Housing and You .. Remigrant Scheme, Expo and $15M mortgage limit

By Leonard Gildarie, July 7, 2013, By KNews, Filed Under New, Source

The fourth International Building Expo is well underway and expected to end today, but it is my sincere hope that it will be extended one more day. It was a massive crowd Friday night and I was forced to park in the actual stadium area itself. It is likely that the crowds would grow even more in the remaining two days.

Like before, I loved what I saw. But before we delve into the actual event and some of what it had to offer, we have to talk a little about one of the many questions about the Housing Ministry’s remigrant programme.

Similar to the low-cost core homes and the ‘turn-key’ project in which locals can purchase a completed structure along with the land, the remigrant scheme at Providence was another idea geared to attract persons who are returning home and who have already come back.

Scores of persons at the National Stadium on Friday night waiting to collect their transports and to apply for mortgage financing in the Housing Ministry’s tent.

Over the past weeks, many of our overseas-based readers have been emailing us, asking about the requirements.

According to Andre Ally, an official at the Housing Ministry, who is close to the programme, over 500 house lots have been earmarked at Providence for this. With the lots ranging from 6,000 to 9,000 square feet, the immediate targets are persons who have returned and who own no homes. The lots are selling between $4.5M to $7M (US$22,000-US$35,000).

Currently, while the Ministry is taking applications, the focus is on persons who have already returned home. I would bet that programme will have to be expanded as more and more Guyanese return home.

The bottom line is that applications are being accepted currently as we speak.

On Friday at the Expo, Guyana Power and Light Inc. (GPL) announced that it has gone online, a fact that the company hopes will reduce its long lines. In addition to being able to access your account and check what you owe, it will also address issues of disconnection; how to apply for a new service and change of tenancy; the rates and tariffs and how to file a claim.

It will also offer information on locations of offices accepting payments; a section to report theft; online inquiry; details on how to apply for a prepaid meters and emergency numbers.

The whole idea, GPL staffers said at the Expo booth, is to reduce the long lines for basic billing and other inquiries.

I must say that I love the idea, but wish that La Parfaite Harmonie, where I live, had phone lines so I can have internet access. I will have to ask GT&T again.

There are over 100 booths with at the Building Expo. It was a funny sight in some cases. Courts, the furniture giant, was there. So was an 80-plus inch flat screen TV that boasts 3-D effects and the works. Never mind the $2.6M price tag. There was the wistful looks on the faces on the kids and even quite a few grownups at the thought of owning one.

I paid special attention to two types of booths in particular…the Housing Ministry’s and that of the financial institutions.

Several hundred persons called by the ministry waited for a few hours to receive their transports while another group, prequalified for the ‘turn-key’ homes, gladly joined the lines to the New Building Society table that started the process for the mortgage financing for these homes.

Over the three days, NBS said it will process 1,600 applications for mortgages, by no means a small number.

Across at the Republic Bank and Scotiabank booths, the lines were long also, with persons enquiring for new mortgages, a second mortgage and other financing.

At the booth of BK International, coloured bricks, made locally for paving, was a prominent feature.

So too was ‘Paul Do It Best.’ Paul McKenzie is a success story, I am told, who was passing before the start of the expo four years and saw the construction of the booths at Providence. He was barely managing to make ends meet. He asked for a space and with a few mouldings and medallions on a fence, he was on his way, becoming a regular fixture of the show and a success. He was forced to sit on Friday night because of a leg broken in a bike accident. His open booth was a popular one.

Not surprisingly on Friday night also were the model homes on display. On the northern entrance of the parking lot, where traditionally a private developer used to display a model of his home, the Ministry has taken the spot over and a $19M two-storey home, Florida-style. The crowd was pouring in and out.

Not far away, another two homes, one by Sun Villas, were also the focus of attention, as the curious checked out the designs, outside and inside.
There were the cement, paint companies, insurance firms and furniture suppliers on hand also with their deals.

Next week, we will focus a little on some of the products offered by the other businesses and there are many.

There is one other issue that I want to raise. I have been asked why the financial institutions have not raised the limit of low cost mortgage to $15M. It is a good question. For many, a mortgage ceiling of $15M would give them the home they want. The current $12M ceiling is cutting it too close.

What I was told is that while there has been an application to the Government to have the limit raised to $15M, it has not yet been approved. Obviously, I would want to believe that considerations for raising the limit would depend on a number of factors, including the impact on the economy. However, I will raise this issue with the Government in the coming days to find out the reason for the delay.

I am heading to Providence today. Hope the rains hold up and maybe I can have a barbecue leg or something at the Expo.

Next week, we will review the show and its impact. In the meantime, use the opportunity to visit the show, talk to the suppliers and financial institutions, and maybe use the opportunity to ask the Housing Ministry officials there the status of your application for a house lot or a ‘turn-key’ home. I do hope that some good deals are made.

In the meantime, enjoy the weekend and don’t forget to write us on any suggestions, comments you may have. You can reach us at gildarie@yahoo.com.