Strategies for housing finance for greater development in Kochi
When developing small housing units for the Economically Weaker Sections (EWS), consisting of serviced plots of 300 sq ft and 100 sq ft of concreted plinth area and a fully built toilet block with a water tap, the local body or a Development Authority or the Housing Board must adhere to strict quality standards. A plot of 300 sq ft at an average unsubsidized rate of Rs.40 per sq ft would cost around Rs.12,000, taking the cost of the final built unit to Rs.37,000, which will certainly be beyond the means of the EWS whose average annual income is around Rs.6000.
Hence the commercial exploitation of low cost building materials, components and alternative technologies for building construction should be made. Stabilized mud blocks developed by Indian Institute of Science, Bangalore, can be used and such innovations need to be commercialized to reduce the construction cost. Besides, land is to be made available at a subsidized price so as to be affordable to the EWS.
In recent times the landed Properties in Kochi are appreciating in value mostly due to the inflow of investments into this key destination. No other city in Kerala has witnessed so much appreciation in land and property values. The key city centers are already out of bounds for people with small and marginal incomes. The value of a cent of land in the city center is now affordable to only the business people and the leading entrepreneurs with income that exceeds more than one crore a year.
Even then the people with small and marginal incomes can afford to move on to the city centers by availing the housing finance options on offer. In the absence of proper financial management practices at home, it is better not to avail of such conveniences. Prompt repayment is the key to successfully repay and get out of a home loan option on time.