Buying a home is a significant investment, and it’s essential to ensure that the developer you choose is reputable and trustworthy. But with the rampant number of developers in Malaysia who have delayed or abandoned housing projects, it’s crucial to be aware of the red flags that indicate a developer may not complete their project. Here are some to look out for.

1. No track record

   Developers with a proven track record of delivering projects on time and within budget are less likely to abandon a project, and it would be wise to choose one of them. However, there is also no issue choosing a developer who has no track record – if you exercise caution and do your research before investing in their project.

2. Shoddy workmanship

   Dig up the developer’s past projects and look for poor quality workmanship. Developers who cut corners and use subpar materials are more likely to leave a project unfinished. Don’t rely only on fancy 3D visualisations but on actual photos of completed projects or a site’s work-in-progress.

3. Overly ambitious project scope

   Review the developer’s proposed project scope and assess whether it’s feasible. If it seems too ambitious or unrealistic for its cost or timeline, it’s a red flag that the developer may abandon the project when they realise they’ve bitten off more than they can chew.

4. Unresolved legal disputes

   If a developer has a history of legal disputes, it’s an indication that they may not follow regulations or adhere to ethical business practices. So, read up and research for news articles involving the developer and assess whether they have a history of non-compliance.

5. Delayed construction timelines

   Developers who consistently delay construction timelines are a red flag. Delays in construction timelines can indicate financial difficulties or poor project management, which may lead to the project’s abandonment.

6. Poor communication

   If a developer fails to provide regular updates or is unresponsive to buyers’ questions and concerns, it’s a sign that they may be disorganised or lack transparency.

   Do Your Due Diligence

   In conclusion, as a potential homebuyer, it’s essential to do your research and be aware of these red flags to weed out dodgy developers. By doing so, you can avoid the financial ruin and stress of being stuck with an unfinished home.

   You can always check out this list of blacklisted developers issued by the Malaysian Ministry of Housing and Local Government.

   And if you ever do end up unlucky as a victim of an abandoned project, here is a guide on what you can do.