Mr US blogger and others,could you read and assess and if possible debate how property and land ownership could be used as collateral for mortgage financing in Tanzania and whether it is the right path to alleviate abject poverty.I wrote this article to establish other perspectives on development challenges.
The act, unit title act number 16 “The mortgage financing (special division provision )” act Number 17 of 2008 was enacted . Later this year,financial processes will start under the supervision of bank of Tanzania.
The act enables interested indigenous Tanzanians and others to acquire loans from banks and financial institutions for mortgage financing. This shows that we are entering or have entered into an era of property and credit markets.(credit cards?)
Could the property ownership be the answer to problems of a poor country like Tanzania? Are people really poor as they look? The problem here is not to have secured legal title to our homes and Land.
Without legal title to your home, you can not use tittle deeds as collateral to borrow money and if you can not borrow money then you can not raise capital you need to start up a business for example. Part of the problem for a poor country like Tanzania is bureaucratic nightmare to secure legal title to your property. It can take months sometimes years.scarcity of financial infrastructures,experience and skills and poor financial and enterpreneur knowledge among people eg APR,.etc
Most people use alternative ways for that purpose by lobbying the government and become freeholder ,some on leasehold(100 years?) where on lease term maturity ownership is attained. Find out more about our Land registry rules and policies.is it the time to overhaul the system?.Will Kenyans exploit advantages on this?
Now,to empasize in bringing finance life to our dead capital is key to providing the poor with prosperous future.However,there seem to be flaw on the theory that owning a property could ritually make it easier for people to borrow money. It is evidently seen that very few manage to get mortgages and seemed unfair at times.
Indeed,the reality is owning a property does not give you a financial security but that of your creditors/lenders. Real security comes from having regular stream of income example employment income,dividends,savings etc. So for this reason, it is probably not necessary for every entrepreneur in our country to take out mortgage on their homes.
Infact,property ownership may not be the key to wealth generation at all. People could borrow money with or without security. This led to a personification of an extraordinary new financial movement know as Microfinance.Have you heard of JK billions?these are somewhat concessional loans however,do they prepare them competatively?ie with commercial loans(30%APR from CRDB).
Nevertheless,Microfinance is regarded as economic magic bullet since one could assess transformation it brings to entrepreneurs of third world countries.
Most business and people could access loans provided by financial intermediaries although there are complaints on the credit approval systems,too long tedious process. The problem is differences in credit ratings and credit worthiness of people. The risk of non repayment(toxic debts?) of a loan among men is higher than women the study shows. No offence,sometimes microfinance is regarded to have female traits as lenders realise women promptness.
This is when most people say it is time to change a catch phrase that as safe as a house to as safe as housewives. Likewise, it could be a mistake to assume that microfinance as a magic bullet that just giving out loans will not necessarily consign poverty to a museum but betting everything on the house will not do that either.
All financial literacy may be rampant but some how people in the west were confined to a branch of economics which is Property market as they regarded as one way betting except that it was proven wrong. we saw and still see house prices fluctuating the world over, from London to New York to Tokyo.
Therefore, encouraging home ownership may well create political constituents for capitalism and may well distort capital market by persuading people to bet their houses. It is true that people need to borrow money let say to start up businesses,to finance their projects, buy expensive assets etc.it looks dangerous to lull them to stacking everything as far as risk free property is concerned. The key is to strike a balance between debt and income.
We were on the brink of financial meltdown which was started buy problems on housing market in the US. Someone could remember firms like Fannie Mae and Freddie Mac which eventually were recapitalised to avoid total property collapse.
Therefore, Tanzania on the verge of embarking into property market, should have every tool to avoid consequences .I know we are donor dependent country and the west(IMF) has significant influence and the goverment finds it hard to account to its people as their independence is subjective due to overdependency.
The act, unit title act number 16 “The mortgage financing (special division provision )” act Number 17 of 2008 was enacted . Later this year,financial processes will start under the supervision of bank of Tanzania.
The act enables interested indigenous Tanzanians and others to acquire loans from banks and financial institutions for mortgage financing. This shows that we are entering or have entered into an era of property and credit markets.(credit cards?)
Could the property ownership be the answer to problems of a poor country like Tanzania? Are people really poor as they look? The problem here is not to have secured legal title to our homes and Land.
