Equity sharing in the private sector

The Housing Authority last September issued 259 apartments in its second issue of Shared Ownership Scheme. The scheme, which has introduced more people to home ownership, has proved popular, since we have received 1,000 applications.

Through this scheme applicants are given the opportunity to purchase 1/3 or 2/3 of the residence offered for sale at a subsidised price. Thus beneficiaries will only need to take a bank loan for the amount covering the portion of the property being purchased.

The Housing Authority now intends to extend this shared ownership concept in the private sector and therefore it is launching a new scheme on Wednesday aimed to assist first-time buyers to purchase their residence from the private sector. Lm2 million from its budget for this year have been allocated to finance this scheme.

The Housing Authority finances up to a maximum of Lm7,000 on the purchase of residences in shell form, and up to Lm10,000 for completed dwellings. Thus the authority will become a shared owner in the property purchased.

Applications for the purchase of property the value of which does not exceed Lm50,000 will be given preference and processed first. Beneficiaries of this scheme will not be obliged to purchase the Housing Authority's share in their residence before the lapse of ten years from date of purchase.

After this period the Housing Authority will gather all relevant information to assess whether the beneficiary is in a position to pay back or take an additional loan to become the full owner of the residence.

The scheme will be open to married and engaged couples, single people over 30, single parents with children, separated persons and disabled persons. Applicants should not possess more than Lm15,000 in assets.

The yearly income of single persons is not to exceed Lm10,000 and that of couples not over Lm12,000. When assessing the yearly income of a couple the higher income of one party is taken in full and only a third of the yearly income of the other party is taken into account.

More information may be obtained after Wednesday from the Government Gazette, APS Bank, BoV and HSBC banks and from the Schemes Section of the Housing Authority on tel: 2122-7675, 2122-7679, 2124-8736.