Is it possible to build affordable housing?

02.04.2011 12:50
Articles about real estate | Is it possible to build affordable housing? It was felt that a square meter of new housing is very expensive. And to change anything. And buying a home is not available for the general population.
To learn how to make housing affordable in the author's exclusive article for told Honored Builder of Ukraine, General Director of JSC "NPO" Creator ", a member of the Board of Directors UBA Leonid Turchin.

If we expand the price per square meter on the components, remove all unnecessary on the basis of Rodin, that from today's prices will be exactly half. Pay for a 2-room apartment 400 UAH. or 200 thousand UAH. - Big difference!

Therefore, consider carefully what costs can be eliminated and who can take appropriate action. Authority for the year has made many important steps to address this problem, but on the problem we have to work all: the authorities at all levels, developers, community organizations and ordinary citizens.

As can be seen from the chart, the price of one square meter of construction costs of the building itself constitute only 54%. For clarity, we take the absolute numbers - 8000 UAH, the average price for 1 square. meters of housing with improved planning in Dnepropetrovsk.

For what else, besides the building, each buyer pays the apartment?

1. For the land. This is a payment for land allocation, 4%. To free up this site, you need to make the current relocation and pay a minimum of 15%. For unknown reasons, the developer still pays the city resettlement of citizens, which carried the city many years ago (30 years) and about which nobody knows and does not remember (who, whom and where otselyal), and for the memories buyer puts hard-earned 6%. TOTAL: 25%. It is clear that if, while carrying all adopted regulations and laws, developers for the construction of affordable or social housing will be allocated to ground (as it should be) free, the price per 1 sq. km. m in the house will fall by 25% to 6000 UAH. per 1 sq. km. meter.

2. The development of the city (allocation City Executive Committee for the development of engineering and transport and social infrastructure). This payment amounted to an average of 7% (4% for houses and 10% - for offices), and after removal of the tax money in our house is reduced by 7% and becomes the 5440 UAH. per 1 sq.m.

3. 14% of the price of one square meter of the buyer pays for the technical specifications (TS). Engineering Services prescribe how and where the developer to pave the engineering services and developer of paving, often for several miles, and "oversized" for the further development of the district. The law says that the money the developer must compensate the organization issuing the prescription. In practice, compensation arrangements are not spelled out, mechanisms for transferring utilities to balance the balance sheet no. But networks have to constantly maintain, and it is quite serious charges! Total: compensation for the cost of the developer utilities price per 1 sq.m. in our house falls even at least 14% and amounts to 4,320 UAH buyer.

4. The delay in agreeing. Until recently, the complexity of doing business in the construction sector (let's call it differently), Ukraine was at 179 in the world of 181, ahead of only Lesotho and Zimbabwe. 93 required approval, up to 600 signatures and the procedure is spread over a half years. Officials could not explain, for obvious reasons, for all months of delay the approval. This impressive item of expenditure.

Thanks to the new "Law on urban planning" the number of licensing procedures in the building is reduced from 93 to 23, and the deadline for receipt of all necessary decisions for the start of construction should be reduced to two months. This is a huge breakthrough: new opportunities for builders and possible reduction of prices for consumers, although many builders are concerned that although the number of points of interaction with government officials declined, "load" may increase costs and, in fact, remain the same. Only one way out: to introduce administrative, financial, criminal liability of officials for these types of offenses, because neither the adopted "Law on urban planning," nor in any other documents it has not spelled out.

Theoretically, if we can remove these components, price per square meter of housing may fall in the future twice, and 2-bedroom apartment of 48 sq.m. absolutely can really make 207 UAH. (Equivalent to $ 26 million). Perhaps, this issue must be political. Power is on the shoulder, and a lot to deal done. From the builders say that we had better build with a minimum of 5-7% profit, than to stand, what we do: only because of this, my company was able to withstand the crisis.

Of course, all this is possible only if the efforts of the authorities (especially local authorities, because the laws of the "top" is already taken, but do not work), developers, social movements will be combined and all will operate on a single result, understand the objectives the same and look in one direction. Should be lobbying for the construction industry in the higher authorities to make laws. Need to create a self-regulatory organizations.

Continue. Now directly to construction costs. In one square meter of housing construction cost of building the box is 54%. It was a few years virtually unchanged, and in recent months started to grow very seriously.

Components of the cost of construction of "boxes":

1. Building materials. A steady rise in the cost of building materials in the different groups it ranges from 1% to 10% per month. If the earlier building materials in the cost per square meter was 35% (and in the cost of building the box 65%), now this figure has gone up. Moreover, the expected significant growth in prices for construction materials in connection with the rising costs of energy.

2. Salary. With the onset of the crisis have been sharply reduced wages in construction. In our company we talked to people and to save the team, it was decided such a solution. But how long can not continue. We all go to the shops. The cost of food and medicine, energy has increased, wages decreased builder, and if salaries are not raised, professionals go into other industries.

3. Depreciation of construction equipment (plus the energy consumption). No comment here: each according to his monthly payments to see how prices rise.

Conclusion: The cost of actual construction (that which is now in square meters is 54%) of the independent reasons will seriously increase.

How else can we reduce the cost of 1 sq. m. housing? When buying an apartment, people often take out a bank loan. Today it is 18-20%. In most countries, our neighbors in Russia (CIS countries - also in Kazakhstan) have programs where the interest on the loan obligations of the borrower pays to the state, and they are designed for the general population. We have similar programs, unfortunately, is not so widely distributed (this year for interest on mortgage state already has allocated UAH 500 million. - Ed.).

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