The Sun: Go For Subsale Homes, Buyers Advised

The Housing and Local Government Ministry website showed in a search that there are 198 abandoned housing projects which impacted thousands of home buyers, therefore property buyers have been advised to go for subsale homes instead of new development projects. 

Ian states that the standard procedure for new development projects works like this: once a housing loan is approved, the bank disburses significant percentages of it to the developer according to different “checkpoints”, for example the signing of the Sale & Purchase Agreement, completion of the foundation, wiring, sewerage and so on. The bank may have disbursed a good 60-70% of the total loan amount to the developer before access roads are even constructed, so if the project gets abandoned at this stage the home buyer will be left with a massive debt and no property. 

Ian agrees with the advice to future property buyers to always buy from reputable developers, adding that it is most important that buyers get what they have paid for especially if it will be their primary residence; purchasing a property is a massive financial commitment and the buyer’s finances can be irreparably damaged from a single mistake. 

This article can be found here.