Some time ago, Hisham and I have this idea to tackle the ever soaring of property prices; container homes - they cost less than conventional constructions, reusing materials, less time for construction. Its not exactly a new idea, its just that the reception of our current community and adaptability (tho there are actually few in malaysia, while its widely being used as site office as well).
I tried to step it up a notch; to take down the properties cost, eliminate the bank and developers. Why? because developer act as a medium between architects and end users (purchaser). They produce (buy lands, marketing, hire architects, contractors etc) the product (properties) via architects (design, working drawing, submissions and approval etc) and sell it to the purchasers. Along the way they will work along with the bank (its too tedious to write about; those in the banking and construction industry knows better).
Imagine if you, purchaser, just engage directly with the architects (and fellow consultants) and contractor. you dont need to go thru the developer. That's where this fideicomiso comes in; the architect himself takes on the risk of development; residents collect their assets and provide them to the architect, who buys the land, funds the project and oversees the design/construction.
Now, here's the setback. Simplifying from Housing Development Acts, for development of dwelling properties of 4 units and above, it is categorized as housing, which in effect must be develop by a licensed developer. Now, if potential purchaser (note: end users, not people making properties to sell them) grouped up among themselves and creating an entity to become a developer, it might do the trick (as per fideicomiso). but here's the catch; to be a licensed developer you will need to register with RM 1 million fee. How many purchaser do you need to gang up with to come up with such fund?
But, for a property of built up area below than 3000 sq.ft, you can easily engage registered draft-person to built a bungalow for you (of course, you need a land which wouldnt comes cheap).
I tried to play along this idea, looking for loopholes of our building by laws and local authorities; to provide a reasonable price for really serious purchaser (Again; meaning to live in, not selling - I might go around this by inserting it in the S&P agreement). So far, i'm targeting to cut the price by;
- Expedite construction via IBS (container house comes with this) - faster completion lesser cost (labor, material etc)
- Purchaser as developer
- Small built-ups - engage registered draft-person instead of architects (designs can be completed by a so-called design consultant, or the client themselves)
There's this view where instead of buying properties in the city, make do with renting one, and invest property on the outskirt instead. It depends. When you retire, do you want to live in a kampung-like environment, or living on the upper-east side?
I'm just blabbering here aloud. gesundheit
