BSP is committed to helping Small to Medium Businesses (SMEs) in Papua New Guinea grow and this is evident in the fact that more than 14,000 SME’s are using the bank’s Smart Business Account and have direct access to finance via the BSP Smart Business Loan.According to Dennis Konu, who heads the banks Smart Business Unit, since 2013, BSP has provided in excess of K40 million in loans to this valuable group of bank customers.  The Smart Business Loan product was introduced as part of BSP’s strategy to empower the large number of small to medium businesses in Papua New Guinea.“The product has generated considerable interest around PNG and is gaining momentum with over 800 loans funded. Despite the inherent risk associated with small business lending BSP has developed a process and criteria that suits the capacity of small businesses,” Mr Konu explained.The Smart Business Loan is accessible to registered SMEs that have traded for more than 12 months and use a business bank account. BSP extracts critical financial information about the business, from banking records to calculate how much the business can borrow. The loan is aimed at SMEs that may experience difficulty in meeting certain commercial lending requirements such as providing financial statements, or contributing equity and loan collateral.Owner of a local SME, Tapioca Delight, Ginia Siaguru, is a success story of the BSP Smart Business Loan product, which she used to purchase equipment that has helped her business grow.She says: “Looking for Small Business Loans can be challenging, but with BSP, having an established banking relationship helped me to further explore other options like opening a Business Account. It is through this Smart Business Account that has paved way for us to take out a Smart Business Loan.”Another success story, Rossica Salika, who owns Rossal (Tual Immess) Limited, a tailoring business in Port Moresby shares similar sentiments to Ms Siaguru. Rossica admits that it was difficult to seek additional finance to purchase new sewing machines to increase productivity. She had operated through her personal bank account. Things changed for the better, when she was introduced to the Small Business Package and Loan products.“The business was in operation for over 12 months, and my bank statements were easily obtained and supplied when I applied for a Smart Business Loan. BSP staff were helpful and assisted me in completing the application and ensuring all requirements were provided,” she said.Rossica used the Smart Business Loan to purchase two new sewing machines, hired two more seamstresses. Her business is growing. And with her business growing she is able to give local women an employment to “earn some money and support their family”.

Receive a FREE insurance health check and you will go into the draw for a luxurious dinner for two! 3 x Lucky Winners will be taking a break from their busy Pacific Games schedule to enjoy the superb surroundings of an International Hotel. Call now on 321 6808 or click here to contact the team at Trans Pacific Assurance Limited.In Papua New Guinea there are low penetration levels of insurance – among the lowest in the world. This results in risk and insecurity. Recent major fires in Lae and Port Moresby have caused tremendous damage to property and businesses not to mention the hopes and dreams of those worst affected. This article will explain how a free insurance health check on your home or your business can provide great security and peace of mind.The health check process aims to summarise your insurance profile. Many property and business owners in the past have discovered too late that their coverage did not include what they thought it included. Greg Peck, General Manager of L.J Hooker agrees “Some property owners ignore the risk of not being insured and a lot of property owners are under-insured or are even sold the wrong policy to start with”.To avoid this situation you should be asking yourself very basic questions about your exposure across the entire range of possible problems. Let’s talk through an example: if a 3 bedroom home in Tokarara valued at K450,000 was damaged by fire or storm – it would use all of your life savings to rebuild. An appropriate policy covering you against this might cost less than a packet of biscuits and a can of soft drink! Now though, your life savings would be free from the burden of rebuilding your home.Investment properties, businesses and their buildings are also open to the insurance health check process. This recently resulted in a new TPAL customer saving money and greatly increasing the level of coverage.Workers’ Compensation and Public Liability insurances are an absolute must as accidents do happen in and around workplaces and your risk really needs to be managed. “Don’t pretend for a minute you don’t need insurance” says Peck “as it is only after the event we hear from property and business owners and we see who’s been careful and thoughtful with risk and who has been ‘unlucky’!”.Call 321 6808 now or click here to arrange a meeting with the team at Trans Pacific Assurance Limited.To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

Since April BSP has been giving away tickets to randomly selected customers who have successfully conducted mobile banking transaction. In June, BSP is giving away tickets to customers who download and activate the new BSP Mobile Banking App. 20 customers were selected each week for general admission passes and + 1 lucky customer gets selected for the major giveaway, which is an all access Event or Venue Pass.Over 150 tickets have been given out to randomly selected customers who purchased Top up via BSP Mobile Banking in April and in May 3rd Party Account transfers.  n June, customers still have the chance to score Free Tickets to the Pacific Games but this time, BSP is giving away four (4) tickets to each of our selected customers. This is a chance to share the games with your family or friends. You can be selected, by simply downloading the BSP Mobile Banking App and Activate.There will be 20x family pack (General Admission) and 1x Family (Major Giveaway) to be given away  in the next few weeks, in the lead up to the 2015 Pacific Games. Get the word around and get registered for the weekly draw. All successful Mobile Banking App activation will be registered, and random selections will be made each week. BSP ticket giveaway winners will be contacted directly by BSPClick HERE for more information on BSP ticket giveaway. What can you do with the BSP Mobile Banking App?The BSP Mobile Banking App can be downloaded at the Google Play Store, Windows Store and the Apple App store. All you need is data and a reliable internet connection through your Smart phoneIn one application, you can sign in and:Have access to your account anytime, anywhereView your balances and recent transactionsSend Wantok Moni, to anyone through their Mobile phone number.Pay your Bills or schedule paymentsTop up prepaid mobile phones and easiPAY electricity units (and someone else’s)And much more! See HERE for more information. Get Started!If you’re an active Mobile Banking customer and have a smartphone! Then you’re ready to get mobile. All you need is your BSP Customer Identification Number, 16 digit BSP Issued card number plus your Mobile Number.Download the BSP Mobile Banking Application fromActivate UserSelect the BSP Mobile Banking app iconTerms of Use – Select Accept to proceed or Reject to ExitSelect Sign In iconSelect Activate UserEnter your CIF (User ID) number, Card Number and Phone NumberSelect Submit buttonYour One Time Password (OTP) will be sent via SMSEnter Your One Time PasswordCreate your PasswordRe-enter your PasswordSubmitHaving problems? Read HERE!How the BSP ticket giveaway worksIn June Customers with Smart phones can now Download and Activate their BSP Mobile Banking App. Only successful Mobile Banking App Activations will be registered and are randomly selected to get Free Tickets. The draws will be done weekly.Data is collated weekly.Selections done weekly.Selected Customers will be contacted directly by the BSP and their names be posted on BSPs Social Media and website.Tickets will be sent to nearest BranchTo collect tickets customers must present VALID identification: Driver’s License, Employer ID Card, Passport etc.To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

