August 19, 2016

Home ownership must be more affordable

With the opening of markets for foreign investment, property prices in Myanmar have risen sharply in recent times. Property prices in Yangon are said to be on a par with cities such as New York. But whilst property prices have risen to an international rank, average incomes of Myanmar’s middle class has not increased anywhere near as much. Rising property prices are making peoples’ lives difficult and it prevents many from enjoying the economic growth spurred by the increase in foreign investment.
For low income families in cities, buying a house has become almost impossible and most are now opting to rent instead. However, rents are also on the rise and families are spending large chunks of their incomes on rent, which makes saving up enough to buy one incredibly tough. The problem will only get worse if steps aren’t taken to the remedy the situation – and it will hinder the economic growth of the country in the long run.Therefore, affordable housing projects or low-rent houses should be more widespread.
Another vital component of making home ownership more affordable is to provide mortgages.  This will help many families of middle class to have their own houses and the country will benefit greatly from inclusive economic growth.


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