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Govt will study Selangor housing plan, says Ong
The Sun 13/4/2004

PONTIAN: The federal government will study the Selangor government's plan to sell low cost houses to all groups, including the rich, Housing and Local Government Minister Datuk Seri Ong Ka Ting said yesterday.

He said his ministry will do a 'thorough study of the plan, which was announced by Mentri Besar Datuk Seri Dr Mohamad Khir Toyo on Sunday.

"I'll look into the details of the plan because the federal government has a policy on low cost house ownership," he told reporters after giving cash assistance to poor families in Pekan Nanas.

Under the federal government's policy, only those who cannot afford to buy high or medium-cost houses will be allowed to own low-cost homes.

State governments have their own policies on low-cost house construction and ownership but those policies must not contradict the federal government's rules.

Ong said it is the federal government's plan to distribute low-cost houses directly to low- income earners to enable them to have homes of their own.

"If rich people buy low-cost houses, it will be very glaring don't see the logic," he said.

"If rich people buy the houses and rent them out to the poor, they will want to make a profit, so we need to be careful."

Khir had said the Selangor government will allow the rich to buy low-cost houses and rent them out to the poor to help housing developers reduce losses as there is an overhang of 100,000 units in the state.

Under the plan, the state government will lift the curb on the purchase of low-cost houses "to allow middle- and high-income v earners to own them and rent" them out to people who cannot afford them. Mustaza Mohamad, the chairman of the Real Estate and lousing Developers Association of Selangor, welcomed Khir's proposal.

"He is creating new demand for developers, and can help people in transit. There is a glut of low-cost housing because people don't want the stigma of staying in a low-cost house," Mustaza said.

"However; there is a market for people in transit - those who want to stay in a low-cost house for a short time until they can afford a better place."


State urged to relax rules for buying low-cost houses

PETALING JAYA: The Selangor and Federal Territory Consumers Association pro posed yesterday that the rules for buying low-cost houses in Selangor be relaxed.

"Right now, many poor people do not have a chance to buy low-cost houses because the conditions are too strict," said its president, Mohd Yusof Abdul Rahman.

The conditions include a stipulation that the buyer must be Selangor-born, have a family and earn less than RMl, 500 a month.
He suggested that eligibility to buy such houses be open to all Malaysians, including those who are unmarried, and that the ceil in household income be raised.

House Buyers Association secretary Chang Kim Loong suggested that the ceiling be raised so that those earning between RM2, 000 and RM2, 500 a month can buy them.

Alternatively; the state government can buy the houses and rent them out.

He said the large number of low-cost units should also be considered. If there continues to be no demand for them, the state should do away with meeting a quota so that developers can save costs.

Selangor DAP organizing secretary John Chung, who said the state government's plan contradicts the purpose of low-cost housing, urged it to examine the reasons behind the poor sales of low-cost houses.

He said the price range of RM35,000 to RM42,000 a unit is too high for, the very poor.

 

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