The poor in Penang has great Rent-to-Own choice now.

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I disagree that anyone should rent a home forever because their income will stop after they retire and the salary will not keep coming forever. However, I agree that the government must do their best to ensure the poor gets a decent roof over their heads. Especially by allowing the B40 households rent a decent place for below the market rental to ensure they have more money for other essentials. DBKL’s plan was for a room-based accommodation for those needing a place to stay as they start their career in Kuala Lumpur. Earlier article here: 190 rooms with a rental of just RM100 per month and maximum of 18 months Now we have the plan by the Penang state government. It’s much bigger in size though I do not think it will be at RM100 per month.

Article in edgeprop.my here. State Housing, Local Government, Town and Country Planning Com­mittee chairman Jagdeep Singh Deo said that Penang’s low-cost RTO housing units will be for those who were unable to buy a low-cost units due to high loan rejection rate. It is being built by Ideal Property Group and comprises 1,175 units of at least 650 sq ft with three bedrooms. As for the rental, Jagdeep said, “Two blocks will be under the RTO scheme to help those in need. We have not determined the rental charges yet. But it should be similar to the Taman Sungai Duri Permai project in South Seberang Prai, where each tenant pays RM150 as rental and RM20 maintenance fee each month for 23 years before owning the unit.”

Jagdeep also said that there were already two pilot projects in South Seberang Perai for the RTO scheme; Taman Seruling Emas and Taman Sungai Duri Permai. He shared, “Tenants of Taman Seruling Emas only pay RM100 a month and a RM20 maintenance fee for 15 years. The government is subsidising RM5,000. The actual price of the unit is RM25,000 but we are only charging the prospective buyer about RM22,000. As for the Taman Sungai Duri Permai low-cost housing project costing RM42,000, the tenants pay RM150 per month and RM20 maintenance fee for 23 years.Article in edgeprop.my here.

Looks like the RTO scheme in Penang is a good model to follow. Low monthly rental and the tenant actually gets to own the unit after some time. I wonder when will other states be following this model? Yes, we must take note that these RTO schemes are not in some popular neighbourhoods in Penang such as Greenlane or Tanjung Bungah but at RM100 plus rental per month and one gets to own the unit after that, it’s a great deal. We must always remember that with a property, then poverty will come. Earlier article here: JOwning a property to escape poverty. Even in advanced countries, property is usually the sole reason why a household have no money left to spend on other necessities. The usual reason? Property prices too high and rental then follows…

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

<Featured Image is courtesy of Stock Photos from Nicola Pulham>

Next suggested article:  Penang’s overhang is dropping.Time to buy!

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