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
