Wednesday, July 02, 2008

Build Then Sell

One of the biggest complaints that representatives in the Klang Valley, and probably in many cities throughout the country, is the issue of abandoned housing. I've written earlier about the problem of house-buying and I'll quote here:
Just for the purposes of comparison, when you do go out and buy your dream car, be it a Proton or a BMW, worth RM50,000 or RM500,000, what's the process like? Typically, you'll pay 5% to 10% downpayment and the balance once your car is ready for delivery in a week or two.

The question then is, why is it that we as house-buyers have to pay a 10% upfront, and subsequently continue making progressive payments over a period of two years or so, before finally gaining 'vacant possession'? Often, our banks would have disbursed some 90% of our housing loan facility for the purchase, before the house or apartment is even completed!
So when I read that the Selangor state government intends to implement the "build then sell" concept of housing, I'll all hands in support. The Star reported that
SELANGOR aims to take the lead in the “build-and-then-sell” concept for housing projects to reduce the incidence of house buyers who are cheated by unscrupulous developers.

[Tan Sri Khalid Ibrahim noted that] “In most developed countries, there is no such thing as you paying as the house is being constructed. For example, in Australia, you have the right to sell only when the project is completed. But in Malaysia, you can sell your housing project even before you complete it.”It was reported earlier that there are 141 abandoned projects in the state, 108 of them housing projects.

“We don’t want this to be done immediately, but it has to be done in stages so that in the future, there will be a lot more people who will build first before selling.The state and local governments are now facing a lot of problems as people are demanding to know why we allow buildings or houses to be built in a shoddy manner.”
I certainly hope to see the day in Selangor whereby houses are made before they are sold, for the protection of hard-earned savings of our Malaysian workers and families must be given absolute priority against weak and unscrupulous developers.

And I fully support the move by the state to "blacklist the directors and owners of the companies" so that they will not be able to 'return' under the guise of a different company resulting in more housing victims.
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