Penang to curb profiteering from cheaper homes
The state government is planning a new mechanism to prevent low-cost (LC) and low medium-cost (LMC) unit owners from profiting from the sales of units.
Under the new guidelines, LC and LMC unit owners will have to sell their units to the government at a mutually acceptable price.
State Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo said this was to prevent the owners from excessive profiteering from the sales of their units.
“Owners must adhere to the original intention where the units were for the low-income groups and it’s perfectly alright if they were moving to higher end units.
“However, they were not suppose to sell their units for a ‘durian runtuh’ (huge windfall) as it defeats the purpose of them buying the units in the first place.
“There were cases where a RM42,000 unit was sold for RM300,000 due to speculation,” said Jagdeep during his winding-up speech at the state assembly.
Thus, Jagdeep said the state would buy over the units of those who were planning to sell to be sold to others in the waiting list.
“Through this there would be a continuous supply of LC and LMC units and the state would not have to build new units,” he said, adding that a task force had been set up to look into the mechanism and its enforcement.
On the issue of the urban rejuvenation plan for the Rifle Range flats, Jagdeep said it has been put on hold until the legal aspects are worked out.
“In Singapore, the Urban Rejuvenation Authority has wide powers where a building could be demolished if majority of the unit holders agreed to the move.
“We don’t have such laws here and we are awaiting the feedback from the federal government on the issue where the Strata Titles Act have to be amended,” he said.
Source: TheStar.com.my
I am a pensioner aged 62.Am I eligible for low cost housing on Penang Island? Thank you,
Yvonne
@Yvonne
Dear Yvonne, there are certain guidelines that you will need to meet in order to be a qualifying buyer. But it is advisable that you go to the local authorities and inquiry about that. They are located at Komtar. Best of luck.
This is a stupid policy which is grossly unfair. Many low cost home owners who have bettered their own prospect in lives with hard work ,would need the money to upgrade to a better home. the fact that they hold on to the property for more than 10 years (under the low costs restriction) shows that they are genuine buyers and not mere speculators. They ave satisfied the test and therefore should be allowed to reap the fruits of their labour. This is stupid policy is an outright denial of capital gains rightfully earned by the owner. The state should allocate funds of its own to provide low cost homes for the people instead of using this method to cut corners at the expense of the people.
Fully agreed with you.
yeah now u know.
our politician,
today think, tomorrow say, but never happens
i support the goverment idea, tis way they wont increase the property price 10 times more of the original and burden the low income group if u want profit must go n do other business .
@Sally,
Mai toolan. Calm down. Jagdeep Singh Deo said this was to prevent the owners from “”EXCESSIVE”” profiteering from the sales of their units, and said that “There were cases where a RM42,000 unit was sold for RM300,000 due to SPECULATION”.
I believe the state will still allow you to “reap the fruits of your labour”, and it won’t be an OUTRIGHT denial of capital gains rightfully earned by the owner. So as you know, RM42,000 units are sold below cost, meaning someone is subsidizing the unit. The cost would probably be around RM 100,000, which means you already “reap the fruits” of RM58k that did not come from your own labour. So if you sell it after 10 years for RM300k, they might ask you to pay back the fruits you reaped 10 years ago (RM58k) without your own labour + inflation, and you get to pocket only the balance. Does that still sound like an “OUTRIGHT denial of capital gains rightfully earned”?????…:)
@BigSausage
Well said!
@Sally
I did not own any LC or LMC but agreed with what you said. Previous govt did not do things that needed to do. Current govt pulak over-do things that not needed to do. Sigh.
YES, The state should allocate funds of its own to provide low cost homes for the people instead of using this method to cut corners at the expense of the people.
Another shit is RPGT 5% even if your property was bought 18 years ago (said in 2001) and sell in 2019.