Everyone should eventually own a home they can call their own because it’s very stressful to retire and no longer have a fixed income, yet still have to pay fixed rental every month.
The government has extended much assistance to B40 households in regard to owning a house. B40 households refer to those earning a median income of RM3,000 per month.
A deputy minister even appealed to banks to give more leeway to B40 households. After all this assistance, it is hoped the more B40 households will own a home of their own.
But what about M40 households then, those earning a median income of RM6,275 per month?
In an article in edgeprop.my, Housing and Local Government Minister Zuraida Kamaruddin said the ministry was looking for ways to help this group as well own affordable homes.
She added that the ministry had collaborated with several relevant agencies during the drafting process. It would be great if the Malaysian public was privy as to which “relevant agencies” these were.
Moreover, she said the M40 group is divided into two; the top and bottom.
The top category is made up of families with an average household income of between RM5,000 and RM10,000 while the bottom half is made up of those with an average income of between RM3,000 and RM5,000.
The plan being hatched right now for M40 households is expected to be completed in May.
It is hoped the ministry has also spoken to selected M40 households to understand their needs, the type of housing they prefer and the reasons why they still do not own a home.
It is beneficial to understand if this is because they are unable to afford the downpayment or have had their loan applications rejected.
All too often, buyers try to purchase a property which is very near to their approval limit. This is one major reason why their loan applications get rejected.
The household income of those in the M40 group also suggests that they have more disposable income than those in the B40 group.
This is a double-edged sword actually as they could have spent that extra money or they could have invested it.
We now wait with excitement for the announcement for the M40 group in May.
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.