Low-cost house owners not repaying loans
04/07/2007 The Star By JACK WONG

KUCHING: Owners of many low-cost houses built by the state-owned Housing Development Corporation (HDC) here have failed to service their loans.

State Housing Minister Datuk Abang Johari Tun Openg said although a lot of the buyers were in arrears, most of them were yet to lose their homes.

“Not many houses were repossessed. But if they continue to accumulate the arrears, they will end up losing their homes,” he said in an interview with the latest HDC Bulletin.

Johari said most house owners resumed servicing their loans when the corporation took legal action against them.

“This is not a healthy culture. They should give priority to their financial commitments before spending on other things such as house renovations and buying cars for their families,” he said.

Johari said the increase in wages of civil servants this month would help particularly the low-income group and those with big families.

He said, with more income, they should learn to save and invest wisely.

“Do not increase financial commitments unnecessarily through excessive use of credit cards or adding up personal loans.”

Johari said the ministry and Sarawak Housing and Real Estate Developers’ Association officials were planning a trip to China this month to look for cheaper but quality building materials.

He said there would be no need to increase the prices of affordable houses for the lower income group if the construction costs of houses could be maintained.

Developers have asked the Government to review ceiling prices of affordable houses in light of escalating costs of building materials