PETALING JAYA: Controls should be put in place to ensure that affordable housing projects benefit the B40 group instead of being purchased directly or through proxies by rich individuals and speculators.
Proof of income should be made a standard requirement when first-time buyers purchase houses directly from a developer, as imposed by state governments through their agencies such as the housing board. This should be done even for the secondary market, said National Housing Buyers Association (HBA) secretary-general Datuk Chang Kim Loong.
Chang was expressing his thoughts on PropertyGuru DataSense general manager Joe Thor’s recent comments that at least 30% of buyers in the sub-sale market for low and medium-cost homes were investors, as were buyers in the auction market.
Thor said: “Data from PropertyGuru shows the value of low to medium-cost homes would have appreciated by 220% to 230% about 35 years after the first sale.”
Thor added that such homes usually enjoy a higher price appreciation because they are subsidised by the government.
“The government imposes a moratorium on the sale of subsidised housing, but it is usually only for five or 10 years. After that, the value rises, sometimes by as much as 95% for a 20-year-old house.”
Chang said with his suggestion to put controls in place, the primary buyer cannot immediately profit from selling his property and such properties will always be in circulation among the B40 group.
However, he said one drawback is that it may discourage banks from giving loans as the chances of auctioning such properties to eligible B40 income groups would be much lower.
“The respective state or federal agencies in charge of low-cost housing should consider purchasing the property at the outstanding loan amount and resell it to others in the B40 group.
“This way, the sanctity of having low-cost housing for our low-income earners is preserved. But the question is whether the federal and state agencies have the political will to implement it,” he said.
Malaysian Institute of Estate Agents president Chan Ai Cheng said there should be strict checks on eligibility at the point of application and before loan disbursement.
A heavy penalty should also be imposed on those caught abusing the system and that goes for those who use “proxies” to purchase properties meant for the B40 group.
“It is very tempting when projects are located in strategic areas and at such good prices. Investors will be tempted to get their hands on such units but they must (be mindful of) the purpose of these affordable housing schemes.
“Such properties are not for investors. They are for first-time home buyers to live in. Some affordable housing schemes allow for second-time home buyers as well. This is ideal for those upgrading from their first affordable housing unit to a bigger property as their family grows,” she said.
However, she cautioned that buyers of affordable houses need to realise that this is their first home.
“Once they own one, they are no longer first-time home buyers and as such, they can no longer purchase another affordable housing unit under most schemes, or enjoy first-time home buyers incentives.
“So, they have to make a careful decision when purchasing a property and an even more careful decision when selling after the five-year moratorium.”
Chan said property speculators are usually not in the secondary market for this category of properties but are active in strategically located projects.
She said speculation starts at the point of purchasing an affordable housing unit where a proxy is used and the abuse takes place.
