Not so low-cost after all
The Sun 17/11/2005 By Regina William

PENANG: Buying a low-cost or low-medium cost unit in Penang can be an expensive affair these days. Buyers of a low-cost housing project in Batu Ferringhi here who paid RM42,000 for the three-bedroom unit found this out the hard way.

They were offered a renovation package costing RM16,000 by the developer for laying of tiles and grilles to be fixed to their units.

A buyer, who refused to be named, said they were told that if they did not opt for the package, they would not be allowed to carry out their own renovations on their units.

Buyers at the project were also offered car park lots at RM5,000 each, or they would not be entitled to park at the designated lots.

"This is not fair. How are we to come up with RM16,000 for renovations? If you add the RM5,000, it is a hefty amount.

"Since I am only earning RM1,000 a month, how can I afford to pay for this?" he asked.

"The developer offered a financial package for those who opted to take the renovation loan, but I think I would not want to pay so much and be burdened with a loan as well," he added.

A check with buyers of another low-cost housing project revealed that those who did not want to take up the renovation package offered by the developer had to pay a "deposit" to the developer which would be refunded after the renovations were completed.

Buyers of a low-medium cost housing project in Jelutong were also "forced' to take up the renovation package offered by the developer, or opt not to carry out any renovations.

One of the buyers, a building contractor himself was forced to take up the renovation offer, since the buyers are not allowed to hire their own contractors for the project.

"I paid RM72,500 for the unit, but the renovation package cost RM14,500 and car park lot another RM12,000, totalling RM99,000 for an intermediate unit while others have to pay RM118,000 for the corner unit.

"This is unfair as the renovation package costing nearly RM18,000 is not affordable by many.

"Most housebuyers would need to carry out renovations to their units and this arm-twisting tactic should not be allowed," he added.

Meanwhile housing, culture, arts and heritage committee chairman Syed Ameruddin Syed Ahmad said the state government is aware of the situation but had his own explanation for the conditions imposed by the developers.

"I used to get annoyed with the developers for doing so, but after going around some housing projects, I understand their rational for these conditions.

"Some of the housebuyers hire their own contractors who are not skilled.

"These contractors hack walls and floors and due to their sloppy work, cause problems to other unit owners.

"I have seen many cases where floors which were hacked especially bathrooms and there was no water proofing is done, the water seeps to the unit below.

"Hence, the affected unit owner usually goes after the developer to have the repair done if the warranty period of one year is still on," Syed Ameruddin said.

He added that the unit owner carrying out the renovations even refused to allow the developer to check their units to pinpoint the source of the leaks.

"I would like to advise those who want to carry out their own renovations, to wait until the one year warranty period is over before they carry out their renovations.

"As for the car park lots, for low cost units, the developer must provide 100 parking lots for every 500 units, and they can only sell any extra lots over and above that.

"I would like to urge housebuyers who are unhappy with the conditions imposed by the developers to come forward and tell us about it," he added.