November 21, 2018
Without a property, it’s usually poverty when one retires because by then, the income has stopped and yet one still has to pay for monthly rental. However, it is equally important to note that the downpayment is a huge issue and many times, rental is the only option a household may have at this point in time. In this case, it’s extremely important to have a rental which could cater to their needs. In this case, perhaps a public rental housing scheme for the B40 group of households here in Malaysia. This is the proposal by the Real Estate and Housing Developers’ Association (Rehda). Article in TheEdgeMarkets here.
Rehda Institute chairman Datuk Jeffrey Ng said the association’s research arm, Rehda Institute is in the process of formalising the proposal with the assistance of investment banks and accountants. Basic idea is for a residential real estate investment trust (REIT) to provide public rental housing for the bottom 40 (B40) income group as an alternative solution to home ownership. He said, “Once we have formalised it, then we will be making submissions to the two ministries (housing and local government, and finance). If they are agreeable, then the next step is to go to [the] Securities Commission [Malaysia].” Ng shared that under this proposed REIT scheme, the government can provide land for social or public rental housing in suitable locations in urban centres, and the REIT undertakes the project at its own cost. The REIT will also be given the right to rental returns from the development for 30 years at prefixed rental rates. Article in TheEdgeMarkets here.
The more options for the households needing a proper home, the better. My only advice is for all these programmes to have a good enforcement team when it comes to maintenance. If maintenance fee is needed to be paid, then it must be fully enforced and actions taken immediately when the payment is not forthcoming. If we do not do this, it will be very unfair to all the rest of the people who needs a proper home and they are paying. Just look at the old low-cost flats and we may understand why building is NOT the solution but the maintenance of the built is. Happy choosing the scheme most relevant to your needs currently. (Remember to use this as a stepping stone for a home of our own, not as an end to the need to have a home)
written on 21 Nov 2018
Next suggested article: What is T20,M40 and B40? Just do more.