Normal practice that works are carried out during konvenju – MDA
Wednesday, November 19th, 2014
The Malta Developers Association notes that an issue has arisen in the media about works being carried out on a recently developed property, in particular as to who is responsible for such works.
The MDA wishes to point out that it is normal practice for developers to allow purchasers to carry out additional works once a promise of sale (konvenju) has been signed.
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MDA welcomes Budget with satisfaction
Tuesday, November 18th, 2014
The Malta Developers Association welcomes with satisfaction the measures announced by Government in the Budget Speech, which confirm that Government is giving the property market its due importance, while assuring a level playing field in this sector as well, through efforts aimed at avoiding abuse in taxation.
The measures announced include two that were among the proposals made by the MDA to Government, viz: Read more »
MDA ON NEW HOUSING AUTHORITY RENTAL SCHEME
The Malta Developers Association (MDA) refers to the new rental scheme launched by the Housing Authority through which property owners can rent their premises to the authority, which will then sublease it to tenants at subsidised rates.
The idea of using existing vacant building stock for rents to persons who qualify for social assistance in housing originated from one of the many suggestions made to Government before the Budget by the MDA, which had also suggested that a fixed rent for a predetermined period could be incentivised by a reduction in income tax from rents, as actually indicated in the announced scheme.
However, instead of allowing for a free rental market with tenants dealing directly with owners and then registering the lease when applying for subsidy, the scheme has become one where owners lease to the Housing Authority, which in turn sub-leases to the tenants.
This is in fact a major obstacle for the success of the scheme. Owners would normally seek to know who the prospective tenants are before they enter into a rental agreement and should not be obliged to accept anyone who obtains a sub-lease from the Housing Authority.
This would have avoided a lot of expensive bureaucracy and expenses on the part of the Authority, which will now be responsible for potential damages made to properties by its sub-lease holders.
With the announced scheme the property owners concerned will lose all control of their property and what happens to it, much as what used to happen in the past in the case of requisition orders.
It is a pity that such a good initiative has been smothered at its inception in this way rather than being allowed to flourish, something that would not have happened had the Housing Authority consulted interested stakeholders before finalising the scheme.