Sapp feels build first sell later can avoid problems for housebuyers

Utusan Online 23/05/2004

KOTA KINABALU May 22 - The Sabah Progressive Party (Sapp) feels that the "build first, sell later" concept for houses will be able to solve and avoid many inherent risks and problems affecting housebuyers nationwide.

Its president, Datuk Yong Teck Lee, said Saturday abandoned projects, delayed completion, shoddy workmanship, misrepresentations and weaknesses in the housing industry had given rise to a disproportionate number of housebuyers suffering heavy financial losses and mental anguish.

Yong was commenting on Prime Minister Datuk Seri Abdullah Ahmad Badawi's statement Friday that the government was studying the possibility of making housing developers build houses first before selling them.

Yong said that buying a house should be like buying a car which was worthy to be "on-the-road", while the end-financing for house purchase would be like getting a car loan.

Although the black sheep among the developers were few, the relevant authorities had had a difficult time coming up with lasting solutions which were adequate and satisfactory for housebuyers, he said in a statement here.

He said objections by housing developers to the concept, like holding costs and banking practices, could be overcome by re-formulation of banks' lending practices, legal re-drafting of the sale & purchase agreements and other legalities.

Developers could also be given a fixed time-frame to plan their future developments based on this "build first, sell later" concept, he added.