risk

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

One abandoned housing project too many

Ministry: 134 abandoned private housing projects in three years. A total of 134 abandoned private housing projects were recorded in Peninsular Malaysia between 2013 and November, 2016, according to Deputy Minister of Urban Wellbeing, Housing and Local Government Datuk Halimah Mohamed Sadique in reply to a question in Dewan Negara Dec 6, 2016. She said the number included 26 abandoned projects this year. The government has allocated RM20mil to revive abandoned private housing projects next year. She, however, noted that next year’s allocation is less compared with the RM40mil this year. Scenario A: “Our sheer bad luck to buy into an apartment that has now been declared as ‘abandoned’. We have to continue to service the interest to the bank especially when the bank has progressively released...Read More

Moneylender licence ‘ill-advised’ proposal

HBA says scheme will drag house buyers deeper in debt THE National House Buyers Association (HBA) views with grave concern on the statement by the Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar that eligible housing developers can now apply for moneylenders licences to provide loan facilities of up to 100% to property buyers. Instead of assisting house buyers get a “soft loan”, it seems that house buyers are dragged into deeper debts unwittingly. Such a “scheme” will only bring more harm than good and we will attempt to elaborate why. Interest rates The effective interest rate for a conventional housing loan, from banks and financial institution, ranges between 4.6% and 5% depending on various factors such as the amount borrowed, risk profile of the borrower, dura...Read More