Extend facility to all buyers
14/02/2006 NST
 

WE applaud the new loan scheme to exempt civil servants who are victims of abandoned housing projects from having to service the interest on their first loan and having regular "pay deductions" against their loan, to ease their financial burden.

The House Buyers Association (HBA) has been advocating such a stance for victims of abandoned housing projects — not just civil servants but all affected house buyers who had obtained loans from financial institutions and banks.

It is also no fault of house buyers when the houses they purchased are left uncompleted or abandoned by developers.

Buyers are left in the lurch; they are financially drained and do not have a shelter to call a home.

Bear in mind that buying a home is usually the single biggest investment that a person undertakes.

What has really failed is the present delivery system — which is a system of payments whereby the buyers pay progressively according to the construction stage.

The system needs to change from the present progressive payment basis to one of paying for completed property.

The HBA has made written recommendations to the Ministry of Housing and Local Government to adopt the improvised build-then-sell system, either the "deferred payment basis" or the 10:90 concept, whereby the buyers pay 10 per cent deposit and the balance of 90 per cent upon delivery of vacant possession with a certificate of fitness for occupation, and ownership papers.

This way, housebuyers will be isolated from risk and it will help eradicate the problem of abandoned housing projects. At present, the ministry does not have solutions for abandoned housing projects.

CHANG KIM LOONG,

National House Buyers Association