The relative importance of mortgage pricing determinants in mortgage affordability in Ghana

Purpose The purpose of this study is to explore the mortgage affordability problem in Ghana, an issue that has been associated inter alia with high mortgage rates, which results from the high cost of capital, an unstable macroeconomy and unfavourable borrowers’ characteristics. Concurrent improvements in both the macroeconomy and borrowers’ characteristics have rendered the identification of the most problematic mortgage pricing determinant difficult, consequently making the targeting of policy interventions problematic. Design/methodology/approach This research sought to resolve this aforementioned difficulty by providing empirical evidence on the relative importance of mortgage pricing determinants. A data set of mortgage rates of selected Ghanaian banking financial institutions from 2003 to 2013 was examined and analysed by applying Fisher’s model of interest rates and an ex post analysis of the standard regression coefficients. Findings The risk premium factor emerged as the most important determinant in Ghana compared with the inflation premium and the real risk-free rate, although all are statistically significant and strongly correlated with mortgage rates. Originality/value This study provides an insight on the relative importance of mortgage pricing determinates and subsequent macro-economic guidance to support policy interventions which could reduce mortgage rates/enhance mortgage affordability. The paper specifically aims to engender wider debate and provide guidance to the Ghanaian Government and/or private enterprises that seek to provide affordable mortgages. Further research is proposed which could explore ways of reducing mortgage rates as a means of engendering social equality and adopt innovative international best practice that has already been tried and tested in countries such as South Africa and the USA

Low-cost housing: A cost management model for process integration and evaluation

Effective cost management is a vital requisite for successful Low-cost housing projects (LHPs) management and delivery. Whilst several attempts have been made to develop appropriate structured models for cost management practice, many of these models are fragmented and do not capture a holistic representation of the system components or their interrelationships in LHP settings. Moreover, these models are predominantly descriptive by nature – only identifying the components of cost management and not how they can be implemented within LHP settings. This research adopts an explicit sequential mixed research design to develop a bespoke LHP cost management model for process integration and evaluation in Nigeria. This identifies the structures and interrelationships needed to conceptualise and implement cost management practice effectively. Research findings highlight eight important techniques. These include target costing, approximate estimating, site meetings, Earned Value Analysis, on-site resource control, cash flow analysis, cost reporting and cost aggregation. However, it also needs to be acknowledged that it is important also to have: a well-developed client brief; detailed project designs and accompanying specifications; effective project planning and supervision; and competent teams (client and contractor) to discharge responsibilities. The importance of early contractor involvement was also seen as a core lever for success throughout the pre-design, design, and construction stages of LHP. The resulting model standardises cost management practice to provide a systematic ‘blueprint’ beneficial to project managers, cost managers and project management teams in evaluating and managing CMS processes more effectively in LHP settings. It is expected that the project department in Housing agencies adopts this model as a requirement for cost management practice in LHPs in Nigeria

The terrain of urbanisation process and policy frameworks: A critical analysis of the Kampala experience

Kampala is urbanising in an unplanned manner, but without a clear picture of the underlying dynamics. The city is characterised by lack of proper zoning of economic activities and construction of physical infrastructure without regard to subsequent spatial quality and environmental conservation. Consequently, there are sharp differences in residential standards where expensive housing and luxury flats co-exist with shanty towns and informal settlements, with about 60% of the city’s population living in unplanned informal settlements and often faced with challenges of unemployment. The unprecedented increase in the urban population in Kampala and the prospects for further increases in the near future have economic and social implications concerning employment, housing, education and health, among others. Understanding the nature of the dynamics of the growth or decline of cities like Kampala helps planners to support the processes that lead to harmonious urban development and to deal with the negative consequences of urban growth. This paper reflects the urbanisation dynamics explaining Kampala’s urbanisation process with the view to analysing the implications for an alternative urban policy framework. It argues that the conditions that have allowed the situation to exist have serious policy implications which require the need for an integrated policy framework that can be used to effectively prevent or halt Kampala’s unplanned urbanisation while promoting planned urbanisation. Induced by the migration and lack of information, understanding urban dynamics is crucial to the development of urban policies that can effectively ensure that further urban changes occur in a systematic and satisfactory manner. The current urban process in developing countries like Uganda is associated with poverty, environmental degradation and population demands that outstrip service capacity

Solomon Islands topographic map series 2005, scale 1:150,000 /

Topographic map series of Solomon Islands showing transportation, foot tracks, water features, vegetations and buildings. Relief shown by hypsometric tints. Depths shown by bathymetric tints.; Includes location map and inset in some sheets.; "Revision date 10/01/07."; "Copyright Solomon Islands Government"