Monday 24 June 2013

Buying Iskandar Properties - The Risks

With all the news on numerous Singaporeans buying homes in Iskandar, one would have thought that the past reputation of uncompleted homes, abandoned projects or delays in completion haunting Malaysia is gone.

But it appears not to be.

Just recently, a mixed development project consisting of hotel, shopping mall and residential units, minutes away from the Causeway found itself in the limelight after irate buyers complained of delays to the press.

Buyers say that they were given conflicting information on the completion dates of the project.

Here's what the developer said – the 80 per cent completion rate cited in 2011 referred to the lower floors and that "every floor has a different completion date". Just like in Singapore, projects are given a five-year grace period for completion.

"But projects first get three years unless you apply for an extension, which we did not plan for. If we had applied for the extension to five years, this year would have been the fifth year, and we'd be in time to complete the project."

The firm said the sales and purchase agreement begins only on the date of purchase, not the day which construction started. That means every buyer's three-year duration started at a different date. It also means if the project is completed within three years of the sales and purchase agreement, there is little disgruntled buyers can do.

Ouch! So the completion date of the project is a moving target. Hope the buyers get their keys soon. And one thing to note – this developer is listed on the Malaysia stock exchange.


We hope that buyers of projects in Iskandar check the fine print before signing.

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