The Consumers Association of Penang is strongly against the Urban Wellbeing, Housing and Local Government Ministry’s decision to allow developers to give out loans under the Money Lenders Act 1951 (Amendment ) 2011 . According to the Minister Tan Sri Noh Omar this is a win-win situation.
With all due respect, there is only one obvious winner from this scheme and that is the developer. After all Noh were also quoted as saying that “Our intention is to help developers sell the houses they have built”. Is the Government shifting the burden of unsold units to consumers?
Banks are exploiting mortgagors by taking out fire insurance on the mortgaged properties to cover the full amount of the loan which in almost all cases will be about 90% of the market value of the properties.
Market value is the combination of the cost of the land and of the building on it. Fire insurance does not cover land, but only the cost of re-building the building(s) on it.
Malaysia urgently needs a Tenancy Act (TA) which will offer protection to both landlords and tenants. A Tribunal should also be set up under the TA to settle disputes between both parties.
Tenants often complain about landlords that raise rents indiscriminately and impose unreasonable conditions. On the other hand landlords complain about bad tenants that do not pay rents and the difficulty of getting rid of them.
The Consumers’ Association of Penang (CAP) has received countless complaints since 2008 via anonymous letters, telephone calls, letters of complaint and even read in our mainstream media, letters written by hapless flat and condominium owners, highlighting the tactics used by developers’ agents/contractors to force new owners to renovate their units at exorbitant charges.
The Consumers Association of Penang (CAP) refers to the article “Far from being rotten” ( NST – Property, June 23), by Datuk Eddy Chen, the immediate past president of REHDA, on why there is no need to change the present Sell-then -Build (STB) system. His argument is that abandoned projects form only a small portion of the millions of housing units successfully built, as such there is not need to change to the Build-Then-Sell (BTS) system or its 10:90 variant.