As we are approaching the half year point, affordability in housing is starting to look promising. Just recently we saw the launch of Gobuta Street Estate, a housing project only 20 minutes from downtown Port Moresby.The development is good news for countless Papua New Guineans out there who are seeking to find not only affordable but quality accommodation.Located at Tokarara in Port Moresby, Gobuta Street Estate is a joint venture between the National Housing Estates Limited (NHEL) and developer Berkeley Capital.Due to Papua New Guinea’s (PNG) chronic housing shortage, Berkeley Capital Asia believes that their Public Private Partnership (PPP) is a small step in the right direction towards alleviating this issue. It is their belief that such a partnership will put the National Housing Commission (NHC) in a more viable financial position to provide social housing.The PNG National Sales Manager of Berkeley Capital stated that the development is about to set a new benchmark in exclusive and secure living.What makes this latest development even more eye-catching is Berkeley Capital’s wealth of experience in construction, project management, cost management, design and architecture, project funding facilitation and corporate structure advice.Put quite simply, they are well versed with the Australian Standard Housing Sub-Division and Australian Standard homes for local buyers here in PNG.As the leading home and land provider in several countries, Berkeley Capital Asia aims to provide homes that are aligned with the housing schemes already available to Papua New Guineans in the companies they work for.“During meetings with NHE it became apparent that there was a lack of this type of home that was accessible for people with access to their company’s Housing Scheme,” commented Reuben Kautu, the PNG Managing Director of Berkeley Capital.The partnership with NHEL has allowed Berkeley Capital to produce affordable home within the price range of K515, 000 – K595, 000. Australian Top Quality at an Affordable Price Of course this price range may be out of reach for some Papua New Guineans but it’s inclusive of a number of extras not seen in your average development.Firstly, the estate comprises of 48 homes each on their own land and all built to Australian Standards whilst even meeting the cyclone ratings of North Queensland builders.Secondly, the homes are also stylish, secure, ready to live in, and in a location that ensures an increase in value for soon-to-be homeowners.Thirdly, Gobuta Street Estate is also unique from other housing developments through its “turnkey” finish.Mr. Kautu explained that this simply means that all a buyer has to do is move their brown goods in at completion.Moreover, everything is included in the price from landscaping and separate laundry to clothes line, oven, cooktop even a dishwasher and a letterbox.As security is an issue of concern among many Papua New Guineans, Gobuta Street Estate has also taken this into account by providing 24hour guards at the entrance gates of the estate.Along with 24hour security and a 2m high fence surrounding the estate, the homes inside will also have their own timber fence of 1.8m.Berkeley Capital’s Development Manager, Mr. Alex Simpson assured that this will be an exclusive estate and the hundreds of thousands of Kina being spent on landscaping will make these homes really stand out.Other possible joint ventures with NHE may be in the pipeline for Berkley Capital but right now it’s baby steps so as to ensure that what is produced is suitable not only financially (and of good Australian quality) but culturally for the people of PNG.With Berkeley Capital’s expertise in both pre-construction and construction, things are already looking on the bright side with over 22 properties sold in 2 weeks during the pre-launch.If you’re interested in Gobuta Street Estate, then visit the properties listed on our website and inquire through the contact agent form.To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

Image: H2OffIt is often said that Papua New Guinea (PNG) is a country with an abundance of natural resource wealth. The development of these resources contributes immensely to the country’s growth in terms of revenue. Resource projects like PNG LNG have already increased PNG’s revenue through its first full year of exporting liquefied natural gas from its $US19 billion plant.More so, these projects have had a positive impact on areas like employment, construction, transport and communication which ultimately signal economic growth. PNG’s economic growth is good news as it means a more tangible focus on infrastructural developments is seen by the people. The development of both existing and new infrastructures means better service delivery for the bulk of Papua New Guineans who live in remote areas. For a country that is home to rugged terrain, there is a dire need for efficient road network systems, wharves and airstrips in order for Papua New Guineans to have access to services.Perhaps a sure sign of PNG heading towards greener pastures in infrastructural developments is the proposed establishment of the Infrastructure Development Authority (IDA). The notion behind IDA is to use profits from the LNG project to both “rehabilitate and maintain” infrastructure, as supported by Sir Mekere Morauta. The proposed establishment of the IDA would prove vital to solving PNG’s infrastructure woes.This effect could be greater if the IDA’s funding comes from sources other than only the Government’s annual budget allocations which might be inadequate to support infrastructural developments. Moreover, the uncertainty as to whether IDA will be involved in the maintenance of existing infrastructure is a hindrance to PNG’s infrastructural development. This grey area needs to be clarified as it would be more logical for IDA to rehabilitate current infrastructure as opposed to investing in new infrastructure that will not incur greater returns. 2015 Pacific Games Pushing Development ForwardAlthough the establishment of the IDA is still underway, it does not mean infrastructural developments are at the bottom of PNG’s priority list. One can already see the facelift PNG is getting in the upkeep of its infrastructure in the nation’s capital of Port Moresby. Huge events like the 2015 Pacific Games have pushed for the development of sporting facilities and stadia namely: Taurama Aquatic Centre, Sir John Guise Stadium, Games Village, Rita Flynn Netball Courts and the Sir Hubert Murray Stadium.Then there is the refurbishment of the Gordon Market, the iconic Pineapple building, Port Moresby General Hospital (POMGEN) and Jackson Domestic and International airports; as well as the development of new infrastructure like the Kookaburra Flyover at Erima and the Convention Centre which is in preparation for the 2018 APEC Summit. Other projects in the pipeline are the Highlands Highway, the expansion of Lae port and the establishment of a four-lane highway which will link the trading heart of Lae to its airport at Nadzab.Furthermore, demand for construction is also on the rise with buildings popping up everywhere. New Developments and Fast Growing Suburbs Leading PNG’s GrowthFor instance, Avenell Engineering Systems’ (AES) construction of the tuberculosis ward at Daru General Hospital, residential dormitories at Port Moresby Technical College and new buildings for the Pacific Adventist College, as reported by Business Advantage. Similarly, the housing sector is progressing with the establishment of projects like Duran Farm, Gobuta Estate and Edai Town  which are all hoped to counteract the high cost of real estate. Other provinces like Milne Bay and East New Britain (ENB) have put great emphasis on maintaining key infrastructures that will ultimately ensure their advancement in terms of business and service delivery to its people.Whilst several development are improving PNG’s growth,  the Government needs to take into consideration infrastructural developments in not just Port Moresby but all other provinces to advance as a nation.Above all, revenues from resource projects like the LNG should be used extensively to fund infrastructural projects and upcoming establishments like the IDA which could prove useful towards aiding development. Infrastructural developments in PNG is key to linking the whole country and achieving growth.To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

