One house per house­hold

> Ex­plor­ing ways and means to ful­fil the ‘pledge’

The Sun (Malaysia) - - SUNBIZ -

I Nthe Malaysian res­i­den­tial prop­erty scene, af­ford­able hous­ing has made head­lines in the prop­erty sec­tions of many news­pa­pers and on­line real es­tate web­sites. The gov­ern­ment’s in­tent and plan: to help low- and mid­dlein­come earn­ers own a home.

Con­sid­er­ing facts like ris­ing liv­ing costs, low in­come per capita and es­ca­lat­ing house prices, the gov­ern­ment and var­i­ous or­gan­i­sa­tions and de­vel­op­ers have col­lab­o­rated to pro­vide the peo­ple with a wide va­ri­ety of af­ford­able hous­ing schemes and pro­grammes in its “pledge” for ev­ery house­hold to own a home.

Ac­cord­ing to re­ports, be­gin­ning 2014, de­vel­op­ers were in­structed to en­sure their hous­ing devel­op­ment projects in­cluded some 20% low­cost and 20% medium-cost hous­ing units.

This re­sulted in the sprout­ing of af­ford­able hous­ing launches by gov­ern­ment and pri­vate de­vel­op­ers, made avail­able to the peo­ple via schemes like PR1MA, Hi­jau EKo­mu­niti, My­Home, Rumah Mesra Rakyat 1Malaysia and oth­ers.

Over the next few weeks, theSun prop­erty team will ex­plore af­ford­able hous­ing cov­er­ing var­i­ous schemes and el­i­gi­bil­ity re­quire­ments, as well as first-time buyer as­sis­tance pro­grammes for Gen-Y, along with other op­tions as a space to make home of.

SCHEMES AND PRO­GRAMMES FOR LOW- AND MID­DLEIN­COME HOUSE­HOLDS Some of the gov­ern­ment-as­sisted hous­ing schemes and pro­grammes of­fered to medium- and low-in­come earn­ers in­clude: A] Peruma­han Rakyat 1Malaysia oth­er­wise known as PR1MA. This scheme was launched in 2011, pro­vid­ing af­ford­able homes in ur­ban ar­eas to mid­dle-in­come house­holds earn­ing be­tween RM2,500 and RM10,000 per month. In 2014, a Rent-to-Own and 110% fi­nanc­ing scheme was in­tro­duced to fur­ther as­sist house buy­ers of PR1MA projects. Im­por­tant terms and con­di­tions: Must be a Malaysian ci­ti­zen. Aged 21 and above, sin­gle or mar­ried. In­di­vid­ual or com­bined house­hold in­come be­tween RM2,500 and RM10,000. Owns no more than one prop­erty be­tween the in­di­vid­ual and spouse.

B] 1Malaysia Civil Ser­vants Hous­ing (PPA1M) pro­gramme took off in 2013. It was es­tab­lished to help civil ser­vants own a house, par­tic­u­larly in ma­jor cities. Im­por­tant terms and con­di­tions: Ap­pli­cants earn­ing RM10,000 or less work­ing in/near the hous­ing area. Pref­er­ence given to in­di­vid­u­als who do not own a prop­erty. Civil ser­vant in the work­force or re­tiree with a pen­sion. Only one ap­pli­ca­tion can be made. Ap­pli­cant is not de­clared bank­rupt. A 10-year mora­to­rium has to be up­held on ap­proval. Must not al­ready be an owner of gov­ern­ment quar­ters in the same area.

C] In 2014, Skim Peruma­han Mampu Mi­lik Swasta oth­er­wise known as My­Home, was launched to as­sist low-in­come house­holds own a house. The scheme saw the gov­ern­ment pro­vide a RM30,000 sub­sidy to pri­vate de­vel­op­ers for ev­ery hous­ing unit of­fered to first­time buy­ers earn­ing a monthly house­hold in­come of RM3,000 or less. Im­por­tant terms and con­di­tions: Malaysian ci­ti­zen aged 18 years and above. First-time house owner. In­di­vid­ual or house­hold in­come be­tween RM3,000 and RM4,000 for type My­Home 1 and be­tween RM4,000 and RM6,000 for type MyHome2 (re­fer to other cri­te­ria on the of­fi­cial web­site). D] Un­der the Rumah Mesra Rakyat 1Malaysia or RMR1M scheme, the gov­ern­ment will pro­vide a sub­sidy of be­tween RM15,000 and RM20,000 for Malaysian cit­i­zens who meet the cri­te­ria for Rumah Mampu Mi­lik un­der the gov­ern­ment’s Syarikat Peruma­han Ne­gara Ber­had (SPNB) devel­op­ment project. Im­por­tant terms and con­di­tions: Malaysian ci­ti­zen aged be­tween 18 and 60. House­hold in­come of be­tween RM750 and RM3,000 a month. A land owner. Never owned a house. Mar­ried or car­ing for par­ent/s.

