All loan-related issues will be discussed with financial institutions and Bank Negara Malaysia first before the proposal to amend the Housing Development (Control and Licencing) Act 1966 (Act 118), which provides the build-then-sell (BTS) concept, is tabled to the Cabinet.
Housing and Local Government Minister Chor Chee Heung said the discussions were vital because the concept was something new that would involve the financiers.
“Basically, we will get the approval from the Cabinet to enable the concept to be implemented in 2015.
“However, the decision will depend on several factors, including the preparedness of the financial institutions, like banks, to offer loans to house buyers according to the new concept,” he told reporters after launching the Saffron Semi-D housing project in Puteri Heights here today.
He said although introduced in 2007, the BTS concept had received lukewarm response from the developers and so far, only five housing projects had fully adopted the concept.
“Maybe most financial institutions do not understand the concept of BTS and how the loan should be issued as compared to the sale and purchase system being practised today,” he said.
Under the BTS concept, the buyer will have to pay 10 per cent deposit to purchase a house and need only settle the balance after the house was completed.