At the launch of several large projects in the Southern Highlands Province, PNG’s Prime Minister Peter O’Neill said that the “winds of change are coming” to some of the Nation’s most remote districts. In a speech to people in both Kagua and Nipa, he emphasised the dramatic growth rate of PNG’s economy which is driven by new projects and housing developments not only in Port of Moresby, the main capital, but also in distant suburbs which are recently experiencing incredible growth such as East New Britain, the fastest growing province in PNG.He also talked about the billions of Kina in various trust accounts and the projects they are funding, though the funds need to be managed better. East New Britain was previously devastated by volcanic activity in 1994, destroying 80% of the buildings in Rabaul, which was the local capital at the time. Currently, there are plans to focus on reviving the old business district in Rabaul, starting with the old market area. Ekonia Walom, the new town manager, talked about plans currently in place to rapidly bring much-needed development. He spoke of plans to establish a new cheque account and a new accounting system. The expectation is that this will strengthen the administration and improve accountability. From Volcanic Destruction to Fastest Growing Province in PNGGiven how devastating the volcanic activity in 1994 was for East New Britain, impressive development has already occurred. A high number of development applications are being reviewed by the East New Britain Physical Planning Board. ENB’s new capital of Kokopo  is now the fastest growing town in the country and the trend seems to be constant as about 95% of the applications were for projects in Kokopo. These projects include The Gazelle International Hotel, a service station, the Gazelle Restoration Authority, the Kokopo Sports Stadium, and a new headquarters for Kokopo/Vunamami LLG. Housing Projects and Touristic DestinationThomas ToBunbun, chairman of the East New Britain Chapter of the Communal Land Development Ltd., talked about the mix of urban and rural businesses in Kokopo and how it has become a tourist destination. Tourism has gone a long way towards supporting development. Connecting Kokopo to the provincial Tokua airport has helped support business and tourism.The additional development has helped to increase local demand in the construction industry, which has also been good for the local economy and fot the growing province in PNG. This demand is in the form of both commercial and residential developments.New residential estates include, but are not limited to Tibur, Kenabot, and Takubar. The New Guinea Islands Historical Society (NGIHS) founder Gideon Kakabin talked about the Warangoi area as another highly desirable location. It has a rural character, yet also has easy access to the local capital of Kokopo via well-developed roads.If you prefer cooler weather, Toma is a potentially desirable destination. People seeking affordable housing and willing to commute can check areas on the outskirts of town or beyond. Those areas tend to have lower prices, yet are still within reach of the in town amenities. Mr. Kakabin indicated that the predominant housing stock in the growing province consists of three-bedroom stilt houses. They are typically made of timbers, but have an iron roof and wood floors. More recently, brick is becoming more popular.Because of the low crime rates and incomparable natural beauty of this province of small islands, many people consider it to be an ideal place to live. It has a great climate and incredible views in unique terrain. The limited number of tribal groups in the area helps keep friction at a minimum. For many people, it is a quiet and peaceable area.To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.

The recent figures for the Consumer Price Index in Papua New Guinea show a vertical shift for housing and health industries in the last four months. Since October the health sector has experienced a dramatic growth of 24.1percent in CPI conquering the first position in the Consumer Price Index.Also the Real Estate sector shows a similar and interesting trend with CPI scaling by 14.9 percent. While CPI graph for the health sector literally shows a skyrocket trend from October to December and a gradual increase afterwards, the real estate market CPI shows a steady increase over time.It is interesting to notice that the rise for the health group in its Consumer Price Index was due to the increase in health consultation fees in private hospitals, probably in response to the introduction of new facilities and the need to cover the costs. However, the increase in consultation fees was not the only responsible factor for the general rise of the CPI; as a matter of fact, individual prices of medical products, such as pain killers and antibiotics, have increased substantially leveraging health’s CPI. The Real Estate Market CPI increase reflects with major improvements and new developmentsSimilarly, the real estate market has experienced a strong growth due to Government and private initiatives to restore old buildings and run general maintenance activities. Some of these initiatives include the First Home Ownership Scheme introduced by the Bank of South Pacific, which provides clear guidelines and privileges to first home buyers in order to buy a house. Recently, the O’Neill Government is also working toward giving 40,000 free land titles to public servants and then to working class individuals to push the country toward faster development. One of the most acclaimed and ambitious projects is the Duran farm, which is a major master plan worth K7 million being built just outside of Port Moresby and is expected to provide 2500 houses yearly per contractor. In addition to the housing project, several amenities will be built around Duran Farm, such as schools, hospitals and banks. Papua New Guinea is heading toward exponential growthAll these initiatives have made homes for sale and rent more expensive with owners hoping to close advantageous deals with potential tenants or buyers. As discouraging as it may sound, the increase in rentals and sales might not entirely be a bad news as this means also facility improvements, regular maintenance activities and repair operations along with upcoming new developments in city areas.From these statistics it is reasonable to think that an increase in health and real Estate CPI, respectively by 24.1 and 14.9 percent, is proportionally linked to the introduction of better health care, improved facilities, and a general increase in the standard of lifestyle and security across major cities of Papua New Guinea. To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.

Hausples.com.pg  is very excited to announce the launch of a new “International Section” featuring Fijiand Australian properties.Whilst Hausples.com.pg is very proud to be advocating for better access for housing for the average Papua New Guinean, our new international section recognises that some lucky citizens and residents are considering property purchases overseas. As such, our new International Section features Australian and Fijian properties; the most common countries for PNG nationals and expatriates to purchase real estate.In this newsletter we consider the lifestyle and financial benefits for Papua New Guineans to invest in Australian properties.  An upcoming newsletter will focus on Fiji and a further exciting strategic partnership for Hausples, our real estate agents and our sellers and landlords. Stay tuned! Why consider purchasing in Australia?One of the most valued benefits for Papua New Guineans when purchasing Australian properties is the availability of high quality education. When you couple this with the strong investment returns available on Australian properties, it’s not surprising that Australia is an investment hotspot for PNG nationals.Cayman Properties’ Queensland international marketing specialist Angela Vinnicombe says “An increasing number of PNG families are realising the dual benefit of investing in Australia now with a view to achieving significant capital returns once their children complete their education and return to PNG. The families then have the option of renting the property out to further their investment or selling it.” Which cities to consider?Strategically, the most popular locations for education and  investment in Australian properties are Cairns and Brisbane in Queensland.Angela says that for senior schooling and university education, Queensland and Papua New Guinea have a natural affinity with a similar climate and short travel distances from Port Moresby to Cairns of 1 hour and 40 minutes, whilst to Brisbane the trip takes just 3 hours.“80% of my Papua New Guinean client base is investing to support their families educational aspirations and Queensland is seen as the ideal market” explains Angela. Where to invest and buy Australian properties?“The best locations to invest in are those with easy access to a mix of both Government and private schools, universities and other tertiary institutions such as TAFE. These locations are sought ofter by both local Australians and foreign citizens, this ensures strong demand and the  potential for rapid capital growth” says Angela.Cairns is one of the most sought after cities by Papua New Guineans. According to Angela “The beach suburbs of Trinity Beach, Trinity Park and Kewarra Beach are particularly popular due to their close proximity to the beach and natural parkland areas. In addition, these suburbs are a short walk or bus trip to the commercial hub of Smithfield which is home to restaurants, shopping centres and the popular James Cook University. James Cook University is well renowned and offers a wide range of courses in business, law and science.’Outside of Cairns, Angela cites Brisbane as the second most in-demand city for investments. “The capital of Queensland, Brisbane has all of the conveniences one would expect from an international city. Suburbs likely to achieve strong capital growth include Brighton and Narangba in the north, while in the south Crestmead, Logan and Beenleigh are seeing strong investment returns.Finally, the Gold Coast is experiencing a renaissance, with the subsurbs of Pimpama, Coomera and Helensvale proving very popular given their proximity to the GriffithUniversity Parkwood campus.Of course there aren’t just investors looking to purchase residential properties in Queensland. More and more Papua New Guineans and foreign expatriates are diversifying their portfolio with strategic investments into blue-chip commercial, industrial and retail properties. Are you interested in finding out more about purchasing property in Australia? Click Here.

