The National House Buyers Association (HBA) has slammed the government’s decision to reduce the moratorium period on the resale of 1Malaysia People’s Housing (PR1MA) homes from ten to five years, saying that the move defeats the programme’s objective.
National House Buyers Association (HBA) secretary-general Chang Kim Loong said the shorter moratorium period encourages buyers to flip the property, which could lead to speculative activities, reported The Sun Daily.
“They were supposed to be ‘locked-in’ to discourage flipping. The bottom line was to endure that they sincerely keep ownership rather than make money by flipping. What has become of PR1MA objectives?” he said.
With the new rule, Chang proposed for the government to consider starting the five-year moratorium from the date of vacant possession although he believes that this could still lead to speculation. This is because owners can still sell their affordable homes within 24 months after vacant possession, assuming a construction period of 36 months.
Prime Minister Datuk Seri Najib Abdul Razak yesterday said the reduction in the moratorium period is part of the government’s effort to make PR1MA houses more attractive to the masses.
Najib also announced a hike in the combined income eligibility to acquire homes from RM10,000 to RM15,000.
While the increase in combined income eligibility is appropriate, considering the hike in cost of living, Chang underscored that the houses allocated to buyers should be suited to their income levels. As such, buyers within the RM15,000 per month (income eligibility) should not be competing with buyers earning only RM5,000 per month, he said.
Moreover, PR1MA home owners should only be allowed to sell their property to eligible buyers – the low- to mid-income earners, who are first-time buyers, he said.
Image sourced from Malaysia Chronicle
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