Without legal title to your home, you can not use tittle deeds as collateral to borrow money and if you can not borrow money then you can not raise capital you need to start up a business for example. Part of the problem for a poor country like Tanzania is bureaucratic nightmare to secure legal title to your property. It can take months sometimes years.scarcity of financial infrastructures,experience and skills and poor financial and enterpreneur knowledge among people eg APR,.etc
Most people use alternative ways for that purpose by lobbying the government and become freeholder ,some on leasehold(100 years?) where on lease term maturity ownership is attained. Find out more about our Land registry rules and policies.is it the time to overhaul the system?.Will Kenyans exploit advantages on this?
Now,to empasize in bringing finance life to our dead capital is key to providing the poor with prosperous future.However,there seem to be flaw on the theory that owning a property could ritually make it easier for people to borrow money. It is evidently seen that very few manage to get mortgages and seemed unfair at times.
Indeed,the reality is owning a property does not give you a financial security but that of your creditors/lenders. Real security comes from having regular stream of income example employment income,dividends,savings etc. So for this reason, it is probably not necessary for every entrepreneur in our country to take out mortgage on their homes.
Infact,property ownership may not be the key to wealth generation at all. People could borrow money with or without security. This led to a personification of an extraordinary new financial movement know as Microfinance.Have you heard of JK billions?these are somewhat concessional loans however,do they prepare them competatively?ie with commercial loans(30%APR from CRDB).
Nevertheless,Microfinance is regarded as economic magic bullet since one could assess transformation it brings to entrepreneurs of third world countries.
Most business and people could access loans provided by financial intermediaries although there are complaints on the credit approval systems,too long tedious process. The problem is differences in credit ratings and credit worthiness of people. The risk of non repayment(toxic debts?) of a loan among men is higher than women the study shows. No offence,sometimes microfinance is regarded to have female traits as lenders realise women promptness.
This is when most people say it is time to change a catch phrase that as safe as a house to as safe as housewives. Likewise, it could be a mistake to assume that microfinance as a magic bullet that just giving out loans will not necessarily consign poverty to a museum but betting everything on the house will not do that either.
All financial literacy may be rampant but some how people in the west were confined to a branch of economics which is Property market as they regarded as one way betting except that it was proven wrong. we saw and still see house prices fluctuating the world over, from London to New York to Tokyo.
Therefore, encouraging home ownership may well create political constituents for capitalism and may well distort capital market by persuading people to bet their houses. It is true that people need to borrow money let say to start up businesses,to finance their projects, buy expensive assets etc.it looks dangerous to lull them to stacking everything as far as risk free property is concerned. The key is to strike a balance between debt and income.
We were on the brink of financial meltdown which was started buy problems on housing market in the US. Someone could remember firms like Fannie Mae and Freddie Mac which eventually were recapitalised to avoid total property collapse.
Therefore, Tanzania on the verge of embarking into property market, should have every tool to avoid consequences .I know we are donor dependent country and the west(IMF) has significant influence and the goverment finds it hard to account to its people as their independence is subjective due to overdependency.
It is unlikely Tanzania will be prone to any crisis on its own except when her microeconomics policies are not integral with the west.
Mdau(John) UK
daskim@hotmail.com
Mdau(John) UK
daskim@hotmail.com
Hi Mdau,
ReplyDeleteUNAJUA WEWE MUHESHIMIWA HUWA UNAPOINT SANA TATIZO LAKO HIVYO VI-ENGLISH VYAKO NDIO HUWA VINAZIKOSESHA MADA ZAKO FAIDA STAHIKI. NADHANI WEWE NISHAHIDI MZURI TU HATA SISI WENYE MASTERS HAPA BONGO BADO KUSOMA KI ENGLISH INATUWIA UVIVU SASA SIDHANI HAO UNAOWAKUSUDIA HUSUSAN KWENYE MADA MUHIMU KAMA HII AMBAYO LAND OWNERS WENGI NI WATANZANIA WENYE VIPATO VYA CHINI NA AMBAO SHULE KWAO NI KITENDAWILI, SIKWAMBII KI ENGLIESH NDIO KABISAA. MIMI SOMETIMES HUWA NASHINDWA KUKUELEWA SIJUI NI ULIMBUKENI ILI WATU WAKUJUE KUWA UNAKIJUA SANA KIINGEREZA AU LA. WEWE ANDIKA KWA KISWAHILI ILI MADA ZAKO ZIWE NI ZENYE MANUFAA.