2014 saw continued prices increase in PNG real estate, causing concern among Papua New Guineans who feel that affordability is at an all-time low.Moving into 2015, there are range of government initiatives aimed at delivering affordable housing to Papua New Guineans combined with a number of public and private sector projects which will continue to bolster PNG’s economic growth. What result will these factors have on the property market? Will 2015 be the year of the affordable home for the average Papua New Guinean?To answer these questions, Hausples.com.pg interviewed several major PNG real estate agents to garner their views on the market forecast for 2015. Read on to find out more. Hypothesis One: Drop in PricesAccording to Century 21 Siule Real Estate’s Christian Arek, this year will see a drop in the real estate market.“I would say the real estate market would be dropping this year… [It] will continue to drop a bit initially and then eventually level off” predicted Arek.This is great news for the bulk of Papua New Guineans who are renting as this means a wider range of rentals that will fall within their budgets. From recent trends and surveys, it appears that high quality houses will still be able to be leased at a reasonably steady rental price while ordinary properties will be the most affected by price fluctuation.“[The market drop] presents a lot of options for tenants in the rental market because they have more to choose from in terms of budgets. Moreover, landlords are more willing to negotiate renting costs.” added Arek.As for those who are planning to sell their property this year, Arek stated that it’s uncertain as to what sellers should anticipate. Definitely buyers will be more motivated to purchase a house relying on the First Home Ownership Loan Scheme which increases the possibilities of making a big and important investment. Moreover, it seems that the Government is making steps toward a new project to give away Free Land Titles to ordinary PNG citizens which will give them a security to take a loan. However, ultimately sellers make the decision about whether to sell at a particular price so the market will once again be largely in their hands.DAC Real Estate’s property manager, James Beangke also anticipates that the real estate market will decline in 2015.“Generally speaking, the Government has settled [real estate] regulations and taxes but considering the ongoing PNG LNG Project, there will be a lot of people who will be able to spend in the market. Hopefully, this drop will pick up after March,” stated Beangke.In particular new affordable housing projects such as Duran Farm and Edai Town will slowly release large amounts of quality affordable housing onto the market at reasonable prices. This increased supply should mean price declines and relative bargains for purchasers. Hypothesis Two: Increase in PricesOn the other hand, LJ Hooker’s Gemma Mavo forecasted that real estate market prices will increase this year. Mavo, however, stated that this will only happen if there’s increased competition.“My view is that real estate prices will at best remain flat over 2015. However, I believe that it’s more likely that due to the various government initiatives and continued strength of the economy, competition will increase and this will have a tendency to increase both rental and sale prices”Mavo points out increased prices may particularly apply to properties for sale as strong rental demand will mean better returns for investors and therefore higher rental yields and prices.——————- With more real estate companies springing up, as well as the introduction of the First Home Ownership Loan Scheme and Free PNG Land Title Giveaway Trial, 2015 will certainly be an interesting for Papua New Guineans and might represent the best opportunity yet for ordinary citizens to secure a home. Stay informed about the latest news and the first home ownership loan scheme! To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.

As part of its promise to ease Papua New Guinea’s chronic land shortage the O’Neill government has announced a stunning plan to give away 2,000 free PNG land titles in every province of the country. 2014 was a positive year for potential PNG homeowners with the establishment of the First Home Ownership Loan Scheme (FHOS) to assist people to obtain a home loan at an attractive rate. Whilst the FHOS was a welcome initiative, the requirement that a borrower supply a land title as security for the loan has meant that many ordinary citizens have been unable to secure funding. Thus, as good as the FHOS is, it’s clear it was excluding a major portion of the population, in particular those families who did not own any land and, as a consequence, could not apply for a loan without being able to provide a security asset. Free PNG Land Titles will be given to ordinary citizens In 2015 the Government has identified the problem and has come up with a stunning solution that may change many lives and probably improve the economy and wealth of the country. According to the Planning Minister Charles Abel the Papua New Guinea Government will provide 2,000 free PNG land titles to citizens to build affordable houses in each of PNG’s provinces. The programme is aimed at working class people and not the wealthy. The pilot for this ambitious project will start in Port Moresby where Mr Abel says the government has identified land close to Jackson International Airport which the National Airport Corporation has committed to being made available. Following the Port Moresby pilot allocation, the city of Lae will have 2000 titles made available near the Nadzab airport. Free PNG Land Titles will lead to Housing The free land title allocation forms one part of a broader scheme where every single one of the 89 districts in the country would receive approximately K1 million to construct 10 houses for the local public servants. Mr. Able said, “We are giving every district K1 million to build public service housing.” The idea is to start the project first by providing housing for public servants. Once this has been completed, the next step will be to extend the project into the private sector. Mr. Abel, who serves as the chairman of the Ministerial Committee on Affordable Land and Housing, emphasized that the purpose of this initiative was to help average working class citizens and Papua New Guinea build homes. Its focus was not to give additional land to well-off individuals who are already homeowners and who can easily apply for a loan. PNG Land Titles will secure citizens to access the First Home Ownership Scheme Prime Minister Peter O’Neill has taken the first steps in getting this program up and running by depositing K200 million into the Bank of South Pacific to support the FHOS. The next step is to distribute the free PNG land titles to the population so that they can provide a security for receiving a loan and eventually build a house. Prime Minister O’Neill realizes that several steps must be followed to get the free PNG land titles into the hands of ordinary people. Once this has happened, ordinary citizens can go to the banks and secure a loan because they have their title as security. The project is expected to provide the citizens of Papua New Guinea the ability to purchase a home for K150,000 and repay the loan over 40 years with a very low rate of interest. Stay informed about this programme and the first home ownership loan scheme!To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.

