XN000022-1977-10-10 — Page 2

MONDAY, OCTOBER 10, 1977

GOOD PROGRESS ON HOME OWNERSHIP SCHEME

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GOOD PROGRESS HAS BEEN MADE ON TWO FRONTS ON THE GOVERNMENT'S HOME OWNERSHIP SCHEME.

THE GOVERNMENT WORKING PARTY ON HOME OWNERSHIP HAS COMPLETED MUCH OF ITS WORK AND IRONED OUT MANY PROBLEMS.

THE SCHEME HAS BEEN GIVEN SUPPORT OF HONG KONG'S FINANCIAL COMMUNITY, AND LEADING BANKS AND FINANCIAL INSTITUTIONS, BACKED BY A GOVERNMENT PARTIAL GUARANTEE AGAINST DEFAULT, WILL OFFER SPECIAL MORTGAGE AT INTEREST RATES BETWEEN 7-1/2 PER CENT AND 9 PER CENT PER ANNUM FOR A MAXIMUM PERIOD OF 15 YEARS WITH A MINIMUM DOWN PAYMENT OF 10 PER CENT OF THE PURCHASE PRICE.

THE GOVERNMENT WILL OFFER A NON-PROF IT-MAKING CONVEYANCING SERVICE ALTHOUGH CERTAIN STATUTORY FEES MUST REMAIN THE SAME AS FOR ANY FLAT PURCHASE.

THE COST OF CONVEYANCING WILL VARY ACCORDING TO THE VALUE OF THE FLAT BUT FOR A FLAT WITH A MARKET VALUE OF $100,000 COULD BE ABOUT $520 IF A MORTGAGE IS INVOLVED.

FOR FLATS COSTING LESS THAN $100,000 THE AMOUNT WOULD BE SLIGHTLY LESS BUT WHERE THE PRICE ROSE OVER $100,000 A HIGHER COST OF CONVEYANCING WOULD APPLY.

THIS SPECIAL CONVEYANCING FACILITY WILL BE PROVIDED BY THE REGISTRAR GENERAL'S DEPARTMENT AS ANOTHER GOVERNMENT CONTRIBUTION TO THE SCHEME.

PLANS ARE NOW GOING AHEAD TO SET UP AN INFORMATION AND DISPLAY SECTION AT OF MAN ESTATE EARLY NEXT YEAR. THERE PROSPECTIVE BUYERS WILL BE ABLE TO SEE VARIOUS MODELS, PLANS AND DIAGRAMS OF THE SIX ESTATES IN THE FIRST STAGE OF THE SCHEME.

DETAILS OF THE MEDTHOD OF APPLICATION ARE STILL BEING WORKED OUT BUT IT HAS ALREADY BEEN FIRMLY DECIDED THAT APPLICATIONS WILL BE RECEIVED ONLY BY POST OVER A PERIOD OF SEVERAL WEEKS AND THAT PRIORITY WILL BE BY BALLOT AND NOT IN THE ORDER IN WHICH APPLICATIONS ARE RECEIVED, ALL WILL BE TREATED EQUALLY IN THE BALLOT TO DECIDE WHICH APPLICANTS WILL BE OFFERED FLATS.

THIS METHOD OF TAKING APPLICATIONS BY MAIL OVER A PERIOD OF SEVERAL WEEKS WILL MAKE IT UNNECESSARY FOR APPLICANTS TO FORM QUEUES IN WHICH THEY WOULD WAIT FOR CONSIDERABLE PERIODS TO LODGE APPLICATIONS.

MEANWHILE, ON THE GROUND, THE HOUSING AUTHORITY IS GETTING AHEAD WITH THE SCHEME AS THE GOVERNMENT'S AGENT, AND WORK ON THE FIRST SIX HOME OWNERSHIP SCHEME PROJECTS IS ALREADY AHEAD OF THE ORIGINAL SCHEDULE.

/THIS MEANS