Many owners of HDC houses not paying loans
02/07/2007 The Star By Jack Wong

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

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

"Not many houses are repossessed. But if they continue to accumulate the arrears, they will end up losing their homes,'' he added in an interview with the HDC bulletin in its latest issue which was released here on Monday.

Johari said most house owners would resume servicing their loans when the corporation took legal actions against them.

"This is not a healthy culture.

"They should give priority to their financial commitments first before spending on other things, such as house renovations and buying cars, for the sake of their families,'' he said.

Johari said the increase in the wages of civil servants from this month would help many, particularly the low-income group and those with big families to meet some of their commitments.

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

"Do not increase financial commitments unncessarily through excessive use of credit cards or adding up your personal loans.''

Johari said the ministry and Sarawak Housing and the Real Estate Developers' Association officials were planning for a trip to China this month to look for cheaper, but quality buiilding 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 the ceiling prices of affordable houses in the light of escalating costs of building materials.