Malaysians within B40 and M40, a special loan scheme is coming by August 2018? Hmm…

Housing and Local Government Minister (KPKT) Zuraida Kamaruddin said that her ministry has met agencies such as Bank Negara Malaysia, bankers and the Employees’ Provident Fund on the rolling out of a loan package for the M40 and B40 income level group. To compare loans from 15 banks at the same place, click here.  This is also to address NAPIC’s quarterly report update for 1Q18 which revealed some RM22 billion worth of unsold properties on the market. Earlier article here: unsold units in Malaysia  She mentioned the reasons behind the unsold units such as the properties being at an unfavourable location, high cost and even loan factor. She said, that the ministry was in the early stages of discussion with Bank Negara to draw out the guidelines for a more relaxed loan scheme. Nevertheless, she expects that a new scheme for the B40 and M40 would be launched by August 2018. The full article in here: Loan scheme for B40, M40 groups targeted for August rollout

I have written extensively about Malaysians needing a home. Please note that without a property to hedge against inflation, the tenants would always be at the mercy of the owner. An earlier article clearly demonstrates this, even in advanced property markets: Of low salary, lots of OT and poverty and well, property  However, I do not agree to any ‘simply lending’ policy even if it’s meant to help Malaysians to own a home. If the banks are forced to lend by lowering their requirements, they will definitely increase their requirements for the rest of the borrowers. This is risk management after all. Seriously, the basic fundamental is to help people own a home and it could be by ensuring they have a higher income (ensuring prices go up slower than salary increments) or the home prices lowered (building further and smaller maybe?)

Perhaps something along the lines of Rent-to-own would be better? Earlier article here: Rent-to-own a value-added solution to buyers and banks  As for pushing the unsold units to the homebuyers, I am not sure if this is also in the best interest of the home buyers. After all, if the location was unfavourable then, if nothing else have changed, then the location is still unfavourable today. It will still be unfavourable next year! Except perhaps we have some fundamental changes. Perhaps a better connectivity? MRT Transit buses perhaps? Let’s also remember what our ex-Bank Negara governor said many years ago. Here’s that article: Stay safe, buy within affordability and stop bubble building  Hopefully everyone notes the advice from Dr. Zeti who’s now part of the Team of Eminent Persons. Happy preparing enough before buying.

written on 7 July 2018

Next suggested article: Lending to everyone is not helping the borrower, actually

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