“Build and Sell” could be win-win for
homebuyers and developers
Media Statement
by Ronnie
Liu Tian Khiew
(Petaling Jaya,
Thursday):
The recent call by the Prime Minister
for the “build and sell” policy in the housing industry is timely and should
be implemented as soon as possible.
We were taken aback by the
negative attitude taken by the Housing and Local Government Minister Datuk
Seri Ong Ka Ting on the matter. He should study the call made by the PM
carefully before shooting from his hip.
Some have argued that such
policy would shoot up the prices of new houses to an unaffordable level
which in turn works against the interest of the homebuyers.
But the “build and sell” could
be a win-win situation for both the homebuyers and developers if we care to
adopt some changes in our approach.
We can, for instance, create a
“book and pay later” method of sales and purchase. Under such a scheme, the
homebuyers need to book the unit they like before the completion of the
project. They have to pay a substantial amount as booking fee/ down payment
for the chosen unit before building started or completed. This would take
away the risk of “no buyers” considerably on the part of the developers. And
the buyers only need to start paying the developers with the bank loan
obtained earlier upon completion of their units.
Under such a scheme, the
developers would have no choice but to ensure quality for the homebuyers, or
risk cancellation by them.
If other countries country like
Thailand could succeed with the” build and sell” policy, we do not see why
we could not do it in this “Bolehland” of ours.
The Ministry of Housing and
Local Government must also do their part by cutting red tapes to speed up
the process of approval. We must not allow corruption to seep in at
different stages, adding high cost to the properties inevitably.
The homebuyers in this country
have been shortchanged for a long time. It’s time for meaningful reform in
the housing industry for the benefits of homebuyers. The housing ministry
must not be seen protecting only the interest of the developers. Ong must
always bear in mind that he is a minister of housing, not a minister for
housing developer as claimed by many.
The EPF board can also play a
role in the proposed “book and pay later” sales and purchase method by
allowing its members to withdraw EPF savings for booking fee. Many a
homebuyers in the past could not buy their own homes simply because they do
not have sufficient fund to pay for down payment.
Such a new policy would
certainly enable more EPF members to purchase their own homes, giving the
housing industry a new boost.
(27/5/2004)
* Ronnie Liu
Tian Khiew, DAP national publicity secretary
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