Developers need more incentives to take up buy 'n' sell concept
20/01/2007 The Star By Elizabeth Looi

KAJANG: More incentives should be given to property developers who are willing to take up the build and sell concept.

House Buyers Association advisor Datuk Seri Yuen Yuet Leng said although the existing incentives were encouraging, the Government should also consider throwing in more incentives to attract more developers to start practising the concept.

At present, only several well-established developers are practising the concept. Yuen said currently developers who were willing to adopt the 10:90 concept would be able to enjoy fast approvals of their project, exempted from having to pay RM200,000 deposit as well as the obligation of building low-cost units.

The 10-:90 concept allows buyers to pay only 10% when they first buy the house and settle the balance when their houses are completely built.

Yuen said among other incentives that the Government should consider included lower premiums for land conversion and tax relief incentives.

"Developers should be allowed lower premiums although some land offices are offering 15% discount to those who can pay as soon as possible.

"Tax relief incentives can also be granted to projects that adopt the 10:90 concept, waiving stamp duties and allowing direct hiring of foreign workers without having to go through agents," he said.

Yuen also said the concept would protect house buyers from falling prey to abandoned housing projects.

"The public deserves a more effective system of delivery, quality control and consumer protection," he said at the launch of Taman Langat Ceria at Hulu Langat here today.