Well it’s come to that time of the year again where we’re all called to care and share more. As exciting as the festive season may be, it doesn’t come quite cheaply. But before you get all worked up into a frenzy about digging deeper into your pockets, Bank South Pacific (BSP) is here to save the day with its products focus of the month. That is, the Personal Loan and the Savings Secured Loan (SSL). BSP’s two products are beneficial during this time of merriments as they offer Papua New Guineans a chance to save while at the same time splurge. Be it giving your loved one a thoughtful gift or organising a memorable trip for your family this Christmas, the Savings Secured Loan and Personal Loan have got you covered. These two products have different features but what sets them apart from other loans is that they have been developed to assist Papua New Guineans in saving. BSP Savings Secured LoanThe notion behind the Savings Secured Loan is to secure one’s nest egg by borrowing against it. For example, let’s say you have been putting aside money into your savings account but then an urgent family emergency arises. You don’t have any cash on hand except the kina in your savings account. Instead of going straight to the bank and withdrawing all that money, you can acquire a loan that is twice the amount of your savings. Your savings will then be used as collateral during the period of the loan. As an example, if have saved K 600 and would like to obtain a loan under the Savings Secured Loan, you would then be eligible for a loan of K 1,200.The beauty about the loan is that you can earn a higher interest while paying off the loan at a sound rate. Other benefits of it include a quick turnaround time, fast disbursement, a competitive interest rate and same day approval of 24 hours. As for the requirements to apply for the a Savings Secured Loan, it is quite simple really. You would need to be a BSP customer with a regular income who’s displayed a savings pattern over a period of time in either a BSP Kundu or Plus Savers accounts.Now that we have established the gist of the savings secured loan, you’re probably thinking that it does not get any better than this. Well, you would be wrong because the Personal Loan is also a cause for celebration! BSP Personal LoanBSP’s Personal Loan is pretty much self-explanatory. Basically, you can get a loan for whatever personal reasons you may have. Whether you need to purchase a headstone for a relative who’s passed away or you need to lend financial assistance to a bride price, the Personal Loan will be of great aid to you. Apart from its flexibility of purpose, the Personal Loan requires minimal documentation and no security whatsoever.The plus side of the Personal Loan is that it does not call for security. Therefore, you do not need to provide any collateral. Like the Savings Secured Loan, the Personal Loan’s eligibility criteria are verified by BSP depending on an applicant’s income, credit history (in terms of any other loans acquired by the applicant) and repayment history. As far as any other loans offered out there, BSP’s Personal Loan and Savings Secure Loans are trump cards. So if you’re concerned about saving a lot of Kina but do not want to touch your savings this festive season then head on out to your nearest BSP branch!Copyright Hausples.com.pg, article by Pauline Mago-King

The spread of settlements continue to be an issue for those who dwell within major cities like Port Moresby. To many, they are treated with caution and labelled as an eyesore. However, what many of us continue to overlook is the fact that settlements accommodate countless Papua New Guineans who cannot afford to rent or buy properties of their own.One such group of people who are to this day still being compelled to live in settlements is the public servants of Papua New Guinea (PNG). It may come as a surprise as to how numerous public servants have resorted to living in such illegal “establishments”.Yet this is the blatant reality of PNG’s recurring affordable housing challenge where almost if not all Papua New Guineans are not able to meet the PNG Real Estate Industry’s accommodation rates. The rates at which properties are put up for lease or sale are ludicrous to the extent where the fortnightly salary of an ordinary Papua New Guinean cannot cater for half the cost of renting. Hence, a myriad of Papua New Guineans are left with no other alternative but to live in settlements. PNG Public Servants and National Housing Estates Limited affordable housing initiativesAccording to Wera Dirua, the Estates Manager of the National Housing Estates Limited (NHEL), the high rental prices are forcing many public servants live in settlements. “It’s very difficult now to find affordable accommodation because the ICCC cannot control the real estate market…”  explained Dirua.The NHEL, a subsidiary of the National Housing Corporation (NHC), is starting to tackle PNG’s chronic housing problem via its plans of upgrading and building living quarters for the multitude of public servants struggling to find accommodation.“Most of them [public servants] are going back to the squatter settlements and we are trying to address this. We believe that public servants are a government entity who drives the economy of our country. They must have a good place to sleep, eat and find comfort so that they are more productive. That is why our company [NHEL] is focused on making housing more affordable for Papua New Guineans in the next 20 to 30 years,” said Dirua. Dirua, however, mentioned that PNG’s dilemma of lack of housing will not be solved overnight. Rather, it will take time and the availability of resources and funding to alleviate the issue. Dirua stated that it’s the NHEL’s main aim to build 10, 000 houses in the next 5 years so that people in need will be able to move out from squatter settlements and he remains adamant that the NHEL will achieve its primary objective of creating more housing. Duran Farm, Edai Town and the First Home Ownership SchemeIn a sign that both the public and private sectors are starting to tackle PNG’s affordable housing shortage head-on, a number of significant initiatives have been launched this year including the Duran Farm Housing Development near Lae, the Edai Town Development in Port Moresby and the PNG First Home Ownership Scheme Loans.For NHEL’s part, the launching of the Duran Farm Housing Development, a major housing master plan that’s worth K7 million, is step toward alleviating some of the settlements near Lae. In addition, the housing development at Edai Town approximately 20 kilometres form Port Moresby offers moderately prices homes starting at K168,000.Still Diru warns that should nothing be done to combat PNG’s housing settlement issue, this could lead to even more squatters settlements. “People are struggling to live especially in a city like Port Moresby that is becoming the centre of PNG. It’s developing at a fast rate due to the LNG and other projects. If we don’t do anything now, squatters settlements will pop up like mushrooms all over the place.” In all though, Dirua is optimistic that the NHEL will be able to turn things around for PNG’s housing industry so that Papua New Guineans can enjoy their right to a decent yet affordable home. Register your interest in affordable housing now!If you want to be kept informed of new affordable housing initiatives in PNG Click Here and submit your details. If you want to register your interest in the PNG First Home Ownership Loan Scheme Click Here.  Copyright Hausples.com.pg, article by Pauline Mago-King

Papua New Guinea’s economy has been growing consecutively for ten years providing the entire country with new housing projects, roads development and better access to critical infrastructure such as power. As of today this positive trend seems likely to continue with the development of a new and much bigger international Airport at Nadzab near Lae.  The new Nadzab international airport will dramatically increase PNG’s international exposure and will effectively become the new ‘Airport City’ of Papua New Guinea. The announcement of the new airport came directly from the Minister for Public Enterprises and State Investments Ben Micah whose goal is to make Nadzab an international airport by the end of 2016. The first flight connections will directly link Nadzab to Australia and Japan by the second quarter of 2016 making Nazdab an important departure point for Papua New Guineans travelling abroad. The Minister also announced that the project also aims to capture even more international traffic and as such is negotiating with the Chinese Government to have direct flights from Nadzab and Port Moresby airports to Beijing, China. In addition, Mr. Micah announced the construction of a highway to link Lae with Nadzab. Considering Nadzab is only 42 Km from Lae, the project will provide a four lane highway to be completed by China Railway International by the end of 2017. This will definitely ease the connection between the two cities who will mutually benefit from the highway and will also allow the transportation of materials from Lae to the airport. Mr. Micah added that with the construction of the railway from Lae to Ramu Valley for the transportation of containers and additional shipments, the plan is to transform Lae into a port city and industrial hub for moving materials to nearby Nadzab. It seems that major changes will continue to occur over the next few years changing the perception of Papua New Guinea and giving to the country an international presence thanks to this fantastic new initiative. Not only will this project allow for increased access to Asia for Papua New Guineans (and vice versa for Asians travelling to PNG), it will also spur new housing projects, jobs and infrastructure all of which is needed to continue Papua New Guinea’s economic and social growth. Keep reading the Hausples.com.pg New Blog to stay up to date with PNG real estate and housing markets.

