Banks should give priority to potential B40 home buyers

The government should help all Malaysians who need a home, to buy a home. While not forcing them to buy immediately, perhaps the government could build homes and set these Malaysians on the path of renting to own instead.

Of course, it could also be via providing them with financial knowledge.

These days, when it comes to properties, there are many concerned ministries involved in helping B40 households own a property – a move that may not be so readily welcomed by the risk officers in banks.

According to Edgeprop.my, Housing and Local Government Minister Datuk Raja Kamarul Bahrin Shah Raja Ahmad advised banks and financial institutions to help the B40 households own a home by giving leeway to applicants.

This is to support the government’s inspiration to prioritise the B40 group in the area of house ownership. He mentioned that banks should also consider the income from their part-time jobs.

He said, “Most financial institutions combine the income of husband and wife to determine whether or not they qualify to take a housing loan, so why not take into account their side income as well?”

He added, “But of course the applicants will have to show evidence of their side income for a reasonable period of six to 12 months to support their applications.”

He was speaking to reporters after checking the development of the “Rumah Idaman Rakyat” housing project by Syarikat Perumahan Negara Berhad (SPNB) at Kampung Santong near Paka.

The project offers 229 units of affordable houses, 70 units of which are single-storey terrace, 60 units of double-storey terrace, 76 units of semi-detached houses and 23 units of shop lots, expected to be fully completed by June 2020.

Raja Kamarul also said that they will monitor the purchase of all SPNB houses to ensure that it only goes to deserving buyers.

He said, “Yes, we have been deluged with complaints about the selection of buyers of SPNB houses and other low-cost houses being based on certain quarters’ whims and fancies.

“We will ensure that it will not happen again under the new government. We want to ensure only those who are qualified, especially first-time buyers, will own the houses.”

This article first appeared in kopiandproperty.com

Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.