Khir Toyo on Property Matters
ARE YOU REALLY SERIOUS ABOUT IT - THAT IS TO INSIST THAT DEVELOPERS HAVE TO DEPOSIT 40% PROJECT COST IN A BANK AS PERFORMANCE BOND, OR ARE YOU CAKAP SIA SIA SAHAJA?
To ensure that housing projects are not abandoned, Selangor wants developers to put 40% of the overall development cost in a bank before land conversion is carried out.
Mentri Besar Datuk Seri Dr Mohamad Khir Toyo said the 40% was based on past situations where projects were abandoned with 30% to 40% yet to be completed.
He said the requirement was to protect the interest of potential house and commercial property buyers.
“Forty percent is a justifiable amount. The requirement is based on the 36 abandoned projects in the state which had been left idle with 30 to 40% yet to be completed."
“With the 40% in the financial institution, it would act as a surety to ensure that the project is completed."
“With this mechanism we feel it would give birth to developers with excellence,” he said.
He said the state would also put a stop to the unscrupulous method of developers who used the buyer’s initial and progress payments to push through a housing project to rake in the profits upon completion.
Dear MB, its a fantastic idea!!!! But do you & your EXCO members have the balls to implement that requirement or you are just poking pointers at some developers so that they come running to you and your EXCOs to negotiate at the mamak stall?
I'm sure REDHA will be horning loud in the next few days and Ong Kah Ting will speak in tongue soon. lets wait for more!!!!!
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