MUDDY
TZ
mdau john, nadhani John Mashaka alizungumzia hili swala kwa undani zaidi hapo nyuma, kwa hiyo unaweza kuwasiliana naye kukupa mchango zaidikuhusu swala la real estate
ReplyDeleteTANZANIA MINING SECTOR TO REPLACE AGRICULTURE
ReplyDeleteTanzania is rich country in gold, and Hon: Zitto Kabwe has faught so hard to make it be richer, by stopping all bad contracts to keep away the Buzwagi, kiwira and Richmond, and my learning collogues Dr. US blogger has pointed a very serious point of taxes to be the main problem to make the country Rich. Famous Dr. US Blogger, and I see eye to eye because he is a very keen person and very kind human who loves his country because he invest and employees many thousand people who now have jobs in Tanzania. But our infamous brother from and messiah from wallstreet does not want to be proactive in active gold projects which has been the mother of all battles “UFISADI” this new change of good management of our mines can replace the agriculture for a more developed nation, and if our parliament can work together, then we can say YES WE CAN!
Mr. President, Honorable, Dr. Jakaya Mrisho Kikwete has fought ufisadi so hard, with Richmond, EPA and he borught the criminals to court for justice for the poor Tanzania, and we need to give him another years of good leadership to finish the job so that Tanzania gold can benefit our hospitals, university, primary school and loans to the farmer. Our beloved president, know that Kenya want our land which is rich in Gold, Germstones, diamond and tanzanite, and will benefit greedy neighbors who don’t know how hard we work. When we go to the election of 2010, we must be careful for those who see Gold as the benefit and future source of development of tanzania, and give the president another term, as me and Dr. Blogger and planning to support him
We can’t welcome the kenyans that because we Tanzania have children who will benefit from our land, and does not want the gold which controls the world economy falls in the hands of selfish people like the bad contracts of Richmond and Buzwagi. Our gold is means for only Tanzania, and can boost economy. Tanzania mines and naturals resources can change Tanzania reliance from Agriculture to mining and natural resources, and hope our esteemed parliaments can see and form news laws that will change our country to 80% in mining depended than agriculture to make the country a superpower in the region of EA, suprussing the Kenya, Rwanda and Burundi. And if we have good leaders, we will propsper, and not like John Mashaka suggested, that gold if finished and the country has remained only holes, that are empty. Me and Hon. Dr. US are ready to change this nation and need your support
maoni yote yanakaribishwa, kwani jamii ya bulogu ni huru
Joseph Hikalimba, josephikalimba@yahoo.com
well written piece of info.i have a narrow knowledge in economics but i believe the only kkey is to let bank lend money with affordable rates.Also i think the way IMF works wiht the rest of money monetary organs created no room for poor countries like tanzania to excel.I think also we nee a political independence so we could govern our own finances and economics.
ReplyDeletemmi niengineer and i do support your article.
US-blogger dont bring you crap dissing this argument.
hufai wew.
US Blogger)
ReplyDeletewewe mpambe wa mashaka John Mdau (UK) wala usiweke jina langu kwenye mada zenu mbovu. Wewe ni kada wa nabii yohanna. Wapambe wa mashaka, mnaona sasa watu walioedna shule. Mchumi mkuu dinia mzima, mambo yaliyotulia, Kiingereza kilichotulia.
Mashaka hana lolote, nimemshinda, yeye ni mwanasheria aliyepotea njia. Amelewa na Wall-street mnapomuita Mesiah na Nabii anapanda bichwa, hasa mkimuita Rais 2015. US-Ndio mkuu siku zote
Nyie wajinga mashabiki wa mashaka, mwambieni Nabii wenu aje kwenye debate apate mambo, ajionee mwenyewe, nimtimulie vumbi. Basi kama ana akili ajibu nimmwagie Dataazzzzzzzzzzzzzzzzzzz
DR. US Blogger
Alumni Oxford University
Economics Department
Jamani mi naunagana na ndugu wakwanza hapo juu....ENGLISH HIYO JAMANI....yaani mimi naacha hata kuelewa point zako naanza kusahihisha hizo SENTENCES....SENTENCE zingine za kiswahili unazigeuzwa kwa kiingereza zinakosa maana kabisa...TUMIA KISWAHILI NI LUGHA PIA!!!!!au tafuta MWALIMU WA KIINGEREZA ATAFURAHI KUKKUSAIDIA !!!! ESSAY HAINA HATA LADHA!!!!
ReplyDeletebora sasas mtunge vitabu vya uchumi lol!!!!
ReplyDeleteWewe unayelalamika juu ya lugha, tumeshasema sana hapa kwenye blog kama hujui lugha nyamaza tu. Kwanza hii ni challenge kwa wasiojua Kiengereza kujifunza sasa kwani watapitwa na mambo mengi.
