Creating bankable house buyers overnight is risky
P Gunasegaram | 27 Sep 2019 00:30
In the forthcoming budget on Oct 11, we are already being promised schemes to make it easier for people to buy houses. It seems there are plenty of houses but not enough buyers - the classic mis- match between supply and demand.
And so, what is one of the steps that the government is taking? It is trying to conjure up some magic by making those people who are not bankable right now for home financing somehow or other become more bankable overnight with some kind of financing scheme.
If people can’t afford to buy a house, how can you make it easier for them to buy one via new financing schemes? You can have deferred payment schemes and you can have rear-ended higher payments but eventually, you must pay the cost of the house with interest. You simply cannot run away from that.
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