property

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

New government, new hope for Malaysian property market?

Pakatan Harapan’s policies and programmes as outlined in The People’s Manifesto provide great anticipation for homebuyers, developers and investors alike. If done right, these strategies will go a long way in curbing the housing affordability conundrum.  The 14th Malaysian General Elections (GE14) on 9th May 2018 will go down in history as one of the most memorable days for millions of locals nationwide. The majority voted in favour of the opposition alliance to serve as the country’s new government – the Pakatan Harapan (PH) coalition trumped Barisan National (BN), which has been in power for 6 decades. We are all excited to see how PH will bring forth positive change; the new government has promised a reformation of Malaysia’s administration and politics as well as sustainable growth and...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

Malaysia’s errant developers still not afraid

KUALA LUMPUR, Nov 17 — No amount of new laws against offences committed by property developers will be effective without strict enforcement, said the House Buyers Association (HBA) today. This comes as the Housing and Local Government Ministry moved to propose amendments to the Housing Development Act 1966 to impose stiffer penalties against developers of abandoned housing projects. HBA secretary-general Chang Kim Loong said tougher enforcement of laws was needed to deal with errant developers without which the new laws would remain “ornamental pieces”. “Wayward developers well know that their chances of getting away with their wayward deeds are extremely good,” he said in a statement. He called on the authorities to act against developers “without fear or favour”. He also said that while ...Read More

Malaysia’s property market in 2016: What to expect & predictions

INDUSTRY EXPERTS Warrick Singh Director of Business Development/Training of Asian Realty Sdn Bhd, Asian Land Auctioneers Sdn Bhd/Starfish Training Sdn Bhd  As we move into 2016, the ‘cloud of uncertainty’ hanging over the Malaysian economy would settle somewhat preceding several recent capital measures, such as the purchase of Malaysian bonds, intra-trade in Chinese Renmimbi instead of US Dollar and the offer of RMB50 billion of a protected Chinese capital market. Also, the development of the LRT/MRT lines which enhances connectivity to Greater Klang Valley including Seremban, Rawang and Klang will bode well for the residential and commercial property market. Malaysia generally has a young population where 80% of Malaysians are below the age of 50, which means the demand for houses is only...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

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

Plight of kampung land owners

Where’s the prosecution against the 205 unlicensed housing developers? BUYERS BEWARE BY CHANG KIM LOONG ABOUT two years ago, an English daily highlighted the plight of land owners who had entered into joint ventures with unlicensed developers to build houses on their (home owners’) land. Most of these deals involved land in the kampung (or villages). When these partnerships turned soured and were subsequently highlighted in the press, the Housing Ministry warned it was going to catch these businessmen, most of whom were small-time developers out to make a quick buck. However, until today, no action seems to have been taken on these errant developers while the victims continue in their miseries and financial nightmares due to abandoned projects and botched joint ventures. The Housing Minist...Read More

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