Here's a simple breakdown of what's going on and what you need to know about the Government's latest move to aid those who wish to own their own property.
By Michelle Brohier
The Government programme MyHome seeks to allow low income groups to purchase property under the MyHome (Private Affordable Ownership Housing Scheme) programme. The National Housing Council (NHC) has agreed to allocate RM300 million to this end, with the aim to aid both house buyers and developers alike.
Here’s a simple breakdown of what’s going on and what you need to know about the Government’s latest move to aid those who wish to own their own property.
How does this work?
If the price of a low-cost house is fixed at RM40,000 a unit by a state government, the developers have to sell them at RM70,000 each. This will allow qualified applicants to buy it at RM40,000 while the balance of RM30,000 will be paid by the central government. This will make it easier to apply for those under the programme to apply for a bank loan.
What are the requirements to apply for the programme?
Those eligible are those from the lower income group, earning under RM3,000 a month and are first-time house buyers. Those who opt for this programme are not allowed to sell the unit within 10 years of purchase. Developers could apply for the programme to a special committee under the Housing and Local Government Ministry.
How will this help the developers too?
The RM300 million will not only help those in the lower income, but the developers too as it money would help absorb the cost of construction.
How’s everyone’s reaction so far?
Many are positive about the programme as this will help those in the lower income finally own an asset. But both those in the lower income and even the developers agree that there needs to be better transparency when it comes to the handling of the funds related to the programme.
When will this programme begin?
There’s no official date for this yet but the Urban Well-being, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said the MyHome Exchange is expected to be launched in three to four months’ time and it would act as a one-stop information centre on housing projects.
While the announcement of this programme seems promising, we can only tell in time whether or not the MyHome programme will indeed help those in the lower income category. What say you?
This was brought you by Michelle Borhier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.