The demand for accommodation is very high.
In the online meeting between the Government and localities on removing difficulties and promoting the implementation of social housing projects yesterday, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), made many proposals on the social housing development program as well as information and recommendations to support businesses and home buyers.
In the above program, HoREA also proposed to support landlords in developing construction to meet the housing and living needs of local people and workers.
HoREA Chairman said that landlords are making an important contribution to solving the problem of increasingly better quality accommodation for workers, laborers, and immigrants.
Therefore, it is proposed to add this group to enjoy preferential loan support policies when self-building or renovating and repairing rental houses suitable for each locality.
The majority of workers and residents working in Ho Chi Minh City do not have enough conditions to access commercial housing. This causes the demand for accommodation to increase.
“The Association recognizes that the demand for social housing is very large in urban areas, first of all in centrally-run cities and provinces with high industrialization rates, but it is necessary to conduct careful research to develop social housing types suitable to the needs of people in each locality, avoiding the situation of social housing being ‘unsold’ as has happened in some localities,” said Mr. Chau.
According to HoREA's discussion, the Ho Chi Minh City Labor Federation conducted a sociological survey and investigation. The results showed that about 60% of migrant workers only need to rent a room for about 1.5 million VND/month and can only afford to pay about 20% of their monthly income for rent. They only want to work for about 10-15 years and then return to their hometown.
While there is still a shortage of worker accommodation areas and state-owned or enterprise-invested dormitories, about 60,470 individuals and households have invested in building boarding houses with many rooms for rent or room-sharing houses for rent with a total of about 560,219 rooms.
Including 38,800 concentrated boarding houses with 357,246 rooms and 25,670 houses (apartments) for rent with 202,973 rooms, contributing to solving the need for renting rooms for more than 1.4 million workers, laborers, immigrants and also intellectuals and experts renting rooms.
A workers' dormitory.
Therefore, HoREA recommends that it is necessary to supplement the policy of "State housing support" for "landlords" in building, renovating and upgrading houses, in which it is proposed to consider reducing the "fixed tax" of personal income tax currently applied at 7%/revenue for landlords, which is quite high and not really reasonable.
Therefore, it is necessary to add more tax incentives to encourage businesses to invest in developing social housing for rent. The proposed personal income tax rate is 5% of revenue.
Reduced revenue, cheap rent if access to capital
According to some experts, not everyone has enough potential to buy commercial housing, while there is not much social housing at present, and the procedures take a long time. The immediate solution to the long-standing housing problem for workers in the city is the landlords.
If landlords are allowed to access loans, the State needs to have specific regulations for households that can borrow. For example, if they are eligible for preferential loans, they must prepare all necessary paperwork and procedures such as the business owner’s own capital, where to build, construction process, scale, cost calculation, etc. and have close supervision from the authorities.
In particular, business owners when leasing must commit to reducing prices and calculating appropriate low profits to have access to this source of capital.
Mr. Nguyen Hong Hai (residing in Tan Phu district, Ho Chi Minh city), currently running a boarding house in district 7, said: "I strongly support the proposal to allow boarding house owners to access loans and reduce interest rates. This will help boarding house owners like me develop more boarding houses to serve the living needs of people, workers, and students in the city."
“Of course, we understand that accessing the budget and low credit will be a difficult process. However, if the State pays attention and supports, landlords like us will make a commitment.
Specifically, we will propose a plan to build a boarding house, scale, construction costs, labor... based on the loan, we will calculate the principal and interest over how many years, from there calculate and commit to renting houses to people and workers at a moderate level, the boarding house owner will earn low profits.
This shows that when we receive support, we will definitely support the people and workers in difficulty," Mr. Hai shared.
The proposal to allow boarding house owners to access preferential loans for building boarding houses is also considered feasible. However, there should be strict regulations on borrowing, using loans and only qualified people can access these loans.
Also having more than 50 rooms for rent in Thu Duc City (Ho Chi Minh City), Mr. Phan Huu Dinh, 67 years old, said: “I have been in the boarding house business for more than 20 years now. The boarding house is built on my family's land and I borrow more from the bank to build and then rent it out. The costs related to operating a boarding house are quite expensive and the income is also low. The tenants are mainly workers in the area, so the profit is not high, but in fact the income is stable.”
“Reading the news, I learned that there is a proposal for business owners to access preferential loans like the social policy bank. If this is applied, it would be great. We really hope to access this source of capital to develop more boarding houses for people. Of course, we will also commit to building according to the correct procedures and reducing rental prices to better serve people's housing needs,” Mr. Dinh shared.
The Ministry of Construction is also drafting a Decree on the development and management of social housing, in which households and individuals are eligible for preferential loans.
The draft Decree clearly states that households and individuals investing in the construction, repair or renovation of houses for rent to beneficiaries of social housing policies are entitled to preferential loans according to regulations, with the loan interest rate term similar to that of social housing project investors.
Accordingly, the maximum loan amount is 80% of the total project investment, the minimum loan term is 15 years and not more than 20 years. The loan interest rate is applied according to the preferential rate of the Social Policy Bank or does not exceed 50% of the average loan interest rate of banks in the market during the same period.
In addition, the draft also provides a number of regulations on conditions for borrowing capital such as: Having a social housing development investment project that has been approved by a competent authority in accordance with the provisions of the law on investment; Having a land allocation decision or having land use rights in accordance with the provisions of the law on land and having completed compensation and site clearance; Having been granted a construction permit in cases where a construction permit must be granted in accordance with the provisions of the law on construction; Having a minimum capital level to participate in the project, loan plan according to the regulations of the lending credit institution; Providing loan guarantees, mortgages for loans in accordance with the provisions of the law...
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