Threats that can end our dreams are all around us – but they can and should be planned for and avoided. On the night of the 24th October this year, fire ravaged the Mt Hagen trade center causing millions of Kina of damage. Lae has also seen many homes, businesses and lives destroyed by intense heat and flames – only to be reduced to ashes. These losses are occurring countrywide and right throughout the year. Every year. And this is damage caused only by fire – one of many risks here in PNG. Accidents, theft, extreme weather events, loss of income or business, the cost of medical problems – these are all risks that can impose deep hardship and financial ruin. You can and should take control. These risks can and all too often do destroy the greatest investments we make in our lives. It is up to each of us to take advice from experts and manage these risks. They will help to identify where risk exists, quantify and analyse its aspects and components and help to develop risk response strategies providing the best insurance plan. Also, monitoring these risks continuously to determine how they change over time is greatly important.  These are all concrete steps you can take to protect your greatest investments. Lives, homes, businesses and vehicles – invested and protected.  Papua New Guineans are increasingly active in business as the country’s formal economy continues to expand and it is up to each and every one of us to take steps to protect what belongs to our families for the future. Like a breath of fresh air, Trans Pacific Assurance Limited are reviving the insurance industry in PNG since their opening on the 29th April 2014.  And now it is the public of Papua New Guinea who can reap the benefits by relying on the efficient and effective insurance expertise on offer. After all, the tremendous personal benefit gained through understanding and using insurance products is still not understood by too many – all this is set to change with the arrival of TPAL – experts at managing risk. Trans Pacific Assurance Limited is located on the 3rd floor of Defens Haus, Downtown Port Moresby. They provide general insurance products such as motor, business, medical and home insurance products.  Professional risk management services are delivered by a team of highly skilled professionals who continually showcase their dedication to the all-important customer providing that “extra mile” service across the whole of PNG. Call TPAL today to make sure you protect your part of PNG’s economic prosperity. The wealth of the nation is improved when each of us does well – we all benefit because there are more jobs and more money and more customers and more sales. To fail to protect our investments in businesses and homes and vehicles is to risk the wealth of us all. Copyright Hausples.com.pg

Landlords will be subject to tighter controls and scrutiny as part of the Papua New Guinea Government’s 2015 Budget. Due to concerns about landlords not declaring rental income to the PNG Internal Revenue Commission, PNG landlords will be required to register with a Taxation Identification Number (TIN) so that their leases will be validly recognised.Given the relative lack of regulation of PNG’s real estate market, the move by the Government to require landlords to supply a TIN is significant. The new legislation will mandate that landlords provide a valid TIN on lease documentation in order for the IRC to properly identify potential tax payable when stamp duty processing occurs.The IRC intends to cross reference stamp duty lease data against the IRC’s records of TIN lease data to better identify landlords that do not declare rental income. This strategy is forecast to generate K15 million in additional tax revenue for the forthcoming financial year alone. Landlords not presently registered with the IRC should register with a TIN prior to July 2015 in order to ensure existing and new property leases are deemed as valid. Click Here to view / download the IRC Taxation Identification Number (TIN) Application Form What do you think of this initiative? Do PNG landlords currently pay enough tax?

In light of Papua New Guinea’s dilemma of housing shortage, the National Housing Corporation (NHC) recently launched a social housing program called the Duran Farm. The Duran Farm project is the NHC’s pragmatic step towards curbing the lingering lack in housing for public servants and residents. NHC’s great initiative would mean that the bulk of Papua New Guineans forced to live in settlements and second-rate housings will not have to settle for less any longer. A major housing master plan that is worth K7 million, Duran Farm is located on Portion 528 near 8 Mile which is just outside of Port Moresby. It is expected to deliver 2500 houses yearly per contractor. Apart from the construction of these houses, there will also be the creation of various amenities like schools, clinics, hotels, shops, banks and a fire station. Duran Farm is the first urban development lease where underdeveloped land will be completely obtained by the NHC and the Housing Department. Furthermore, what makes it even more unique is that the total cost of development will not be incurred by the end user. Not only is Duran Farm a beacon for countless Papua New Guineans struggling to find affordable accommodation but it is also an indicator of housing development finally reaching Papua New Guinea’s shores.  Construction of Duran Farm is set to commence once a tender notice is posted by the Central Supplies and Tender Board. So far there are 106 successful applicants who have been submitted to the National Development Bank (NDB). Although Duran Farm will bring about housing development for Papua New Guinea, it will not ultimately alleviate the NHC’s current predicament of finding means to accommodate public servants. Since most of Papua New Guinean land is customarily owned, this poses a problem for any form of housing development like Duran Farm. Being located on land that is customarily owned, Duran Farm project is already facing threats from the landowner. Landowner, Ogoni Dabunari Land Group of Baruni Village has already warned that the multimillion project will not progress if it is not sufficiently compensated. As a result of this, it is important that the Government insure that housing development is carried out on land without any customary ties, preferably State land. Yet this is not the case for Duran Farm and so it is up to the Government to ensure that it proceeds without any hiccups as the project has drawn a lot of interests from both the private and public sectors. Copyright Hausples.com.pg, article by Pauline Mago-KingFollow Hausples.com.pg to read more news!

