Show me an example Shelter Over The Head: December 2011
Apa kesan pembukaan SKVE seksyen 2 pada prospek pembangunan Kuala Langat?

Thursday 8 December 2011

Buying new houses in Klang, Shah Alam, Kuala Langat Selangor - The basic protection




Common question by prospective house buyer of new housing projects at Klang / Shah Alam / Kuala Langat Selangor under malay reserved status. 

What's the basic protection for house buyer of developer's project? The basic protection covers and includes all types of housing developer's projects under the purview of Housing Development Act 1966.

Before a housing development can start, the builders have to submit plans to the local authority and are subjected to the ruling under Housing Developer ( Control & Licensing ) Acts 1966. There are laws in place.

Under the HDA, architects and engineers are responsible for the building / houses while it is under construction. After all the houses in the new housing project are completed, these professional, that is the engineer or architect, will issue a certificate stating the building / houses are built according to the guidelines. There are industry professionals involved.

Until a vacant possession of the property is given ( supposedly to only happen after completion of construction according to the laws and guidelines ), the developers still maintain responsibility for the overall development. Developers are liable for the defects of the houses for a period of 24 months ( defect liability period ) after vacant possession is taken on a residential / landed property. There is warranty in place.

After vacant possession is given, monitoring of the houses against break-in and vandalism will be the responsibility of the house owner. Once the warranty period is over, the maintenance of the building / houses / property become the owner's responsibility.






Saturday 3 December 2011

New affordable housing project around Klang Valley / Selangor - Effect by economic downturn





What will possibly happen to the development of new single and double storey terrace houses in Klang Valley / Selangor when we have an economic slowdown?

1. There won't be a decrease in the real demand. In this category of houses, we are not experiencing  a situation of supply more than the demand.

2. People are not buying, more because the price is beyond what they can afford than other reasons.

3. In the market at this point of time, there is no oversupply or glut i.e houses ready and built but not taken up or occupied. This is not happening to the market for this category of houses.

4. Price in this category MUST come down if there is  a high inventory / "delivered" supply in the form of new houses having been built in the market. Price will come down if developers are willing to accept  a lower margin because they need the cash flow. But is this the situation in this category of market / houses? If the developers are not facing with this situation, can house buyers expect to enjoy good price decrease for " rumah baru teres satu dan dua tingkat di sekitaran Klang Valley / Selangor "?

5. In free market economy, price do not have to come down when the cost come down just like price will decrease even though the cost never decrease when there is decreased demand and increased supply in the form inventory.

6. Development of new housing project under single and double storey terrace house for middle income and lower income group is kind of safe from the economic downturn due to above-mentioned factors. The developers will be safe if they build to meet demand and not to create demand.





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