Property Information

Downside of interest bearing scheme

False market: The DIBS had created a false demand which in turn pushed up property prices making houses ‘seriously unaffordable’ to the average person. EVERY now and then some quarters will accept developers’ mantra to re-introduce the Developers Interest Bearing Scheme (DIBS). It should be noted that Bank Negara had prohibited and outlawed “any form of interest capitalisation scheme”. The economic downturn is seen as a fresh opportunity for DIBS to be reconsidered. This time around, it’s only for “first time house buyers”. Creating property bubble DIBS or any other permutation similarly “schemed” cannot be allowed to continue for the betterment of the housing industry because it risks creating a property bubble as prices have been artificially increased and they will create a snowball eff...Read More

Do necessary checks before buying

THE NATIONAL House Buyers Association (HBA) refers to the statements from the Real Estate and Housing Developers’ Association Malaysia (Rehda) that the recent proposal from the Minister of Urban Wellbeing, Housing and Local Government, Tan Sri Noh Omar for eligible property developers to be given a moneylender license is only for the property developers to lend money to buyers as a “bridge” for downpayment on their home purchases and not as a full loan as speculated claiming that most bank loans today will only give margin of financing of 80% compared with 90% previously. HBA reaffirms our earlier view that despite the clarification from Rehda that developers lend money to buyers as a “bridge” for down payment for houses priced at RM500,000 and below, this proposal is still detrimental to ...Read More

Damages for late delivery

Addressing and defining vacant possession. “MY new house is ready and I can now collect my keys,” or so the house-buyer thinks. No more having to pay rent. But his dreams come crashing down, however, when he is informed that although he may have gained vacant possession, he cannot not move into his house because the Certificate of Fitness for Occupation (CFO) is not ready. Months later, he receives a copy of the CFO, and when he asks to be compensated for the delay, the developer says liquidated damages for late delivery (liquidated ascertained damages or LAD) is calculated up to the date of their notice for delivery of vacant possession and not up to the date of the CFO. Who then is to compensate the house-buyer who has to service a housing loan for a house he or she is not allowed to occ...Read More

Compliance cost driving prices up

Cost factor: Developers factor in the utility contribution sums into the house purchase price; the ‘hidden costs’ which developers blame with some justification. YOU may recall from my earlier article that was published in my column titled: “Affordable Housing: How to own it?” that the National House Buyers Association (HBA) was invited to present a paper to the Finance Ministry and we offered 10 pertinent proposals with the view towards affordable housing. This article will continue with the rest of the proposals. Lower the cost While developers face the brunt of complaints about the increasing prices of houses, an important cause hidden away, thus far are the utility companies. The surcharge they add to a development’s fee is something substantial to be considered when purchasing a prope...Read More

BUDGET 2017 COMMENT The National House Buyers Association (HBA) secretary general Chang Kim Loong

The National House Buyers Association (HBA) acknowledges the challenges faced by our honourable Prime Minister (PM) in tabling Budget 2017 on Friday, 21st October, 2016 in view of the slowdown in the global and regional economies and also the steep drop of the Ringgit. We are grateful that out PM did not heed the advice from business groups with vested interest to relax some of the cooling measures announced previously to stem excessive speculation such as lowering the Real Property Gains Tax or re-introducing the Developer Interest Bearing Scheme for first time house buyers. We are indeed glad that a ‘status quo’ (an existing state of affair) was retained through the wisdom of our PM. The positive take from Budget 2017 in relation to property, in particular Affordable Home are as follows:...Read More

Affordable housing: How to own it?

Dream home: HBA has consistently called for government intervention to prevent a ‘homeless generation of young adult Malaysians’ from emerging, especially in urban and sub-urban areas, who, if not for wild speculation, would have been able to buy their own houses. THE National House Buyers Association (HBA) acknowledges the challenges faced by our Prime Minister in tabling Budget 2017 in view of the slowdown in the global and regional economies and also the weaker ringgit. HBA’s wish list to stem excessive speculation in the property sector that had caused the unbridled escalation of property prices will continue. We have also to continue to challenge some ill-concocted ideas that may prey on laxity by some departments. It was for this purpose that HBA accepted the invitation by the Financ...Read More