Property Information

Making housing affordable to the rakyat

The National House Buyers Association (HBA) acknowledges the challenges faced by the prime minister in tabling Budget 2017 in view of the slowdown in the global and regional economies and steep drop of the ringgit. HBA’s wish list to stem excessive speculation in the property sector that had caused the unbridled escalation of property prices will remain. We must also continue to challenge some ill-concocted ideas that may prey on the government’s laxity. It was for this purpose that HBA accepted the Ministry of Finance’s invitation early this month to table a paper entitled Affordable Housing: How the Rakyat could own it? in a focus group dialogue with all stakeholders, both government and private. The government now seems to be serious about doing something. If so, it has to make several ...Read More

Look at the fine print in guaranteed rental returns

CALL them what you like leasebacks, buy-to-let, cash back, own-for-free developers have come up with creative plans to woo investors with guaranteed rental returns (GRRs) on yet-to-be-built properties. Developers would agree to pay buyers rentals ranging from 8% to 12% per annum or a proportion of the purchase price for a certain length of time. This kind of purchase, which has become increasingly common judging from the press advertisements, sounds enticing to investors who do not want the trouble of managing their own investments. You buy the property, and you get the rental returns thrown in. While GRRs could be very attractive, investors need to know that the scheme is not as simple as it seems, much like ads that appeal to our desire to lose weight quickly, get rich fast or strike the...Read More

Limit PR1MA’s special end-financing scheme to first-time buyers, says HBA

PETALING JAYA: The Special PR1MA End Financing Scheme (SPEF) and subsequent sale of 1Malaysia People’s Housing Programme (PR1MA) homes should be limited to only first-time house buyers, said the National House Buyers Association (HBA). HBA secretary-general Chang Kim Loong applauded the SPEF, which will assist the lower income group to obtain financing to buy their PR1MA homes as many potential buyers have been denied financing by banks. “However, as this is a special financing scheme for the lower income group, HBA hopes that this financing scheme is only reserved for first-time house buyers as PR1MA has already allowed second-time house buyers to buy PR1MA properties,” he said in a statement yesterday. Chang said the subsequent sale of PR1MA units should be regulated and urged Perbadanan...Read More

Let the house buyers beware!

To not educate yourself and learn from the mistakes of others only sets you up to be at best, disappointed and at worst, being ‘house poor’ FOR many people, the purchase of a home is the most important financial decision of their lives. Therefore, it makes sense to approach the decision carefully. The purchase of a home is unlike any other consumer product as it covers a lot of ground – including legal, financial, technical and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best, disappointed and at worst, being “house poor”. Caveat emptor! Let the buyer beware! The idea is that buyers take responsibility for the condition of the items they purchase, and should examine them before purchase. How true is this for the property...Read More

House buyers’ trap

  WHY does this keep happening to house buyers in Malaysia? This incident happened two years ago in Taiping where a laid-back community of mainly retirees found the roof over their heads nearly, and in some cases, actually, blown away. The purchasers had paid the developer and had moved into their houses and lived there for 10 years. Problem was that the purchasers paid the developers in cash remittance without taking out end-financing loans. Unknown to the purchasers, the developer did not pay the developer’s bank to settle the developer’s loan vide bridging loans. The developer’s charge remained and grew into bigger indebtedness to the bank. Apparently, the developer’s bank had not been collecting payment of the loan from the developer, even as the developer was collecting the insta...Read More

House buyers still being hoodwinked?

FOR many years, the National House Buyers Association (HBA) has been sounding alarm bells that prices of houses are getting more and more unaffordable for the average rakyat, especially the lower and middle income segment. Based on current starting salaries of about RM3,000 per month and with prices of new launches of apartments in the Klang Valley being priced in excess of RM500,000, it is almost impossible for our younger generation and single parents to own their own homes. Unless strong measures are taken by the Government to address the issue of steep rise in house prices, Malaysia risk facing a “homeless generation” that can cause various social issues with far reaching complication. HBA had previously expressed its gratitude and thanks when the Prime Minister introduced stronger mea...Read More

