Poll: Abdullah Al-Salih: real estate financing is one of the important pillars that help build or own a home, and the competent authorities have set regulations, controls and facilities for it.
Amlak Real Estate newspaper conducted a survey on the best ways to obtain real estate financing, what are the potential risks and how to avoid default.
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Khaled bin Saif: Spending in proportion to income
Khalid bin Saif, General Manager of the Jeddah Real Estate Forum, said that there are many advantages enjoyed by the beneficiary when obtaining real estate financing, including the ability to keep the cash flow that helps him to spend it in the way that suits him and suits the construction of his desired property, in addition to benefiting from the exemption from taxes on the first home, and obtaining financing gives the individual private ownership rights and realizing his desire to own a dream home in the way he sees fit for him.First of all, Khalid bin Saif, General Manager of the Jeddah Real Estate Forum, spoke about the advantages of obtaining a mortgage. Bin Saif said that the best way to obtain housing construction financing is to look for a lender that offers a low collection rate on the required amount, explaining that there are potential risks that the beneficiary may be exposed to; such as credit and interest rate risks, in addition to the lack of regularity in repayment, and Bin Saif warned against neglecting the obligation to pay the installments, so as not to lose his housing and the money he paid.
About the impact of financing on housing construction. On the impact of financing on the residential sector, Khalid bin Saif confirmed that real estate financing has a great impact in revitalizing the real estate market movement, pointing to its contribution to the recovery of development companies and the construction market, and bin Saif concluded his talk to Amlak by noting the decline in activity partly due to the banks raising interest rates.
Bin Saif concluded his talk "to Amlak" by observing the decline in activity partly due to the raising of interest rates by banks.
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Abdulmajeed Altalhi: Applying through financial institutions
For his part, Abdulmajid Hussein Al-Talhi, General Manager of Maskan Muthooq Real Estate, stressed the importance of the beneficiary of real estate financing to know the benefits of entitlement to support from Sakani to obtain the first home, pointing out that there are five support programs for beneficiaries, and touches on the fact that the "Wafi" off-plan sale program features the support of the lowest financing cost ratio, as announced at Cityscape from some banks.
Abdulmajid Hussein Al-Talhi <According to Al Talhi, the best way to obtain financing to build a house is to apply through the financing agencies and choose the self-build support program, and the financing will be in the form of payments according to the stages of construction: “There is also a non-refundable subsidy up to 150,000 riyals depending on income.”
Al-Talhi identified the main risks of financing, where he summarized them in the high value of financing, which exceeds the ability of the beneficiary, as well as high obligations that are not commensurate with the level of income, and the high cost of financing, in addition to non-compliance with the stages and payment requirements in self-building.
Talhi stressed the importance of financing in the form of payments according to the stages of construction. Al-Talhi stressed that housing is a need and it is necessary to obtain a product that is sufficient for the family. There are programs provided by the government that are easy and for all categories that must be taken advantage of, and warned of the risk of default in real estate financing, and advised to avoid the risk of default by adjusting deductions and obligations to not exceed 60 percent of income.
Talhi stressed that housing is a need and it is necessary to obtain a product that is sufficient for the family.
At the end of his talk to Amlak, Abdulmajeed Al-Talhi said that the real estate finance sector has a major role in the market; it is the main driver of the residential sector in the Kingdom; it witnessed record numbers in the volume of financing in previous years, which led to record highs in the sector, but currently with the increase in the cost of financing, there is a decline in the volume of real estate financing and also a decline in prices and many competitive offers and some went to the pattern of leasing instead of selling real estate products.
With the increase in the cost of financing, there is a decline in the volume of real estate financing and also a decline in prices and the abundance of competitive offers.
