qualitative design through assessment related literature and studies. The results confirmed for a further review of resettlement program. Findings from this study further suggest a comprehensive study of the issues revealed.

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Housing Financing Facility and Affordability Level of Bumiputera within Iskandar Malaysia

Cited by 4 publications

References 2 publications

Identifying the barriers to housing finance in Ethiopia

Identifying the barriers to housing finance in Ethiopia

A new model for Islamic cooperative mortgage of housing finance

Eradicating Squatters through Resettlement Programme: A Conceptual Paper

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