Debate: Is mortgage refinancing a bad idea?

Old toilets, new London - prices push cafes underground AFP NewsBy Ouerdya Ait Abdelmalek | AFP News – Wed, Oct 8, 2014.. . . .Related Content. ..A counter with the original urinals in "Attendant", a former public toilet now converted into a coffee shop and sandwich bar in central London. .The original urinals and cisterns have been converted into a seating area at the "Attendant" coffee shop and sandwich bar in central London. ."Attendant" is a former Victorian public toilet that has been converted into a coffee shop and sandwich bar in central London."The Convenience" is a former 1940s public toilet converted into a coffee shop and restaurant in Hackney, east London. Shorter waiting time for trains: LTA . Total lunar eclipse returns to Singapore’s sky on 8 October Total lunar eclipse returns to Singapore’s sky on 8 October Total lunar eclipse returns to Singapore’s sky on 8 October Facilitators of controversial relationship workshop were "ineffective": HCI principal With spiralling land prices turning even the darkest corners of London into potential goldmines, the city's forgotten spaces, including 19th-century public toilets, are blossoming into restaurants, cafes and boutiques. Many Victorian urinals remained abandoned for decades after World War II, but encouraged by local officials keen for fresh sources of income, the conversion wave is gathering pace. Many embrace their lavatorial heritage, like "The Convenience" -- a coffee shop that opened in the trendy district of Hackney in 2013, "WC" -- a wine bar in Clapham in south London -- and "ArtsLav" -- a performing arts space in Kennington. Others have chosen less literal names like "The Attendant" and the "Cellar Door" cabaret, both in the city centre. The trend has "picked up recently", according to Rachel Erickson, whose job organising guided tours of the city's working public toilets has earned her the nickname "Lady Loo". Jayke Mangion, 34, who opened "WC" in July, explained that "the government has been pushing the councils to use all empty places to generate revenues". Whether it be derelict toilets or abandoned underground stations, many more unusual sites are coming on the market, offering far more affordable rents than traditional addresses. - Days of scrubbing - Housed in a Victorian subterranean toilet block attached to Clapham Common underground station, "WC" has kept its original mosaic floor and tiled walls and the woodwork has been fashioned into tables and intimate alcoves. The old urinals are no longer in use but have stayed on as decor in the new bathrooms. Katie Harris, owner of "The Convenience" -- a restaurant by day and bar by night -- has instead made the porcelain pots a feature, supporting the wooden bar. The 30-year-old explained that she did not want "deny it was a toilet" but also was wary of making the space "too toilety". Yellowed urinals were taken out as they were considered "too peey" for customers, while the others were scrubbed for days to reveal a gleaming white porcelain. As well as the attractive rents, Harris, who is also a designer, said that she chose the space for the professional challenge it posed, and because of its simple 1940s architecture. "It is important to preserve these places, to make them places for the community," she said. Ryan De Oliveira, who runs "The Attendant" cafe, added: "To give a new life to something previously unused, it pushes the boundaries." The former financier also embraced his building's history, turning the 1890s toilet cisterns into flower pots and keeping the urinals in place. "The coffee is very good, there's a nice atmosphere and it's an original location," said one client, Laurent. At "WC", Philip, 35, suggested that the use of original fittings "adds to the charm of the place". "It gives it a cosy feel and it doesn’t smell anymore, so it's all good. I like it," he said. Wine bar owner Mangion said that despite the expensive refurbishments, there is still plenty of down-to-earth toilet humour with customers. ===================== By Kazim Alam Published: October 5, 2014 Govt expects company will generate long-term liquidity for banks, DFIs. CREATIVE COMMONS KARACHI: Following in the footsteps of advanced economies, Pakistan is soon going to establish its first mortgage refinance company that – the government believes – will form the bedrock of a vibrant secondary mortgage market. Notwithstanding the myriad inadequacies of the country’s housing market, policymakers seem poised to set up the mortgage refinance company with a paid-up capital of Rs6 billion and a broad shareholding of the government, commercial banks, development finance institutions (DFIs) and multilaterals. The government expects the company will generate long-term liquidity for banks and DFIs. Like its counterparts in advanced economies, the proposed company will purchase housing loans from financial institutions engaged in loan origination – like House Building Finance Company (HBFC) – and package the same for their onward sale to long-term investors. In theory, this will free up liquidity for mortgage originators and enable them to increase their housing portfolio in a short period of time. As a consequence, housing finance will become more accessible in the economy, as mortgage originators will not face liquidity shortages despite a rapid increase in their housing portfolios. The general response to the proposed mortgage refinance company has been largely positive. From the Association of Builders and Developers of Pakistan (ABAD) to the banks and DFIs with footprints in the housing finance market, nearly all stakeholders have hailed the decision to establish the mortgage refinance company. Speaking to The Express Tribune, HBFC Managing Director Pervez Said said liquidity shortage is one of the key constraints that the country’s biggest housing finance bank is currently faced with. “Mortgage refinancing is the need of the hour. We welcome the government’s decision to set up the mortgage refinance company,” he said. However, some economists have raised concerns about mortgage refinancing in Pakistan. “It is a donor-sponsored, bad idea. International Finance Corporation (IFC) is retailing it everywhere,” Planning Commission’s former deputy chairman Dr Nadeemul Haque said in an email to The Express Tribune. “I had killed it in the Planning Commission. Why can donors not take no for an answer?” he said while referring to the country’s principal public policy development institution where he served as deputy chairman between 2010 and 2013. Haque says the IFC, which is part of the World Bank Group, took up the issue with the new government in 2013 and finally got it approved. He disagrees with Said’s assessment that liquidity is a key constraint when it comes to popularising housing finance in Pakistan. “Liquidity is not an issue in the housing market,” he said. Noting that supply is the real impediment, Haque says it cannot be removed without addressing the land zoning issues first. Similarly, he insists that housing demand will remain subdued until reforms in the bureaucracy take place. “Financial engineering will only magnify risks,” he said. Referring to the global crisis of 2008, which was primarily mortgage-based, Haque wonders if it should be encouraged in Pakistan, given that the country is still in an early stage of development. “Mark my words. This company will only create bad debts, and will have to be bailed out in five to 10 years,” Haque said, adding that banks love passing on their risks to taxpayers. The writer is a staff correspondent. Published in The Express Tribune, October 6th, 2014. Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.