In a statement today, the association said Putrajaya had announced in February 2012 the mandatory imposition of the BTS 10:90 concept from 2015, adding the government had numerous deliberations, labs, discussions, and meetings with all stakeholders.
“It even had recommendations from academia before approving the concept.”
The association now wonders whether Putrajaya had a rethink since then and was now taking a retrogressive step.
“There’s no mention in Budget 2017 of the BTS 10:90 concept,” said the HBA.
“Then Housing Minister Chor Chee Heung announced that BTS 10:90 will be mandatory by 2015.”
It hoped that present Housing Minister Noh Omar will make the BTS 10:90 a reality.
“This should be done at least through a gradual phase under the Affordable Homes category,” HBA said.
The BTS 10:90 system was recorded in the Parliament Hansard in 2013.
Under the BTS 10:90 system, house buyers only need to fork out the initial 10 per cent when booking a house. They do not need to make any further payments until vacant possession of the property. Then, the balance 90 per cent becomes due.
On paper, it’s a more orderly concept to rein in errant housing developers.
“The BTS 10:90 is a far safer mode of home delivery system,” the HBA said. “The government should compel the housing industry to adopt the system.”
“We believe it will drastically, if not totally, eliminate cases of housing projects being abandoned.”
Under the Affordable Home, Budget 2017 states the government will build more houses under PR1MA, SPNB, PPA1M and PPR.
Budget 2017 also provides for exemption of stamping fees on transfer instruments and loan facilities for first time buyers for houses not exceeding RM300,000; the levy of stamping duties will be four per cent on properties in excess of RM1 million; and first time house buyers will enjoy a maximum special loan scheme of between 90 per cent and 100 per cent at participating banks.
There will be 10,000 housing units in urban areas for rental to eligible youths with permanent jobs. This will include young graduates entering the labour market.