BUMIPUTRA developer Jejakgaya Corp Sdn Bhd (JGC) has come out with a scheme that is aligned to the Government's vision of build first, sell later concept.
JGC executive director Abu Backer Sidek Mohamad Zan announced its buy first, pay later scheme recently at the site of its Kelana Sentral Apartment project in Kelana Jaya.
Our chairman has challenged us to come up with a workable proposition based on the Government's call. So we had to think out of the box to come out with the scheme, he said.
The group's strategy is based on a homeowner protection policy whereby the buyer doesn't pay the usual minimum 10% deposit and no progress payment is needed.
Under the scheme, the booking fee is placed in the client's fixed deposit account with the banker with a full refundable clause inclusive of interest earned upon cancellation of booking and qualified buyers would even get 100% financing.
The concept is designed to protect the house buyer as the developer will only get paid upon receipt of the certificate of fitness (CF) and after the keys are handed over to the buyer.
JGC is a subsidiary of Ally Consolidated Holding Sdn Bhd, an investment holding company which has been venturing into various businesses including motor vehicles, transportation, property, construction, trading, parking management, restaurant and catering services.
The Ally group ventured into property after having acquired substantial land bank over the last 20 years. The majority of these properties are located in high growth urban centre in peninsular Malaysia.
The properties range from 0.2ha to about 12ha. The units of the Kelana Sentral Apartment project are priced from RM139,999. At the same function, the company also launched Kemensah Heights bungalows and semi-detached houses, based on the same fair price concept.
Backer said the strategy of buy first, pay later concept was a culmination of marketing paradigm shifts and a cooperation between like-minded corporations.
The traditional financial plans were focused on developers. Now we have to place buyers first whilst ensuring economic viability, he said.
Backer said the company found it hard to get a financial partner for the project. We want a partner who could add value to our proposition while having a proven integrity and ability to deliver the product to customers, he said.
For this project, the group was backed by Bank Muamalat and Public Bank which were confident that the group's business plan and fair pricing would enable the project to hit high sales volume, he added.
Backer said the main attraction of the buy first, pay later concept hinged on one key feature.
The key feature of this financial package and home ownership scheme is its buyer protection plan. This scheme offers people an opportunity to buy their dream homes minus the risk of project abandonment and financially constraining progress payments piled on top of the other living costs, like rental.
In short, the scheme enables buyers to purchase their dream home without locking in their finances until they receive their CF and take possession of their home, he said.
JGC was set up in March 1997 to undertake the Ally group's first project comprising double-storey linked houses in Kemaman, Terengganu, under the concept of build and sell.
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