Helping the poor own houses

BUYING a home is typically the largest and most complicated financial commitment most people will ever make”. This is the phrase used whenever there is talk of homeownership and it applies to low-income households, too. First-time buyers face many barriers, one of them being the burden of monthly payments, having enough savings to sustain the responsibilities of owning a house, and income stability to qualify for housing loans. Even if they do qualify, potential buyers may be hampered by a lack of affordable homes in a preferred location or even information on how to buy a home. While the basics of acquiring a home is accessible to the educated and higher-income group, the low-income households do not have access to such information and perhaps have no idea about how to become homeowners. ...Read More

HBA wants the BTS model for affordable houses

SHOULDN’T buyers of affordable houses be given more protection? Do they have lawyers to advise them? And act for them in court against dishonest developers? Are they expected to spend a lot of money pursuing their interests and entitlement? Even the reasonably well-off suffer because of the lopsided sale & purchase agreement (SPA) provided by the Housing Ministry and exploited by developers. HBA’s long campaign against the sell-then-build (STB) system should be vindicated in the case of buyers of affordable houses. The buyers of affordable houses are people of modest means, and deserve to be protected. BTS 10:90 vs STB The current STB system has caused abandonment and, worst, foreclosure of the purchaser’s property by the developer’s banks. The STB is the developer’s dream as it allows...Read More

HBA applauds implementation of BTS policy by KPKT

KUALA LUMPUR: The National House Buyers Association (HBA) hails the announcement made by the Minister of Housing and Local Government Zuraida Kamaruddin to ensure housing projects adhere to the build then sell (BTS) concept. According to the statement, the HBA supports the overwhelming benefits of the BTS 10:90 that the present housing minister is referring to. The system that was referred to is not an absolute BTS concept but a hybrid that the HBA termed as build then sell 10:90 (BTS 10:90). Briefly, in this system, buyers pay 10% down payment upon signing the Sales and Purchase Agreement (SPA) and the remaining 90% will be payable upon completion with the issuance of Certificate of Completion and Compliance (CCC), with utilities connected and houses ready for immediate occupation. This i...Read More

Fear of homeless generation

THE National House Buyers Association (HBA) has been warning the Government for many years that prices of property have risen beyond the reach of the majority of Malaysians and that unless it takes serious measures to tackle this issue, a “homeless generation” will emerge. Putrajaya’s housing programmes, including giving subsidies to Malaysians to own a home, are not holistic solutions to this country’s housing woes. The Government must move away from the mentality of “giving fish” to teaching people “how to fish” – in other words, empowering the public. The Government has been providing subsidies and social housing to the poor for generations. But has that improved their lot? These subsidies/incentives come from taxpayers’ pocket. Invariably, a taxpayer who cannot afford to buy a house wi...Read More

First-time house buyers to gain

HBA is happy that more affordable homes are to be built under Budget 2015 and DIBS ban stays. THE National House Buyers Association (HBA) wishes to thank the Prime Minister for the measures announced in Budget 2015 to build more affordable homes for the rakyat. HBA is grateful that the Prime Minister rejected calls from the Real Estate and Housing Developers’ Association Malaysia and other groups with vested interest to reintroduce Developer Interest Bearing Scheme (DIBS) for first-time house buyers. DIBS The HBA is glad the Government has continued to heed our call to ban DIBS or any permutation that entails interest capitalisation. Developers, being entrepreneurs, have to be responsible and bear the risks that come with their investment. They should not be allowed to enjoy profits at the...Read More

Finally an honest admission – House prices in Malaysia are unaffordable

THE National House Buyers Association (HBA) is glad that the research report by Khazanah Research Institute (Khazanah Research) released on Aug 24, 2015 titled “Making Housing Affordable” shows that average house prices in Malaysia are more than four times the median income, which makes such properties to be considered as “seriously unaffordable”. HBA has been raising alarm bells for many years that prices of property in Malaysia have risen beyond the reach of the majority of the rakyat, both in the lower and middle income segments and unless serious measures are taken by the Government, an entire “Homeless Generation” comprising mainly the lower and middle income and the younger generation will not be able to afford to buy their own homes and this can bring about social problems for the c...Read More