Housing Finance

Question 1

Self finance features and disadvantages and advantages

Answer 1

Features
Savings
Incremental construction
In mostly real areas
Takes long time

Advantages
Affordable
Low risk

Disadvantages
Takes long which makes it more expensive as time passes
Affordabeletej is dependent of savings
Cost of herising
‘low buying power due to no economics of sale

Question 2

Installment sales features, adv and disadv

Answer 2

Features
Developer lets buyer buy property over a specified period of time with instalinements and is written in installment agreement

Advantages,
- lower upfront payments

Disadvantages
Ties up developer finance- unable to start new problems
Risk assessment capabilities of developers
Lumpy installment payments
Risk to purchaser

Question 3

Pre sales features, adv and disadv

Answer 3

Features
Upfront payment the developer builds

Advantages
Low risk for developers
To see if there is demand for a product
Enables developers to access finance through banks

Disadvantage
Funding availabily of end user
Constructionand quality risk of land user

Question 4

Pension backed loan features, adv and disadv

Answer 4

Features
Medium sized loan secured by pension fund savings
Longer wan revised and cheaper interest rates

Advantages
House is built in stages
Does not lose house in case of default
-pension use reduces interest rates
Disadvantages

Loan sizes is dependent on pensions
Lose pension an default
Housing process is done in stages