Are you thinking of selling a home in PNG? If you’re considering putting your home on the market then you need to do one important thing first – PREPARE your home for the real estate market. In case you’re baffled on how to go about doing this, Hausples has got you covered with our guide to preparing your home for its potential sale. As any Papua New Guinean knows, Home sales in PNG are fairly stable at the moment with the market coming down from the boom times experienced at the height of the PNG LNG project. In addition, banks and financial institutions are being more stringent in ensuring that applicants fit their lending criteria with regard to one’s affordability which is utting further pressure on the market. Despite this, any homeowner can’t still achieve an excellent sale price for his or her home with a little planning and some investment in time and marketing dollars. The first step in achieving you desired price when selling a home in PNG is to source the expertise of a properly qualified real estate agent rather than relying on your own wits and whims. Hausples caught up with Strickland Real Estate’s Gayle Nast to get tips on fixing up a home before going head on with the inevitable sale. As a real estate professional that’s been in the game for 21 years, Nast explains that it’s imperative to involve realtors as they are objective and this is particularly so when it comes to real estate in the major cities of Port Moresby and Lae. “It is wise to use the services of a professional real estate agent to conduct the negotiations for price, settlement, what stays with the property [assets] and any other aspect.  The real estate agent is non-emotive and impartial whereas some vendors [sellers] and purchasers can become very heated and emotional during the negotiation and selling stage.  By engaging a professional real estate agent, you can prevent the stress of negotiations and sometimes end up with a very positive result…” Having worked in both the real estate markets of Port Moresby and Sydney (Australia), Nast is well-versed in ensuring that the vendor makes a successful sale. First decide when is the best time to sell your home Nast stated that the vendor’s inclination to sell their home hangs on the absence of any financial pressure. Therefore, the nonexistence of financial pressure plus the vendor’s willingness to sell is equivalent to the best time for the vendor to make a sale. Moreover, PNG vendors have a lead in being able to sell their home at any time without being influenced by climatic changes.“Typically, Australian and New Zealand Real Estate markets focus on the spring period. However, this focus isn’t applicable here in PNG, mainly due to the fantastic climate,” explained Nast. Second hire a respectable solicitor or lawyer To ensure that there are no legal pitfalls after the property is sold, it is absolutely critical to hire a qualified legal adviser and this is particular important in Papua New Guinean given the majority of land is subject to state leases. According to Nast, there are often technical legal issues involved with selling PNG property and so it is paramount to obtain advice about the aspects of legal documents associated with the sale and settlement of a property. She added that the use of a solicitor would ensure that all paperwork and titles pertaining to the sale of the property would be accessible to the vendor. Nast recommended that a number of essentials be cross-checked against the paperwork such as the following:Check out, compare and interview several real estate agentsCompare their marketing strategy, recent sales and negotiation skillsAsk for referrals from previous or current clientsAsk for their professional opinion as to what the property would sell forFinally ask what their commission is for the successful sale of the property Third, know the target market for your home In addition, vendors should also determine who the target market is for their particular property so that they market to that audience appropriately. As stated by Nast, the target market is determined by the property being offered for sale. Therefore, buyers can range from first-home buyers to second and third-time home buyers. And when it comes to buyers, it’s all about leaving them with a lasting first impression where they are captivated with your property. So ultimately, the vendor’s goal is to make certain that their property’s presentation is impeccable.“Presentation makes the property welcoming, neat and tidy…tidy up outside, especially any pet mess, rubbish [and] ensure that the steps leading to the home are safe and secure,” stated Nast.In all, keeping in mind all the above points is key to making your very own successful sale. Whether you own a timber or clad house, pylon or stilt style, selling your home can and should deliver to you a good return. Copyright Hausples.com.pg, article by Pauline Mago-King

As a PNG homeowner, it’s your duty to make your home a reflection of you. Whether you’re an artsy sort of a person or someone who likes subtlety when it comes to decorating, there’s no reason why you can’t make your home be YOUR home. The idea of decorating or refurbishing a home tends to give people the impression that it’s a hefty exercise. However, if done right it’s bound to be a lot less costly. In this Hausples.com.pg guide we give you some tips on you to spruce up you home without spending all your Kina. The first tip – plan, plan, plan. Planning involves mapping out how you want to decorate; how long it’s going to take; what type of theme you’d like to incorporate into your PNG home; and most importantly how much you’re willing to spend and whether it’s in line with your budget. From your budget, you should have a fair idea of how much you want to spend. With your budget sorted out, you have two approaches to take; you either brainstorm simple Do-It-Yourself (DIY) projects or go for the long road by carrying out a complete renovation of your home.For those who love a challenge of DIY projects then you’ll be pleased to know that spicing up your home is as easy as ABC. You can start off by searching the Internet, particularly websites like Pinterest that give 101 ideas on decorating. Otherwise, the old magazines you have lying around the house could also be a perfect source of inspiration.From the balcony to the bedroom, there’s so many things one can do transform their home’s image. The front door entrance is a great place to make a bold statement. With the help of a hammer/drill and nails, you could hang an intricate cane placemat or carving. Or if you think your furniture is looking a bit drab then instead of purchasing a new set, save money by re-upholstering with your own favourite choice of colours. You could also treat your wooden furniture like cabinets, tables and chairs to a fresh coat of varnish or paint.For décor, there are a multitude of items one can use for interior decoration. In a country like Papua New Guinea (PNG) that spins on the axis of culture, one can use various cultural artifacts for décor. Be it beautifully woven bilums or striking clay pots, artifacts are a great way of investing in your home’s “look”. Renovating on a budget… it is possible! If you already have arrays of décor and have tried your hand at DIY projects and still want to do something more extreme like renovating then that’s fine too. It is essential to decide where exactly you’d like to renovate. After doing so, the next most important factor to keep in mind before venturing onto the path of renovation is once again, BUDGET. If you’re on a mission to save a lot of Kina, it’s wise to get quotations from all the shops you’re planning to purchase from. The quotations allow you to compare prices and determine where you’re likely to save a Kina or two.In Port Moresby, people have a range of hardware stores to look at if they’re considering a home makeover. Yet what most people are looking for when shopping for building supplies is to get not only quality but also cheap materials.For instance, if you’re thinking of giving your bathroom a fresh look with some new tiling then it’d be best to check out a shop like City Pacific Hardware. Unlike other hardware stores, City Pacific Hardware is the perfect option for the grassroots. Word of mouth has proven that this hardware store is the ideal place to scope out refurbishing supplies. It’s been running for four years and seen a great influx of Port Moresby residents.Whether they’re in the process of building their first homes or simply renovating, Port Moresby residents have turned to this hardware store for their needs, supply-wise. Supply and Distribution Manager of City Pacific Hardware, Crisanto Solis stated that since the store’s establishment, it has seen a large number of people coming in to purchase construction materials.“What makes our shop different is that it is a one-stop shop with cheap prices. The products we sell are not only affordable but of good quality.”Also, NasFund members can hold onto their hats as this hardware shop accepts Nasfund cheques. The convenience and affordability provided by shops like City Pacific Hardware are two elements to consider when giving a home a fix up.For those with looking for a one-stop-shop, the Hardware Haus chain of stores operates out of a number of locations  throughout PNG including Port Moresby, Lae, Goroka, Mt Hagen, Madang, Wewak, Kavieng and Kokopo. Hardware Haus carry a very diverse range of hardware and home furnishing to complete almost any job PNG home related task.Whether you’re decorating or renovating your home, dressing up a home doesn’t have to be an expensive task. If you’ve taken the liberty of doing your homework then you’re likely to save a lot more Kina and ultimately end up with a refreshing home.City Pacific Hardware is located at Erima just next door to Erima Big Rooster.Business Hours: Monday – Sunday 7:30 – 16:30Copyright Hausples.com.pg, article by Pauline Mago-King

