buyer

Purchasers’ risk in progressive payment

THE National House Buyers Association (HBA) has complained to the Minister and those under his charge about purchasers becoming victims when they lose their homes as a result of foreclosure proceedings taken against them by banks to recover loans taken by developers secured by purchasers’ houses bought from the same developers, because the said developers did not settle the loans taken by them. The crux of the problem is that the Housing Ministry-prescribed sale and purchase agreement (SPA) allows the developer to build the purchaser’s house with the instalments of the purchase price paid by the purchaser from the day the SPA is signed. On top of this, and even more seriously, the developer is allowed to borrow from the developer’s banks on the security of the purchaser’s property. The pur...Read More

Pre-requisite condition for licensing of a housing developer

It is noteworthy that the Housing and Local Government is providing further protection to house buyers against the antics of irresponsible developers. The recent amendments to the Housing Development Act comes to mind. One of the most pertinent clause that was amended is Section 6(1)(b) of the Housing Development (Control & Licensing) Act, 1966. The matter refers to the amendment to the requisite deposit, which is refundable, from the current RM200,000 to 3% of the construction cost. Small developers who build small number of houses in the smaller towns and where total construction cost is RM2mil or less, the RM200,000 that they are currently forking out actually represents over 10%. Therefore, for them the new 3% is actually a vast reduction! To a big project developer whose construct...Read More

PR1MA now chasing profit, not helping first-time owners, says house buyers’ group

(April 20): PR1MA Corporation Malaysia (PR1MA) has strayed from its objective of building affordable homes in urban localities and instead has become profit-oriented, going into joint ventures with private developers, the National House Buyers Association (HBA) said. Its secretary-general, Chang Kim Loong, said the corporation under the Prime Minister’s Office has relaxed many of its housing requirements and allowed private developers to come in as joint venture partners. “We know these private developers are profit-oriented and they are not there to do charity. Therefore, why should PR1MA share their cake with them?” Chang said it has increased the ceiling price of a house from RM350,000 to RM450,000 last year and allowed second-time buyers to purchase PR1MA units. “The ...Read More

Buyers: Cheap homes too small, too few, too far away

PETALING JAYA: So-called affordable homes are too small, too far away and too few, the national house-buyers’ association said today, disputing a claim by developers of an oversupply of affordable homes. The National House Buyers Association (HBA) also criticised the unrealistic definition of “affordable homes” used by the Real Estate and Housing Developers’ Association (Rehda). HBA secretary-general Chang Kim Loong concurred with Bank Negara Malaysia that most Malaysians could not afford homes costing between RM300,000 and RM500,000, which falls within Rehda’s definition of affordable housing. Chang said the price should be between RM150,000 and RM300,000. Speaking to FMT, he pointed out that Bank Negara had in fact estimated the maximum price of an affordable home to be only RM282,000, d...Read More

Malaysian housing developers ignoring freebie guidelines

SOME seven months after more cooling measures were introduced, home prices continue to inch up as developers prefer to offer rebates than price their products lower. Many appear to be not abiding by guidelines on “freebies”. Some banks are also still basing their financing on the sales-and-purchase agreement (SPA) price rather than net selling price, a survey by the national House Buyers Association (HBA) has found. On a more positive note, except for one small developer, the projects surveyed by HBA volunteers did not offer the easy financing developer interest bearing scheme (Dibs), which the government had banned from this year. Brochures and other materials gathered by volunteers at various property fairs, however, indicate that many developers – even the bigger ones ...Read More

Is RENT-TO-OWN the answer to home ownership?

Let’s face the elephant in the room, shall we? For most Gen Ys out there, obtaining a home loan in the current economic condition seems like ‘Mission Impossible’. When you cannot purchase a house, rent instead, some people would advise. However, unbeknown to many Malaysians, there is a third option available – the rent-toown (RTO) scheme. The RTO concept operates based on a lease-purchase contract, between a buyer and developer. The buyer will first rent a property from the developer with an option to purchase at the end of the contract period, which could range from 20-30 years. There is also an option fee involved which must be paid by said buyer; a typical figure is roughly 5% of the property price. In RTO deals, a certain percentage of the monthly rent paid will be credited to the prop...Read More

HBA Maintains Easing Lending Guidelines is not the Solution to the Inaccessibility of Affordable Housing Loans

  PETALING JAYA: Relaxing banks’ lending criteria is not the solution to address the issue of access to affordable housing loans, said the National House Buyers Association (HBA) secretary-general Chang Kim Loong. “The current problem is that house prices are too expensive in relation to the buyers’ income. This has resulted in some prospective house buyers having their loan applications rejected. However, the solution is not to relax lending guidelines but to find ways to lower property prices. The relaxation of lending guidelines will surely worsen the situation and speed up the road to a ‘homeless generation’ that HBA has been warning about for years,” he told SunBiz, addressing the Real Estate and Housing Developers Association’s (Rehda) call for banks to be less strict in their l...Read More

Full-disclosure by developers

THE National House Buyers Association seems to have finally succeeded in persuading the Government to make developers provide purchasers with a full set of detailed approved documents of the property. In fact, this has all along been a legal requirement. As far as landed properties are concerned, the approved layout plan and the approved building plan are to be included in the sale and purchase agreement (SPA) as the first schedule and second schedule respectively. With respect to the strata titles, there are the site plan, layout plan, floor plan of the parcel, storey plan of the building, accessory plan and common facilities plan, all approved, which comprised the first and second schedules. The Urban Wellbeing, Housing and Local Government Ministry has now agreed with HBA that the detai...Read More

Of speculators and bogus house buyers

Immediate government measures are needed to tackle issue “Harga Rumah Melampau” – that’s the desperate cry of the rakyat against skyrocketing house prices as headlined by one of the widely-read Bahasa Malaysia newspapers. In English, it translates to “House prices are ridiculous”. The National House Buyers Association (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 be able to buy their own houses. In time, Malaysia will face a “social crisis” with serious political implications if the majority of the lower and middle-income groups do not have affordable houses. The matter is of grave urgency because the homeless hail from the...Read More

New doesn’t mean perfect

Complaint One “I received the keys to our home and to our dismay, the property had many defects, ranging from minor problems to major misalignment of the walls and beams. The developer is rectifying the minor defects but is not willing to ‘align’ the walls or beams that have been placed improperly. How can I have the process for rectification expedited as we have paid in full and are still unable to occupy the house?” Complaint Two “The floor tiles in my apartment’s living room are not properly fixed. When one walks over them, they give a certain hollow sound. There are at least 30 floor tiles with this problem. Also, the edges of the walls where the tiles meet were not properly done. I submitted a complaint form, but the developer has not done anything to rectify them. Now, it’s been almo...Read More

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

Make Kampung Baru a PR1MA Malay suburb

THE 1Malaysia People Housing Programme (PR1MA) is a government initiative with the promise of an affordable home for every couple that deserves it and meets its criteria. The Government’s main contribution to ensuring affordability is its land, which is a significant subsidy. It is necessary for the organisation to have clear criteria for these affordable homes. PR1MA will have to be comprehensive in all aspects of house purchase: criteria for qualifying, build and sell; types of houses, the exclusion of commercial properties, the grievance redressal regime between purchaser and PR1MA, controls over sub-sale and, of course, appropriate sanctions for dishonesty in dealings with PR1MA. They must build the right product at the right place with the right pricing and the right numbers. Already,...Read More