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The End Of Housing Problem Now

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"The End of Housing Problem Now"

in the country

The most strong civilized project in Egypt( as example) for this century (Economically – Socially – Security)

By Engineer / Nabil Mohysin

The housing problem in Egypt is an imaginary problem in Egypt due to availability of building elements but there are some reasons for its current existing as a phenomenon. This problem is the hidden reason for all problems of Egypt. The statistics indicate that increment in the number of houses is more than the families. Then where is the problem? It is the cry of needed people who are looking for shelter and a song chanted by for his interest. The proof is that all the statistics affirmed that the number of housing units always bigger than the number of families. In 1986 the number of empty units was 1.8 millions units and now it is 3 millions. While the annual need is one quarter of million units, i.e. we have units enough for 12 incoming years. According to statistics, the number of marriage contracts is 525000 marriage contracts annually, i.e. we have our need for housing for 6 incoming years. This means that the problem of housing is due to non-utilizing the units and not due to their shortage.

Not only the developed countries moaning form the housing problem, but the developed world also. All global regimes failed to solve it. In capitalism countries, the housing is considered as a commodity, where supply and demand is its measure. This led to severe in the prices of units. In socialism countries, housing is considered a service to be offered by the State to its citizens and also failed due to financial difficulty. Accordingly, I submit this work sheet under certain concepts, that man kind is the successor of Allah in the earth and any thing has been serviceable by Allah shall be disposed by Man as he desires putting into consideration that the community has quota in what he owns without infringement of the freedom of the owner towards his property. This means that housing is a necessity which became out of consideration if available without determination of property or rent. Any excess of the necessity to be subject for almsgiving or tax to be paid by the owner in case of no utilization by sell or rent.

Limitation of housing problem in the rental relation between the owner and the lessee is keeping away the problem from its roots. Same as chewing gum, moving the mouth and stomach but not benefiting the body. The reality of the housing problem is attributed to several factors. The most important one is changing of housing style from depending on local raw materials and manual tools when building to a style of building using reinforced concrete and modern equipment of high cost which represented huge financial burden to those who desire of building. No country in the world is capable to fulfill the housing need of its citizen. Housing is the humiliation of Governments. Whenever the problem takes place, the Governments will coercively obey any conditions to be dictated on them or scarify some development plans in order to provide the housing. Few of us who has the financial ability of building due to changing of building style.

Due to this, the work sheet is depends on in important matters. The most important of them are given below:-

Establishment of a fund (far from the State’s budget) its main duty is to give loans without interests for those who desire to build. Its tributaries to be outside of Government funds and not to be linked to State’s budget.

Set up of a permanent and fair relation between the owner and the lessee.

Gradual and smooth shifting of the current housing conditions to the suggested position.

1- Establishment of a housing fund its tributaries as below:-

Tax of non occupation for the empty units (The owner of the real-estate is entitled for only one unit to be exempted from the tax and the tax to be taking only for the remaining units n the same real-estate in case of no renting or selling of them).

And the tax of minimum limit for electricity and water for all units (a tax to be set up for the minimum limit of consuming the electricity and water according to the area of the unit in form of sections. They are token values, e.g. the minimum consumption limit of a unit of 100 m2 area to be LE 6 to be paid by the occupier of the unit either an owner or lessee or whatever completing the actual consumption in case of consuming water and electricity at value less than LE and to be exempted if his consumption is LE 6 or more).

Tax on non-utilized lands.

Deposit which to be paid by the lessee to the housing fund to be refunded to the lessee at the end of the rental relation (an amount to be paid by the lessee to the owner and to be kept in the housing fund so that to be refunded to the owner at the end of contracting in order to help the owner to prepare the house again for utilization as a house) for new contracts only.

One third of the profits of the commercial centers that to be constructed in these different districts (the country to be divided into districts, at the center of every district shall be a service, social and commercial center to be managed by the inhabitants of the district, its profits to be distributed equally among the housing fund, services for the district and profits for the people of the district).

Rent value of the houses that to be rented in the cities by the city council (any one reserving a unit in the new cities shall be entitled to rent his unit so that the value of rent to be given to the housing fund and demanding of the one who reserves a unit by the monthly bank installment to be stopped and the remaining of unit debt to be frozen until evacuation of the unit).

Rent value of buildings that their owners cede them after their compensation by lands in the new cities and granting them loans (the property of buildings shall be shifted to the State after the cession of their owners).

The individual may build through loan from the housing fund without interests and settlement to be done in reasonable monthly installments – or through the participation of the lessee (this to be registered in the real-estate registration) – or contracting with contracting company or purchase building material by virtue of guarantee of the suggested housing fund. Therefore, that as aimed no one shall build his house by the origin of his money (any lessee shall be entitled to buy any national long-term commodity by virtue of guarantee of the housing fund).

The old housing low is correct in terms of religion and law but it is not beneficial as unlimited period relation and increment of rents in it is new injustice for the lessees due to many reasons. It is necessary to amend the rent relationship so that to include non-immediate increment of the rent and to be increased within four stages to reach a fair rent value and because the State and lessees have rights to shift from the status of similar to status of price dependence.