ReplyDeleteKumbuka maisha iliyaende yanahitaji nyezo mbalimbali na mojawapo ni lugha(English)hivyo kama huna nyezo maisha yatakuwa magumu sana. Siku hizi hata house girl anatakiwa ajue English, kwa sababu hawezi kukaa na watoto ambao wanasoma English medium school. Watoto watakapo ongea maneno ya kiengereza anatakiwa aelewe.
Mambo ya mtoto kusema namtaka "MUM" house girl anampa maji hatuwezi sisi.
Hata kwenye EAST AFRICA COMMUNITY watanzania watapata taabu sana kwa sababu ya ufinyu wa kuelewa kiengereza.
Jifunzeni hii lugha badala ya kulalamika.
Ushauri wa bure huo.
Wako mdau MG
Hallow mr. muddy, nakuunga mkono sana kwa maoni yako hapo juu ya huyu ndugu yetu aliye toa maoni juu ya plan ya morgage na .....
ReplyDeletemaoni ni manzuri sana, sasa ili yafaidike na kila mwananchi wa TZ, angekuwa anaandika lugha yetu ya kiswahili ili kila mtu aelewe na kutoa mawazo manzuri sana.Unajuwa wa Tanzania ni watu wenye akili sana na mawazo yao ni manzuri sana, ikiwa watapata maoni kama hayo kwa lugha yao utakuta maoni yatakao jitokeza hapo ni kibao na yenye msingi mkubwa kabisa.Mimi hapa nina mater degree mbili, lakini nikienda nyumbani na bonga kiswahili tu saaaafi, mpaka wanasema huyu jamaa utadhani tuko naye hapahapa bwana na anasoma Marekani.Utakuta wanatoa maoni manzuri kweli juu ya maendeleo ya nchi yao.Pamoja na kuwa sasa hivi kweli kwajuhudi ya uongozi uliopo sasa, naukianzia na uliopita nimekuta kuna mabadiliko makubwa saaana juu ya mwamko wa elimu kwa miaka kumi tu iliyo pita tangu sasa wa tanzania wamelipuka kwelikweli juu ya kusoma. Wanasoma kweli kweli imekuwa ni kama kipindi cha baba yetu wa taifa mwalimu Nyerere wakati ule alipoazisha kusoma NGUMBALO hata kwa wazee bibi na wote ambao hawakufikia kusoma shule, lakini bado hata hivyo si wote ambao wanajiweza kuongea kiingereza kwa mtiririko fasaha lakini kiswahili ni wooote hata waliosoma na wasiosoma.Kwa hiyo naunga mkono bwana mudi kwamba tunapotoa maoni yahusuyo nchi yetu ni bora tutumie lugha yetu fasaha ili wananchi wote 40,000,000 TZ, wachangie hizo hoja kwani watakuwa wameelewa kwa lugha zao wenyewe.Pia nampongeza bwana Josephikalimba kwa mchango wake wa kusifu kiongozi wetu kikwete kwajuhudi anazozichukua za kupambana na wahujumu ambao ni ugonjwa mkuu unaolikabili taifa letu sasa hivi kwani haikuwa utamaduni wetu wakuiba iba pesa ya umma.Sisi tulioko Marekani tunaona juhudi zake hasa anapokuja huku majuu anajitahidi saaana kuonana na viongozi wa juu kuzungumzia maswala ya namna ya kutatua matatizo ya nchi yetu, hivyo tuungane naye kweli tumpe support ili kazi anayoendelea naye aitimize kwa miaka mitano mingine, hii si campaign bali ni maoni kwa upendo wa nchi yetu.
Ahsanteni waheshimiwa wote wa TZ.
nyie ona hikalimba anavyokanumba,sasa ile ndio nini.
ReplyDeletehuu ni uwanja wa johni mashaka, wengine wote wanaotapatapa inabidi wafyate mikia. ni yeye tu sisikiagi kiingishi shida, mada zake zinakubalike kwa wote bila tatizo lolote
ReplyDeletewewe ann wa 01:55 hujui nini unazungumza ni bora ukae kimya...maana kuzungumza kiingereza haikupi ushindi wa hoja na wala matatizo yako...huu sio uwanja wa ushindani...kama mtu ana uchungu au ana taka kumalizia uchungu wake, kama alivyosema mdau mmoja kwa sentence fupi tu...kuweni wahandishi wavitabu...mbona ni rahisi kwenu...au ndio mnawasiwasi wa "offsides" nyingi???
ReplyDelete