Home ownership savings scheme needed for youth: FTU

RTHK：Video News

The Federation of Trade Unions on Monday suggested the government roll out a savings scheme for home ownership to help young people purchase a flat. The scheme aims to offer assistance to those aged 21 to 40. Under the party's proposal, young people would have to contribute 20 percent of their income on designated-government bonds or funds each month. The principal and interest would then be converted into a down payment when flat selection is held after eight years - the length of time the FTU says it would take to construct a residential building in the city. Even though assets and income tests would take place at the time of application, the FTU said that provided the total amount of assets a person owns was below the asset limit for subsidised home applicants during the year of flat selection, they would remain eligible. "We want to have a looser requirement for later on years, because we want to encourage youngsters to pursue their career aspirations, so we welcome them to have higher income, but that said, the only strict requirement is that they are not allowed to have any properties, I think that's quite fair among society," FTU member Joephy Chan said. Some participants would be given higher priority for flat selection. "Because the scheme is pro-family. We suggest applicants who have already married, and who already have children, they [can] have a higher preference to make a choice of flats," Bill Tang said. Tang, who is also a Housing Authority member, revealed he had already spoken to Rosanna Law, the Director of Housing about the idea. "She actively made a response to our suggestion that the government is willing to consider our suggestion, including some elements, for example, to encourage youth to have savings, encourage youth without any hesitation or obstacle to develop their career, and matching with the housing scheme. There are some elements that the government also wants to make some breakthrough." Under the proposal, participants would enjoy a maximum of three housing offers. In a bid to bar homeowners from speculation, they can only sell the flat based on the government's price list to eligible persons, such as subsidised home applicants.