FRIDAY, MAY 30, 1980
INSTANT PAYMENT FOR INDUSTRIAL LAND
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PURCHASERS OF INDUSTRIAL SITES SOLD AFTER THE BEGINNING OF JANUARY NEXT YEAR WILL NO LONGER BE ABLE TO PAY THE PREMIUM BY INSTALMENTS.
ANNOUNCING THIS TODAY, A GOVERNMENT SPOKESMAN SAID THAT AT PRESENT, BUYERS OF INDUSTRIAL LAND WITH A VALUE OF MORE THAN $1 MILLION COULD PAY THE PREMIUM BY 10 ANNUAL INSTALMENTS AT FIVE PER CENT INTEREST.
FROM JULY 22 THIS YEAR THE DOWNPAYMENT WOULD BE INCREASED FROM 10 PER CENT TO 40 PER CENT OF THE SALE PRICE.
FROM JANUARY 1, 1981, THIS FACILITY WOULD BE WITHDRAWN, AND PURCHASERS WOULD HAVE TO PAY THE FULL PRICE OF THE LAND WITHIN ONE CALENDAR MONTH OF THE DATE OF TRANSACTION.
ALSO TO BE TERMINATED WITH EFFECT FROM JULY 1980 IS THE OPTION, AT PRESENT AVAILABLE FOR INDUSTRIAL LAND IN THE URBAN AREA, OF PAYMENT OF PREMIUM BY FOUR EQUAL INSTALMENTS WITHOUT INTEREST WITHIN TWO YEARS.
EXCEPT WHERE THE GOVERNMENT WAS ALREADY COMMITTED BY NEGOTIATIONS, INSTALMENTS WOULD, WITH IMMEDIATE EFFECT, NO LONGER BE ACCEPTED FOR MODIFICATION PRÉMIA IN RESPECT OF INDUSTRIAL LAND.
THE SPOKESMAN EXPLAINED: +INDUSTRIAL LAND IS NOWADAYS PURCHASED MAINLY BY REAL ESTATE DEVELOPERS FOR DEVELOPMENT INTO GENERAL MULTI-STOREY FACTORY BUILDINGS, RATHER THAN BY INDUSTRIAL ISTS WISHING TO BUILD PURPOSE-DESIGNED FACTORIES FOR THEIR OWN USE.
+ THE ORIGINAL INTENTION OF THE INSTALMENT SCHEME, INTRODUCED IN 1955 TO PROVIDE A FORM OF SPECIAL ASSISTANCE TO INDUSTRY, IS, THEREFORE, NO LONGER GENERALLY APPLICABLE. THERE IS, FURTHEMORE, NO EVIDENCE THAT PROPERTY DEVELOPERS ARE HAVING DIFFICULTIES IN OBTAINING FINANCE TO PURCHASE AND DEVELOP INDUSTRIAL LAND.
+ INDUSTRIAL ISTS NORMALLY EITHER PAY FOR THEIR PREMISES IN A LUMPSUM OR MAKE ARRANGEMENTS FOR PAYING INSTALMENTS THROUGH THE BANKING SYSTEM IN THE NORMAL WAY, AND THE ABOLITION OF THE INSTALMENT SYSTEM WOULD, THEREFORE, BE UNLIKELY TO AFFECT THEM.+
THE FACILITY FOR PAYMENT OF PREMIA BY INSTALMENTS FOR SALES AND MODIFICATIONS OF NON-INDUSTRIAL LAND FOR RESIDENTIAL OR COMMERCIAL/RESIDENTIAL PURPOSES WAS TERMINATED IN DECEMBER LAST YEAR.
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