Following the announcement last Wednesday that the Bank of South Pacific and the Government of Papua New Guinea  have formally signed an agreement to make First Home Ownership Scheme Loans (FHOS) available, BSP have now announced the eligibility criteria and application forms for people to apply for a loan. Key details of the FHOSEligible borrowers will have access to heavily discounted interest rate and preferential loan terms. Below are the key terms of the FHOS:Maximum loan amount of K400,0004% fixed rate of interestUp to 40 year loan termNo bank charges of feesNil penalties for early repayment of the loanCertain restrictions on the resale or refinancing of the loan Eligibility Criteria and how to applyEligibility Criteria for a First Home Ownership Scheme LoanBe a citizen of Papua New GuineaProvide proof and evidence of a 10% contribution to the equity of the home purchased (for example in the form of a deposit)Be employed and earning a regular incomeNot have previously owned a homeIntend to live in the home (home must be owner-occupied)Documents that must be provided in support of the applicationBank statements if you are BSP customer3 months of prior bank statements if accounts are not held with BSPStatement regarding current or prior debts owed to banks or other lenders for the preceding 3 months3 months of prior payslipsEvidence of current employment or a copy of your employment contractHow to apply for a First Home Ownership Scheme LoanComplete the BSP Loan Application Form or visit the FHOS page of the BSP WebsiteSubmit copies of the Title Deed confirming ownership of the land or the lease if State ownedStatutory declaration confirming this is your first home and you will live in the homePlease note: Further eligibility criteria and loan conditions will apply, please seek clarification by visiting the BSP website or a BSP branch.Commercial terms of the loanMaximum loan amount of K400,0004% fixed rate of interestUp to 40 year loan termNo bank charges of feesNil penalties for early repayment of the loanCertain restrictions on the resale or refinancing of the loan How does the FHOS compare to a standard loan?The following is a comparison of the commercial terms of a First Home Ownership Scheme Loan versus a typical home loan from one of the major commercial banks in PNG such as BSP or ANZ:4% fixed interest VS current interest rates of approx 8.45% – 9%40 years for repayment VS typical repayment terms of a maximum of 30 yearsNo bank fees VS a variety of fees and charges levied on the typical home loanNo penalty for early repayment VS  charges or ‘break costs’ associated with a standard home loanOn the basis of the above, the First Home Ownership Scheme Loan provides a large incentive for people searching for their first home to buy in PNG.However, people considering First Home Ownership Scheme Loans should also bear in mind some of the important terms and conditions attached to the loan. For example, the restrictions on the sale of the property or refinancing of the loan is designed, amongst other things, to keep the house in the family for enjoyment by future generations. In addition, it is expected that this restriction will also prevent people speculating on property price rises and selling homes at a profit.In addition, the requirement that the home be owner occupied will restrict borrowers from renting the property and this must be borne in mind in case a purchaser anticipates future career moves or other lifestyle changes that might require them to move home.Finally, borrowers should be aware that the First Home Ownership Scheme Loans are still a commercial arrangement between the borrower and BSP, and are not a form of grant, tax break or other concession by the Government. As such, borrowers will still be expected meet their loan obligations. What do you think of the FHOS? Are the eligibility criteria fair? Will you be applying? Tell us in the comments below

Owning a family home is a dream for many Papua New Guineans. Due to recent rapid developments in Port Moresby and the influx of people, accommodation is a real issue, sparked particularly by the massive PNG LNG Project. The Real Estate market is faced with an economic imbalance where demand for affordable housing is not met by supply. In recent years a few have turned their homes into rental spaces, but even renting a room or a house is still very expensive. As such, the Papua New Guinea working population have typically found that owning a home remains a dream. But thanks to some new developments close to Town, achieving the dream of owning a great home is one big step closer. Paul Barker stated in his article on pngblogs.com that the main constraint upon affordable housing has been inadequate supply of land with secure title, either for commercial developers, institutions or individual households. Barker added that it’s not actually a land shortage, but land has been poorly administered, with inadequate and uncoordinated urban planning and rigid customary land laws.Accommodation is not a problem for people with senior positions in public and private sectors but it is for the middle income earners. Barker stated that recent years have seen wealth distribution in PNG increasingly distorted, with the elite able to thrive on appreciating property assets, or secure relatively affordable property overseas, whilst the rest, including most public servants, struggling to find decent affordable roofs over their heads.Recently, however, a good number of commercial developers have secured land in the outskirts of the city to build good quality homes at affordable prices. We hope to see better and greater changes in the real estate market when housing supply increases. Also, the government of the day is actively addressing the accommodation problem.  On a more encouraging and positive note, the government’s intervention would at least give hard working Papua New Guineans the golden chance of a lifetime – owning a home. As we speak, at least a few are aware that the O’Neil-Dion Government has established a joint initiative with Bank South Pacific in providing the First Home Ownership Scheme (FHOS). For eligibility requirement for the FHOS and to register your interest read the Hausples FHOS blog article.If you’re reading this and you are interested or if you have been looking for a home to buy that is of high quality and at an affordable price EDAI Town is the place to shop at. EDAI Town is one of the newest developments on the outskirts of the city. The town is conveniently situated 20km from POM CBD (Central Business District), and is 5km from the NCD border, along the economic corridor of the LNG plant site, with an excellent highway connecting it to the city. Traveling North West of the city, you go past Port Moresby Technical College, Curtain Brothers PNG dock yard and then you’re heading toward EDAI Town. If you are considering this place, you can be assured that this development embraces safety, security and serenity as it offers affordable accommodation in a large gated and guarded compound. The Master Plan also includes space for development of amenities such as medical services, retail outlets, a hotel and petrol station. Public amenities in the Master Plan include a police station, fire station, school, market and training centre. Space has also been allocated for a church. EDAI Town embodies community living and promotes landscaped spaces within a large compound.The home styles are provided in affordable price ranges. Hibiscus (Type A Building) is a traditional high set home (3+1 rooms), built up upper floor enclosed area of 92 sq m (square meters) plus 28 sq m of open verandah and external staircases and 70 sq m open concrete floor at ground level. Siale (Type B Building) is a modern two-storey detached home (3+1 rooms) with a built up floor area of 140 sq m. Orchid (Type C Building) is a double-storey duplex unit (3 bedrooms), each with a built up floor plan area of 90 sq m and the Bougainvilla (Type D Building) is a three bedroom double-storey town house, with a built up floor area of 88 sq m. Early Bird Special Offers are now available with the selling price range for the house and land packages for the different home styles below:Bougainvilla – from K268,000 – K348,000 on land size ranging from 94 sq m to 200 sq m.Orchid – K368,000 on land size ranging from 160 sq m to 220 sq m.Hibiscus– from K498,000 – K590,000 on land size ranging from 440 sq m to 650 sq m.Siale – from K730,000 – K790,000 on land size ranging from 470 sq m to 875 sq m.For more detailed information on the home styles and choice of units available with prices you can visit the Edai Town Website: http://www.edaitown.com or Click Here to see the Edai Town homes listed on Hausples.