When developers do not complete their projects, it is a very bad thing for the buyers. I have a few friends who suffered from such a fate and it has scarred them forever with regards to buying a property. After a few years and the developer could not complete the projects, the buyers do not get keys to their homes, unable to stay in their own homes and still have to keep paying for them as well as renting the current place they are staying. This is also one key reason why people without a property may continue to live in poverty because they have to keep paying and paying and paying even for their next generations and so on simply because they do not actually own any property they could live in and have to rent.
I could not believe it when I read the news about 88 developers in Johor being fined for not completing the state’s affordable housing projects, ‘Rumah Mampu Biaya Johor’ (RMBJ). Article in nst.com.my Elaborating further on these property developers, State Housing, Communications and Multimedia Committee chairman Dzulkefly Ahmad said 41 of the developers were based in Johor Baru, followed by 13 in Kulai, eight (Segamat), seven (Batu Pahat), six (Kluang), five (Kota Tinggi), four (Muar) and two each in Tangkak and Pontian.
He explained further, “Previously (under the previous government) the penalty was between RM20,000 and RM60,000 per unit, but based on the new policy approved last year, the new charge is RM40,000 per unit for a lump-sum payment and RM60,000 per unit if paid in installments (four times) over two years.” Article in nst.com.my
Frankly, I would have preferred the explanation to be on whether these houses which were not completed will now be completed and if not by the errant developers, who will take over. It would also be great if the state has a process / mechanism in place to handle these because we do not want the rakyat to be the one suffering due to these circumstances. It’s also great if the reasons why they did not complete are also made known.
Was it because those homes were NOT in demand, thus they chose to abandon instead of building? Was it because the cost of construction is just much higher than the selling price? Are the fines enough for the next developer to take over and complete building it? Learning from all these allows everyone to note and every other states to improve as well. Failure is not the end, it’s just another new learning. Failure to learn however is truly the final failure. Happy understanding.
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