New housing development could include home loans
January 24 - 30, 2011
TWO local companies – a property developer and a bank – are teaming up to offer house buyers the chance to buy low-cost homes with a long-term loan. If it goes ahead, the scheme has the potential to make the dream of home ownership a reality for thousands.
Taw Win Construction expects to start selling the yet-to-be-built apartments in mid-February, to buyers who can get loans from Kanbawza Bank, said Taw Win chairman U Ko Ko Htway.
Construction is scheduled to begin by the end of this month in U Ba Han street, Thamine, Mayangone township, and to be completed within six months, with the deadline set for August. The site is a 3-acre compound set in a densely populated residential area. The complex will include three eight-storey buildings.
“We’ve been planning to implement a low-cost housing project for low-income earners on an instalment basis for years, but I couldn’t find a suitable location. Then I decided to use a plot originally intended to be a warehouse for my construction materials,” said U Ko Ko Htway.
The complex will include more than 1000 apartments, with a floor area of 652 square feet. Prices will range from K12.5 million to K15 million depending on the floor.
“We discussed with Kanbawza Bank to provide long term loans for buyers and we’ve agreed that buyers should pay an initial down-payment of 30 percent, with the bank lending 70pc,” he said.
That translates into a down-payment of about K3.8 million and a loan of K8.7 million.
“We’re still discussing with the bank the terms and interest rates that will be applied. We have to take into account government rules,” said U Ko Ko Htway.
The apartments were designed by Taw Win employees.
“In the second phase, we plan to find another plot to build more apartments like this in future,” he said.
The project area stands on an old lake and already has landscaping.