RM220k ceiling for full loans stays
KUALA LUMPUR: The Government is sticking to its decision to allow 100% loans only for houses priced RM220,000 and below.
Housing and Local Government Minister Datuk Chor Chee Heung said the Government had last month rejected the request by housing developers for such loans to be extended to more expensive houses.
He said the Real Estate and Housing Developers Association had proposed that the ceiling for the 100% loans be increased to houses costing RM350,000 to benefit a larger group of buyers.
“However, the Prime Minister is of the view that house buyers may have to bear a bigger financial burden if they are allowed to buy more expensive homes,” he said at the completion ceremony of Verve Suites Vibe Tower here yesterday.
Verve Suites is a luxury serviced apartments project developed by Bukit Kiara Properties.
Prime Minister Datuk Seri Najib Tun Razak had proposed in the 2011 Budget that first-time house buyers with a household income of less than RM3,000 be allowed to obtain a 100% loan to buy houses costing RM220,000 or less.
On another matter, Chor urged house buyers to be extra careful when planning to buy property.
“It has been brought to my attention that some developers, who have been blacklisted and barred from applying for a developing licence, have been conning house buyers into paying them 10% down payment for new housing projects.
“However, these projects cannot take off because the developers do not have the required licences,” he said.
Chor advised house buyers to check the background of the developer before making a down payment.
On the Housing Development (Control and Licensing) Act 1966, Chor said the ministry would table an amendment in Parliament by June to allow the authorities to prosecute developers who abandon projects.
More property news:
|