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The investor sells to a financier by “defaulting” the finances.. The secrets of the high prices of investment housing units
Economy 2024-06-09 | 05:34
3,128 views
Alsumaria News-Economy
Today, Sunday, the Parliamentary Investment Committee reviewed the reasons for the “dilemma” of high prices for investment housing units, which were supposedly created to solve the housing crisis in the country, while indicating that the
most prominent reason is that the investor did not obtain a contract with the Ministry of Finance and therefore sold the units to “financiers.” “
They can set selling prices without any restrictions.
The Vice Chairman of the Committee, Hussein Al-Sabari, said in an interview with Al-Sumaria News,
“There are several reasons behind the rise in the prices of investment housing units, especially in Baghdad,” noting that
“the rise in prices is first governed by supply and demand.
The smaller the supply and the greater the demand, the higher the prices.” He added,
"The other side of the rise in prices is that every investor who applies for a residential investment project provides economic feasibility by determining the construction price and the purchase price," noting that
"investment bodies, whether national or in the governorates, did not follow up and monitor the different numbers between reality and feasibility." "Economic, and therefore
we did not witness any punitive measures or warnings issued by investment authorities against violating companies." He explained that
the main reason behind the lack of monitoring and rising prices is that some investors circumvent this matter by selling housing units to banks or financing financial institutions, and
they in turn sell at higher prices and in the numbers they want, as
they are not a party to the contract related to economic feasibility. He points out that
“the investor’s justification for selling the units to a financier or bank is that he did not obtain a loan or contract with the Ministry of Finance and the State Real Estate Department,” noting that
“there is negligence in the Ministry of Finance regarding this issue, represented by the problem of not signing contracts, which... The investor pays to sell the housing units to banks, which finance the construction, acquire the housing units, and sell them at the prices they want.” He explained,
"If the pace of work in new cities is fast and starts offering reasonable prices, it is possible for the middle classes to obtain housing units.
However, with this climate and investment environment in this way, it is difficult for the middle class to obtain apartments, especially within the capital, Baghdad."
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Economy 2024-06-09 | 05:34
3,128 views
Alsumaria News-Economy
Today, Sunday, the Parliamentary Investment Committee reviewed the reasons for the “dilemma” of high prices for investment housing units, which were supposedly created to solve the housing crisis in the country, while indicating that the
most prominent reason is that the investor did not obtain a contract with the Ministry of Finance and therefore sold the units to “financiers.” “
They can set selling prices without any restrictions.
The Vice Chairman of the Committee, Hussein Al-Sabari, said in an interview with Al-Sumaria News,
“There are several reasons behind the rise in the prices of investment housing units, especially in Baghdad,” noting that
“the rise in prices is first governed by supply and demand.
The smaller the supply and the greater the demand, the higher the prices.” He added,
"The other side of the rise in prices is that every investor who applies for a residential investment project provides economic feasibility by determining the construction price and the purchase price," noting that
"investment bodies, whether national or in the governorates, did not follow up and monitor the different numbers between reality and feasibility." "Economic, and therefore
we did not witness any punitive measures or warnings issued by investment authorities against violating companies." He explained that
the main reason behind the lack of monitoring and rising prices is that some investors circumvent this matter by selling housing units to banks or financing financial institutions, and
they in turn sell at higher prices and in the numbers they want, as
they are not a party to the contract related to economic feasibility. He points out that
“the investor’s justification for selling the units to a financier or bank is that he did not obtain a loan or contract with the Ministry of Finance and the State Real Estate Department,” noting that
“there is negligence in the Ministry of Finance regarding this issue, represented by the problem of not signing contracts, which... The investor pays to sell the housing units to banks, which finance the construction, acquire the housing units, and sell them at the prices they want.” He explained,
"If the pace of work in new cities is fast and starts offering reasonable prices, it is possible for the middle classes to obtain housing units.
However, with this climate and investment environment in this way, it is difficult for the middle class to obtain apartments, especially within the capital, Baghdad."
[You must be registered and logged in to see this link.]
