Letter: More can be done
Published:Friday | June 10, 2011 | 12:00 AM
The Editor, Sir;
Regarding the article titled 'JMB raising capital to buy up mortgages', dated Friday, June 3, 2011: It's a progressive move to 'free up' funds currently tied up in the mortgage financing market.
More can be done, however, to invigorate the Jamaica real estate/housing industry.
The recent International Monetary Fund agreements could be a restricting factor here, as a rapidly overheated real estate development industry could create strains on the nation's balance of payments - a delicate situation, which would require close monitoring by Bank of Jamaica.
Without offsetting improvements in exports, an increased demand for importation of building materials/fixtures could create a strain on foreign exchange.
The nation needs an early resolution to the LNG obstacles.
Boosting the housing industry, is one of the mechanism to jump-start the struggling economy, by generating jobs and, thereby, revenue to the Government.
One of the areas which could contribute to this improvement would be rehabilitation of the current housing stock, requiring less importation of material.
Some of these properties may be currently abandoned - with mortgages in place - but could be renovated to restore value.
These projects could be done through a partnership of bona fide developers and the mortgagees in place. Value would be restored, as the property is made more marketable.
Evan Archer