Buying Properties Like Rolling Dice
Property Investment is the Secret to Financial Freedom?
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Do You Know that Commercial Properties and ‘bungalow lots’ are NOT Protected under the Housing Development (Control and Licensing) Act 1966?
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I totally agree that home purchaser is at the mercy of developer to finished the “promised” project and buying new properties is like rolling dice!
All depend on Your Luck!
Yes……
You read it CORRECTLY! – LUCK!
It is not uncommon for the abandon property developers do not offer any explanation to their house buyers.
They normally would reply ““We are temporarily having some minor problems but will revive the project as soon as possible.”
The “as soon as possible.” day may never come!
The worst case is the purchasers still need to service the mortgage loans for properties that may NOT even exist in the future!
Read more on List Of Blacklisted Developers After Projects Abandoned Or Delayed
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Buying properties like rolling dice?
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Since the 1997 Asian financial crisis hit Malaysian shores and littered the real estate landscape with abandoned projects, there have been calls by the public for stricter regulations on property developers.
One result was amendments to the Housing Development (Control and Licensing) Act 1966 which introduced tighter laws and regulations pertaining to the development of residential properties to protect home buyers.
But this Act however excludes other types of property development such as commercial properties and ‘bungalow lots’.
And because of the shortcomings of the Act, it is prudent for property purchasers to tread carefully when committing to the purchase of real estate from developers.
Last year over 45,000 units of houses and apartments have been left abandoned because developers couldn’t complete the projects. That’s a lot of heartache.
Malaysiakini.tv has been highlighting the plight of purchasers of the Genting Valley resort which has been abandoned with the developer now under liquidation. They purchased bungalow lots for their dream home, but that dream has been turned into a nightmare as the liquidators move in …
Following on that coverage, we speak to two experts who’ve been keeping an eye open on property development — law professor Salleh Buang and legal advisor to the Malaysian Institute of Estate Agents, David Kok.
Both give an overview of the current situation, offer their views on what needs to be done to further protect property buyers.
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