A housing scheme is an organized plan for individuals or groups who cannot afford to make a one-time purchase. This process of acquiring property is often achieved through lending from the government, employers, housing corporations, professional associations and banks.
With the ever rising cost of real estate, many people cannot afford to buy houses through a one-time purchase. To help people own homes, national and local governments, associations, banks and real estate companies offer to reduce the burden by spreading payments over a long period of time.
For housing schemes run by associations, members follow shared ownership arrangements by buying a percentage of the total value of the property, then continue to pay rent on the remaining share. This ownership is for a renewable limited period of time.
Banks and other lenders also make it possible for individuals to own homes through mortgages. These are loans advanced to finance the purchase of a home and are often large sums of money repaid over extended periods of time. Potential homeowners must show proof of secure regular income.
Home equity loans are another type of housing scheme in which a homeowner takes a loan using the value of the home as collateral to finance major expenses such as home repairs, medical bills or college education.