Bank Negara Malaysia (BNM) organised a workshop with the theme of “The Housing Market: Issues and Policy Options.” Article here. BNM shared the following: Households should be given access to credit so that they can buy their own home but it is not in their interest if they have to incur an unsustainable level of debt just to own that first home. Thus all policies with regards to credit access must include the protection of homebuyers which may givers to financial hardship and subsequently foreclosure or poorer welfare. In brief, this was what our former BNM governor Zeti shared which is for buyers to buy within their affordability levels.
The BNM workshop also stated that broader alternatives for homeownership is developed, including a well-functioning rental market. Of course, what this meant is that the government has a stake in it, for example building homes and renting them out instead of only building homes and trying to sell them when the buyers themselves could not get loan approvals for them. It further stated that these measures may provide a viable route to help low income and early career individuals onto a path towards eventual home ownership. Better enforcement is also critical to prevent the abuse of schemes intended to assist specific household segments to own or rent homes.”
Personally, I also hope people are more understanding of themselves and the debt they want to carry for a very long time. Sometimes we have to wonder whether the property prices were simply too high ( I don’t think so) or people just refused to settle for something lesser. I managed to upgrade to a bigger high-rise only after 8 years of working experience and many more years of savings. Coming back to the question of renting for life, this may be a viable option if the house prices is indeed beyond the reach of the majority. In fact there are many studies which we can read online which shows why rental may just be a better option compared to buying. Happy deciding.
written on 11 Oct 2016
Next suggested article: The poor should own their own home, period.