E] An in­ter­est­ing af­ford­able hous­ing scheme of­fered by the Pe­nang gov­ern­ment called Hi­jau EKo­mu­niti of­fers af­ford­able and com­fort­able homes in strate­gic lo­ca­tions in Pe­nang, for Pe­nan­gites. Im­por­tant terms and con­di­tions: Malaysian ci­ti­zen born and work­ing in Pe­nang aged 21 and above. Reg­is­tered voter in Pe­nang or re­sid­ing in Pe­nang for at least five years from date of ap­pli­ca­tion. House­hold in­come not ex­ceed­ing RM2,500 for low cost; not ex­ceed­ing RM3,500 for medium-low cost; in­come not ex­ceed­ing RM6,000 for af­ford­able homes priced RM200,000; in­come not ex­ceed­ing RM8,000 for af­ford­able homes priced RM300,000; in­come not ex­ceed­ing RM10,000 for af­ford­able homes priced at RM400,000. Ap­pli­cant and spouse must not own any prop­erty for low-cost or low-medium cost ap­pli­ca­tions. For more of such hous­ing schemes and pro­grammes, visit the re­spec­tive of­fi­cial web­sites on­line.

ELEVENTH MALAYSIA PLAN 2016 TO 2020 In the 11th Malaysia Plan 2016 to 2020, af­ford­able hous­ing is in­cluded as a devel­op­ment ob­jec­tive, com­plete with a five-year plan. Among the strate­gies to at­tain the ob­jec­tives are to in­crease af­ford­abil­ity and ac­ces­si­bil­ity for low- and mid­dle-in­come house­holds, as well as to strengthen man­age­ment and de­liv­ery of pub­lic hous­ing pro­grammes to pro­mote more ef­fi­cient and sus­tain­able af­ford­able hous­ing for the peo­ple.

Ac­cord­ing to the “plan”, 11 fac­tors are in­cor­po­rated in its ef­forts to pro­vide qual­ity af­ford­able hous­ing over the next few years. Th­ese in­clude: 1) elim­i­nat­ing hous­ing ap­provals

that are not based on de­mands; 2) re­duc­ing gov­ern­ment

main­te­nance fund­ing; 3) im­prov­ing co­or­di­na­tion in plan­ning and im­ple­ment­ing through the Na­tional Hous­ing Coun­cil; 4) en­cour­ag­ing res­i­dents’ com­mit­ment in main­te­nance, clean­li­ness and preven­tion of van­dal­ism; 5) us­ing po­ten­tial waqf and baitul­mal land for devel­op­ment of af­ford­able hous­ing; 6) con­struc­tion of tran­sit hous­ing

for youth; 7) aug­ment­ing pri­vate sec­tor

par­tic­i­pa­tion;

8) de­vel­op­ing main­te­nance cost shar­ing for low-cost hous­ing; 9) en­hanc­ing ac­cess to fi­nanc­ing schemes; 10) cre­at­ing a land bank for fu­ture needs; and 11) es­tab­lish­ing an in­te­grated data­base of all af­ford­able hous­ing projects for ef­fec­tive plan­ning and im­ple­men­ta­tion.

While af­ford­able hous­ing may be just a small part of the big plan, it has at least been seen as a prom­i­nent el­e­ment in the big pic­ture of things to come and sig­nif­i­cantly tar­gets to re­sult in “one house per house­hold”.

Un­der­lin­ing ac­tion-driven de­vel­op­ments that are peo­ple­cen­tric and lead to pos­i­tive longterm changes, the 11th Malaysia Plan, de­scribed as dif­fer­ent from any other, an­chors growth on and for the peo­ple.

In ad­di­tion, with the Na­tional Hous­ing Pol­icy up for re­view next year, it will be ex­cit­ing to see what other ben­e­fi­cial pro­grammes, schemes and sub­si­dies will be of­fered to the peo­ple where home own­er­ship is con­cerned.

Fol­low our ar­ti­cle next week for more ideas and op­tions for Malaysians to own a home.

The civil ser­vants PPA1M scheme.

Pe­nang gov­ern­ment’s Hi­jau E-Ko­mu­niti project.

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