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Buy from me, follow my rules. Perfect.

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Buy one unit, ‘cut’ them into smaller units and rent out to 3 times the usual number of people. So, typical mortgage could have been RM1,300 per month (affordable home) but renting it out to 15 people at RM250 per pax will become RM3,750. This is just an assumption but truth is, abusing the rights to own an affordable home could happen. By the way, this does not happen in our neighbour down south (Yes, it’s Singapore) because the enforcement is strict and the penalty is hefty. Alternatively, buy an affordable home even when one is NOT entitled to it and later selling it for a good profit should also not happen. If we intend to help the right group, we need to have rules and enforce them strictly.

Article in themalaysianreserve.com Zuraida Kamaruddin said the government has plans to introduce a new rule on the resale of affordable homes to government under the NAHP to control prices and ownership of the units. She said owners of affordable homes who want to resell after the minimum holding period may only sell them to her ministry. This came after reports surfaced that affordable home owners were renting out and selling the properties to non-eligible occupants. These led to complaints that the country’s affordable homes were sold to over-qualified buyers at inflated prices and rented out to immigrants.

Zuraida told reporters that the ministry is refining the rules which will be imposed in 2019. She said there’s nothing much that can be done about the old units. Hence, they are enforcing this rule on the first affordable housing project of 2019. The Deputy Minister Datuk Raja Kamarul Bahrin Shah Raja Ahmad said although the sub-sale of houses is not under the ministry’s purview, proposal will be considered by the government so to ensure priority is given to those who haven’t owned a house. Raja Kamarul Bahrin Shah said it’s odd how some can own multiple affordable units while others have to wait years to own just one. Article in themalaysianreserve.com

The last comment from Raja Kamarul above will come back to haunt us if the rules which will be imposed is not enforced strictly without fear and favour. As for non-eligible buyers, this is definitely due to the lax selection criteria which could be solved easily too. Zuraida also said that the owners of these affordable homes who wanted to sell could sell back to her ministry too. While this looks good, it may be better for the sale to be directly to the qualified buyers instead. As for the qualified buyers, the Ministry could be the decision maker once they passes through the selection criteria. Happy understanding and I wish all Malaysians needing a home, gets a home.

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<Featured Image is courtesy of Stock Photos from zimmytws>

Article written and edited by Charles. News article summarised by Dina Batrisyia.

written on 4 April 2019

Next suggested article: Prices rising forever? My three wishes.

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