The first paragraph of the new law (No. 4 for 1996) is religiously and legally correct, but the increment upon renewal is null and usury and making the lessee under the mercy of the owner. The suggested solution is to link the rent value to the average value of the weight of some commodities under circulation (same as Lesser Bairam Alms which evaluated by the value of weight of commodities and possible to be paid in cash) and the period of rent contract is linked to the requirements of the owner for purposes for purposes rather than renting to others (It is possible to rent the square meter by the value of the real-estate rental pound or by percentage of it or its folds upon the consent of the owner).

The general concept of the items of worksheet:-

1- Dividing the imaginary districts and give code number to each piece of land, house or unit indicating its location. The unit to be registered in the real-estate registry, name of the owner, name of the lessee (if any),…etc and establishment of data certificate for each unit, land or house.

- Dealing with units and lands to be same as dealing of Islam with gold and camels i.e. in case of increment more than what determined by Islam, then an alms or tax shall be due unless what under. In housing, for every owner of a real-estate a unit free from tax. Alms or tax must be paid for the other units in case of not taking action to be occupied or alienation of its ownership.

- The tax of minimum limit of electricity and water consumption to be imposed on the units by semi token evaluation according to defined areas. The owner or the lessee of the unit must pay the complementary part of the due value in case of consumption of less than the value and not to pay in case of higher value.

- The new lessees must pay a deposit to be kept in the housing fund so that to be refunded to the owner at the end of the rent relationship.

- An economical and social committee shall determine the fair rent of the square meter. By virtue of research and study, we can say tha4t the committee suggested the rent of one square meter by LE 2 for example, this to be compared with weight of some commodities such as sugar, rice and lentil then the value of the average of these weights to be the rent of one square meter always and to be named the real-estate rent pound. Ministry of Housing on first of January and first of July every year shall carryout evaluation of the real-estate rent pound. It is of a changing cash value according to the value of average weight of these commodities so that the monthly rent to be the result of multiplying the value of real-estate rent pound into the area of the unit. The rent period to be for 5 years and binding to the owner for a first period then to be renewed annually and automatically unless in two cases if the owner desired to sell the unit or one of the sons reached age of 21 years and wanted to get married.

- Old houses to under the influence of two rental relations so that the higher value to be for the favor of the owner. The first relation is the old relation between the owner and the lessee, and the second relation is the rental value from now and for incoming five years the rent is zero and after other five years to be one quarter of the similar unit of the same area and after other 5 years to be one half and after other 5 years to be three quarters and after other five years to the full value of the similar unit in terms of area.

- The owners of units in the new cities which under installments they are entitled to rent their units to any one they select provided that the rent value to be paid to the housing fund against his stopping to pay the remaining installments of the unit during the whole period of rent provided that the person who reserved the unit must pay quarter of the value of the unit as cash payment.

- Old lessees are entitled to swap the housing without the owner’s permission provided that each one of them to be a second lessee for the owners. The persons who reserved the units in the new cities are entitled to swap the units upon consent of the city council of the two cities.

- Establishment of economical, social and cultural societies to be managed by the inhabitants of the district provided that the profits to be distributed equally among the housing fund, service of the district and profits to the inhabitants of the district and later on in the old valley.

- Offered Suggestions

An owner of any real-estate in the old valley may cede his real-estate against a land of full facilities in the new cities and simple loan and rent of his house for ten years then the ownership to be shifted to the housing fund.

The old lessees may rent their units to any person desired by the lessee against the new rental value provided the relation between the first lessee and the owner to remain as given in the article (6) and this relation shall remain for 20 years then the relation between the first lessee and the owner to be finished.

The owner of real-estate in the old valley shall be given the permission to demolish his real-estate and rebuild it during the first 5 years only provided to re-housing the lessees and observation of roads organizations regardless if the land was monopoly house or not.

The role of the work sheet is big one not only in solving the problems of the country far from the budget of the Governorate, but also vanishing 40% of the problems of the country. It shifts the role of State from the role of providing to role of empowering and endeavors to rectify the real-estate investment because it is servicing local system, because the sovereignty of this sector is an economical and housing blight. Hence, the sheet is rising the slogan of “The village for its farmers” because infringement of agricultural lands is an economical massacre. The sheet repels many risks threatening the national security and causes traffic flux. This sheet is fully compatible with rules of Islamic Law and articles of the constitute and vanishing many of the problems of agriculture, industry and tourism. Also it creates a revolution in the domain of local authorities and vanishes many taboo matters and legal issues and creates unique postal system of no similar one in the world and totally gets rid of prices increment. It is the biggest civilization project that gets rid of economical waste. It deserves the study as it will infuse 200 milliards pounds with the arena of the national economy. We shall the only people and it will be the single one that making the owner and the lessee in need of each other. It will be the single one that return back the captured agricultural lands. The housing problem is the biggest project for a criminal product.

Please discuss it with the members of People’s council and state consultative council in your constituency.

This is the concept of the book (End of housing problem now). In case of inquiry for any thing about the work sheet, please contact me through the personal mobile 010 3656233 or the e-mail: nma642003@yahoo.co.uk

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