Dennise Williams, Staff Reporter
WEDNESDAY'S ANNOUNCEMENT by Prime Minister P.J. Patterson of the doubling of National Housing Trust (NHT) benefits to a maximum of $3 million per person has created a wave of euphoria across the country.
But realtors say 'Hold on!'
Buyers must first ask: What can I get for the money? Where will $3 million to $6 million take me?
Realtor Alton Thompson said, "Well, $3 million can only get you a house in Portmore or an older type one-bedroom apartment in the general Constant Spring Road area. For $6 million you can get a single-family house in the Pembroke Hall area, some parts of Molynes Road and maybe Vineyard Town. And maybe you might get an apartment in Constant Spring Gardens for $6 million."
NEWLY-BUILT HOMES
Mr. Thompson states that for individuals who want a newly-built home, "You can get a one bedroom on Red Hills Road for $5.5 million-$5.9 million. Also, you can get a brand new one-bedroom apartment for $6 million in the New Kingston area."
Judy Benjamin, sales manager at Jamaica National Real Estate says, "Right now for $3 million-$6 million you will be looking in Portmore, areas in the wider St. Catherine, areas around Washington Boulevard, Constant Spring Gardens. But this is taking into consideration that the NHT benefit is not all the money you have. The fact is that those areas are still costly, so the NHT benefit just makes things more affordable."
Realtor Valerie Levy of Valerie Levy and Associates drives home the point, "You are certainly not going to Norbrook or Smokey Vale. The homes that $3 million-$6 million will buy are in Portmore, Patrick City, Independence City and Vineyard Town."
And while some may scoff at these neighbourhoods, Mrs. Levy points out that, "These areas have infrastructure and dilapidated houses that developers could turn around into apartments or townhouses." However, she concedes that, "The rush to redevelop these properties is stopped by crime. And that must be addressed first."
Beyond the question of what the money will buy, the next hurdle is can you qualify?
Mr. Thompson adds, "What NHT contributors have to keep in mind is that although the limit is $3 million they have to qualify for it. It is not for any and anyone. And this is where some people might be disappointed.
MEETING STANDARDS
Said Mr. Levy: "The NHT is not giving away the $3 million, you have to pay for it. And you have to qualify for it, and how many people can qualify? Not only is it for first-time buyers; you have to be earning at least $17,000 per week. So you are looking at young professionals. This is not for very low income people."
This means that to qualify for $3 million one would have to earn at least $68,000 a month.
However, Ms. Benjamin sees this as a boon for the middle-income market. "We think that the middle-income bracket will find housing more affordable. We are still waiting on the details to see how people will qualify. We are hoping that developers will look at the middle market at a serious way because more money is available now," she said.
How much house can you buy?
Let's run the numbers. The straight monthly payment of principle and interest, not including
insurance costs or any other charges assessed, is estimated to work out in the following manner.
NATIONAL HOUSING TRUST BENEFITS
| Amount | Term | Interest Rate | Monthly Payment |
| $3 million | 25 years | 8% | $23,154.49 |
| $6 million | 25 years | 8% | $46,308.97 |
BUILDING SOCIETY (FIRST-TIME HOMEOWNER)
$3 million 25 years 14% $36,112.83
$6 million 25 years 14% $72,225.66
