The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A LEADING Bahamian property developer said yesterday that while the government’s Mortgage Relief Plan does not “totally solve the problem” it was a “significant step forward”, telling Tribune Business that tackling the foreclosed homes issue would have a trickle down affect on new home construction.

“This is still a difficult market, no question about it. To really get new home construction going a lot has to happen. People buy houses when they have a high degree of confidence. You have to be working for a little while before you decide to go and buy a house. A lot of different things have to happen and sending a signal that 1,100 houses will go from foreclosure is a useful step but it’s just one step,” said Arawak Homes Chairman Franklyn Wilson. The government has committed roughly $10 million to its mortgage relief plan.

“The State Minister of Finance has indicated that the plan will affect upwards of 1,100 people. If that information is correct there is no doubt that is significant. Friends of mine in the banking industry tell me that they reckon that would be about 25 per cent of the total number of people who would be in foreclosure. I advised that the total number of people in foreclosure was about 4,400. To get rid of one in four would clearly be a significant step forward. It doesn’t totally solve the problem but it would be a significant step forward,” said Mr Wilson.

Mr Wilson added: “In terms of impact, if we could move 1,100 homes off the foreclosure list that just sends a very significant signal that the road to new home construction at a faster pace seems to be closer in sight. That really is the key to it from a developers point of view. We just have to get new home construction started and to get new home construction started we have to get these large numbers of houses out there.”

Mr Wilson said that Arawak Homes was working diligently to respond to the tough market and had introduced a new line of product. “The really significant thing they have done recently is they have introduced this new line of product to put people in a house for $215 per week. They call it the family line. The basic concept is to give people as much house as they possibly can afford. The architects have come up with some very creative designs. There is greater efficiencies, better use of corridor space, less wastage, everything is tighter so people can still get what they can afford,” said Mr Wilson.