Tuesday, July 12, 2016

Expert: the end of MdM and the beginning of apartments plus irrelevant to developers – Onet.pl

On Tuesday the National Economy Bank stopped accepting applications in the “House for Youth” for 2017 years. As reported already earmarked 50 percent. limit the amount of funds allocated to the program in 2017, so by law institution is obliged to suspend accepting applications buyers. The remaining funds for 2,017 years will be released January 1, 2017 year. Still bank accepts applications for 2,018 years. In March of this year. BGK stopped accepting applications for 2016.

Interest in the program has risen sharply, while in September 2015. Entered into force of the amendment to the Act on MdM. It introduced, among others, the opportunity to purchase housing on the secondary market, increased subsidies for families or single parents, abolished the age limit of parents in families with many children. Eased conditions for obtaining credit. Another factor that contributed to the increasing popularity MdM is the January announcement of the government of Law and Justice of the completion of the program in accordance with the statutory provisions, ie on September 30, 2018.

In place of the rulers MdM proposed National Housing Programme. It is expected to consist of three pillars – the construction of affordable housing for rent, support social housing and individual savings accounts. The rent cheap flats would not exceed 20 zł per 1 sq. M (the price would be dependent on location), and in addition there is a possibility of renting with the access to the property (if the rent the tenant would have to pay extra 20 per cent.). Housing would be built on land that is brought to the National Housing Fund by private investors or state-owned companies, and that – according to the ruling – would allow for lower cost of their construction.

Expert Maciej Hill with portal Domiporta.pl assessed that both the end of MdM and the new program will not affect developers. As reported, it is estimated that more than 63 thousand. beneficiaries have already benefited from the program MdM, and over 40 thousand. still benefit from it. As explained, “MdM is relevant only for the part of developers, because realize their investments in cities, where the average price meter are comparable to the limits of the program.” He added that, in practice, this means that “most developers not only constructing buildings with a focus on program beneficiaries, and only single premises are tailored to the criteria MdM.”

Hill believes that the end of the program MdM in 2018 may flow only for sale cheapest apartments with offers from different developers, those that meet the criteria of the program. Asked by PAP, developer, J.W. Construction confirmed that most of the buyers of its offer does not benefit from government support. She recalled also that the activity of developers is not limited to the housing market.

Expert Domiporta.pl rating, that key project Apartment plus for the assessment of the risks of investment development, is who will benefit from the program. He pointed out that the apartment plus is targeted to low-income people, large families, that is, those that would not benefit from the offer development.

He added that “the emergence of a large volume of units lower than the average rental rates could weaken the commercial demand and lead to lower rents.” “However, to such a scenario, in which the program plus apartment have worked as a regulator of prices, has come true, at one time would have come on the market at the same time tens of thousands of homes,” – said Hill. “While all developers will feel any threat from the government program, it certainly will use aggressive sales promotion, which will be based on attractive financial instruments” – predicts expert.

on the other hand, according to the Polish Association of Developers (PZFD) new government program can influence the “temporary imbalance” of the housing market, but you should not “expect revolutionary changes.” “As a rule, we believe that the program plus apartment not adversely affect the development market” – said the Association in response to questions PAP. PZFD agrees Maciej slide that eventually the program will be dedicated to only part of the population with low incomes, who still could not afford to purchase a new apartment.

PZFD assessed that it is good that the State proposes an alternative for people without credit capacity, thus creating an entirely new group of buyers. “Poland suffers from a structural deficit of housing and construction of new premises, with a minimum standard, no doubt will bring measurable benefits. Repeatedly stressed that the housing needs of the Poles can not be met by only one segment,” – stressed the link.

In addition, the developers – according PZFD – may be interested in working with the state. Hill pointed out that as a knowledgeable and experienced companies, developers will have a better chance to participate in the program than large general construction. Similarly, J.W. Construction is assumed that if the amount of the performance will not be too low in relation to the real, could take up housing construction in the planned government program.

Representatives JW Construction believe that due to limitations in the implementation of the apartment plus, ie. The possession of land located mainly on the outskirts of large cities, and the ability to transfer ownership of dwellings only after several years, it will not be accounted for from the competition. In his opinion, investors prefer to invest in real estate with higher standard, which at the time of purchase will become their property.

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