Many young professionals are losing hope in home ownership, despite the newest adjustments made to the loan limits at the National Housing Trust (NHT).
Recent checks by the Freedom Come Rain newspaper found several young families who have determined that they cannot purchase a house in the current economic climate and they are not in any position to apply for NHT loans.
Despite the challenges faced by young professionals, realtors are insisting that buying property in Jamaica is not far-fetched despite the current price range.
In a release earlier this year, the NHT announced that it would increase the individual loan limit for open market purchases to $9 million. Two co-applicants may access up to $17 million, and three co-applicants up to $23 million. For units sold at $14 million or less, a new special loan limit of $12 million would be available to single applicants.
Despite these loan limits coming into the range of the current average home pricing, some young professionals say that it is almost impossible to meet the qualifications, especially the requirement of one’s earnings allowing them to repay the loan, since the specific loan amount is determined by individual affordability. They attribute this difficulty to the various demands on their low salaries.
Others have cited more financial challenges that may arise before or after the acquisition of the home, such as legal fees, surveyor’s fees, stamp duty, registration fees, and the cost of furnishing the house.
Realtors say that a house can cost as low as $14 million and may cost as much as $50 million or over.
Despite these costs, some insist that it is not impossible to purchase a house.
Derek James, a realtor associated with CD Alexander Company Realty Limited, has offered an explanation for the issue of high prices, stating that the location of the purchase is very important in the pricing of the home.
“A similar house in say, Kingston would have a completely different price in, say, Clarendon. Both houses are the same accommodation, the same everything, but simply because one is in Kingston and the other is in Clarendon, the price varies, sometimes substantially.”
He further explained that in less corporate areas, the prices are less expensive.
“A two-bedroom, one-bathroom, let’s say on a 4,000-square-foot lot in Clarendon will set you anywhere between $18 to $35 million. A similar property in Kingston again, depending on where in Kingston, because you know you have various locations, [but] anywhere in uptown, gets you anywhere in the region of over $35 to $50 million. What I see in Kingston at the moment is that there is hardly any land, so there is a difficulty in finding a house.”
Marsha Wright, a realtor associate, has expressed that the issues of purchasing a house may be remedied by one’s mentality.
“When I decided to purchase my first home, I did not have the deposit or clearly know how it would happen at the time. I sought information and guidance on the process and explored options and created a road map that allowed me to achieve my goal of home ownership. This included supplementing my income at the time. This is still possible for others. Our mindset makes the difference in the achievement of our goals.”
Jacqueline Edwards, another realtor, echoes these thoughts, adding that land is also available for purchase; therefore, there are more possibilities available to buy land.
“I believe that for a lot of people in Jamaica, part of the challenge that they face is being educated and informed, having guidance, and using strategy. I think if you put all of those, like you see in my case, if you put all those things together, you’ll be able to purchase a property.”
She also outlined possible strategies for home acquisition.
“When you have a bank account and you start dealing with a bank and a financial institution, they will combine that, and at the end of the day, they may say, ‘Listen, you qualify for $12 million. You don’t have to say to yourself, I can’t get a home. You can get land. With that, NHT gives you money over that portion that benefits the land, and plus, you have some money that you would have gotten from financial inclusion. Plus, you’re going to start saving the minute you start earning,” she advised.
“When you go here and land it there, I’m sure you can get land for $4 million, $5 million, or $2 million. You can get one at $8 million. You can get land to buy. And every property starts, every house starts with land,” she insisted.
