 JAMAICA MORTGAGE BANK
HOUSING DEVELOPMENT SEMINAR
To be Informed is to be
Armed with the Knowledge that Creates Success.
HOMEOWNERSHIP
Recognizing what Robert Montgomery said, “Home, the spot of
earth supremely blest, a dearer, sweeter spot than the rest”,
the Jamaica Mortgage Bank (JMB) is very passionate about its
role in facilitating home ownership. Home ownership is often
thought of as a dream come true and buying a
home is an important goal for many Jamaicans. Living in an
owner-occupied dwelling unit is central to the concept that most
Jamaicans have of a secure and successful life. Most Jamaicans
believe in purchasing a home as soon
as they can afford to do so. Home-ownership is often thought
of as a strengthening of the family bond enabling good
citizenship and providing persons with more control to exercise
greater authority over their living environment. It helps to
stabilize neighborhoods and creates important individual
incentives for maintaining private properties and public spaces.
The social and economic benefits attributed to home ownership
are well known. It is believed that there is a beneficial
relationship between home ownership and happiness. Home
ownership is seen as an indicator of status and success while
influencing the self-esteem and self- efficacy of the homeowner.
Homeownership not only gives more control to people over
their physical surroundings and tenure, but it lowers real
monthly payments over time, protects against unanticipated
changes in rental costs and helps in building wealth.
Homeownership provides a ready mechanism for families to borrow
money and receive credit to assist in home improvement,
education, health and the financial markets. Most of these
benefits are available to all homeowners regardless of their
economic status. Homeowners generally benefit from price
appreciation in their homes. This makes housing a good
investment hedge against inflation.
HOUSING DEVELOPMENT
Housing Developers, Government Regulatory Agencies, Home
Owners and Financial Institutions must all be aware that they
have a role to play if the desired goal of improving and
expanding the country’s housing stock is to be achieved.
ROLE/RESPONSIBILITY OF HOUSING
DEVELOPER
The Housing Developer is expected to deliver products and
services that are acceptable by pre-determined standards, and
meet the requirements of the purchasers.
The developer has to be aware that he is not merely
constructing houses, but helping to shape communities. Therefore
he needs to bring vision and foresight to his development
realizing that he also needs to take into account the
sociological behaviour traits of its occupants.
Finally the developer must give value for money.
ROLE/RESPONSIBILITY OF GOVERNMENT
REGULATORY AGENCIES
The Government regulatory agencies have the responsibility to
ensure that house purchasers are protected. They must also
ensure that developers deliver acceptable goods/services that
conform to pre-determined standards. Concomitantly, the agencies
are to ensure that House Purchasers conform or abide to
acceptable pre-determined conditions set out under contract.
ROLE/RESPONSIBILITY OF HOUSE
PURCHASERS
House Purchasers have the responsibility to ensure that they
do not enter into contracts to purchase a house until they are
aware of the conditions.
Purchasers have a responsibility to exercise care before they
commit to the purchase. They should make every effort to take
all the likely precautions to eliminate and or reduce their
exposure. Purchasers must honour their financial obligations.
ROLE/RESPONSIBILITY OF FINANCIAL
INSTITUTIONS
Financial Institutions have the responsibility to ensure that
housing developers whose units they finance are developers of
integrity. They must ensure that developers deliver value for
money and also that the developers are cognizant of their
responsibility to abide by, and conform with construction and
development standards of the Government Regulatory Agencies.
Financial Institutions have a responsibility to ensure that
their investments are reasonably secure and that units they
finance are safe collateral for the investment outlay.
PROBLEMS ENCOUNTERED IN THE HOUSING
SECTOR
Over the years a number of complaints have surfaced and
recurred against
all the stakeholders in the Housing Sector. Example of
frequent complaints are as follows:
Complaints Against Housing
Developers
-
Model units and delivered units are not constructed with
similar material e.g. model units partitions being concrete
and delivered units being other inferior substance, with no
differential in selling price.
-
Termite infested building sites not treated before
construction commences – as a consequence of this the
completed housing units may be affected by termite
infestation.
- Inadequate site drainage – units are flooded by back-up
water whenever it rains.
-
Improper roofing installation methods-continuous leaks
whenever it rains.
-
Siting of schemes in locations where no immediate demand
exists - thus holding cost of units are passed on whenever the
demand for the units mature.
-
Siting of schemes in locations where basic desired social
infrastructure is non-existent.
-
Failure to research and experiment with:
- Indigenous Materials
- Different Methods of Construction
- Different Methods of Housing Finance
Complaints against Government
Regulatory Agencies
-
Lengthy delays in delivery of goods/services, thereby
contributing to time and cost over-run on projects.
-
Failure to enforce agreed predetermined conditions e.g.
-
Developers being allowed to construct and market units
that fail to satisfy predetermined acceptable requirements.
-
House purchasers being allowed to illegally change use of
premises e.g. from private dwelling to commercial.
-
House purchasers being allowed to make illegal house
additions or initiating home improvements to the detriment of
the neighborhood.
-
Failure to ensure that required infrastructure is provided
prior to the construction of houses and failure to ensure that
infrastructure (when supplied) is maintained.
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