SUNBIZ

‘Home Ownership Boosts Economy’

Home ownership contributes to the growth of any economy. How so? “Research indicates that in some countries the net worth of homeowners is as much as 45 times higher to
13 May 2017 10:34
‘Home Ownership Boosts Economy’

Home ownership contributes to the growth of any economy. How so?

“Research indicates that in some countries the net worth of homeowners is as much as 45 times higher to that of renters. So, homeownership actively supports wealth creation and accumulation,” Permanent Secretary for the Ministry of Local Government, Joshua Wycliffe said.

“Many first time home buyers do not consider owning a home as once in a lifetime event. People would like to constantly improve and progress with their lives.

“So after a few years, these first home owners would typically sell their first home and trade-up. Whatever be the case, homeowners do buy multiple homes during their lifetime. This process contributes to economic growth and remarkable job creation.”

Mr Wycliffe said with the sale of every home, the expenditures relating to legal facilitation, home renovation and or remodelling, new furniture, mortgage and paperwork, move-in or move-out, further spurred the construction of new homes.

And large chunks of these earnings eventually would be spent in the local economy (multiplier effect), he added.

Mr Wycliffe also said the reduction of the turnaround time for the processing of the first time home grant would require competent staff, systems and processes.

“The ministry established a new model that introduced a two-tier process management system. This also meant that we allotted exclusive resources to this process. The vetting and approving bodies met fortnightly.

“This resulted in us clawing back on the processing time in big way (from an average of 109 days down to 24 days) – once all documentation is submitted as per requirements (for decision making). We are further working with the various financial institutions and channel partners, assisting them to process quicker and more efficient.”

With the new turnaround time, the ministry would be able to process 1000 applications annually.

“But this would also depend upon our other channel partners feeding in the information and paperwork required within timeframes. The forum conducted earlier this week, was aimed at exactly achieving this.

“By engaging with the financial institutions, the ministry co-partnered with the processes and established ways and means of speeding up processes and work more efficiently.”

My Wycliffe said the timeframe for the grant would need to be driven by the public need for affordable housing. Further allocation will be decided by the Government.

Additionally, the Government has also subsidised residential subdivisions like Matavolivoli in Nadi through grants. The Government provided a grant of nearly $5m towards the sub divisional infrastructure – thereby making residential lots even more affordable.



Five Squares 4th Birthday


Get updates from the Fiji Sun, handpicked and delivered to your inbox.


By entering your email address you're giving us permission to send you news and offers. You can opt-out at any time.


Tower Insurance
FNPF App
Covid 19 - SPC
Fiji Sun Instagram
Subscribe-to-Newspaper