I wrote this earlier: Banks should not simply lend. Buyers should not simply buy There are some of us who prefers to spend our money on some other stuffs but not property. It’s perfectly fine. Trouble comes if we are encouraged to buy a property but we do not qualify for one. So, the underlying issue should always be starting from the monthly salary before moving on to the property price and then followed by loan approvals, conservatively.
The developers / owners can put any selling price they want, as long as the buyer could qualify for the loan. If they do not, then someone just have to make it more affordable. Of course, another way to help those who truly needs financing assistance is through government intervention. Help is coming soon.
Article in edgeprop.my Ministry of Housing and Local Government (KPKT) Zuraida Kamaruddin said, “We are looking at about six different schemes with about 15 banks and financial institutions on board.” She has asked banks to relax some of their requirements to fund housing projects, with the government promising to deliver one million affordable homes by 2028.
She added, “Developers have switched their focus from building expensive high-end homes to affordable homes. Therefore, we need the banks’ support in order to reach the government’s target to build 1 million affordable homes in 10 years. The demand [for affordable homes] will increase and banks would be more willing to help developers fund the projects.”
As per Skim Rumah Pertamaku webpage, Cagamas guarantees up to the first 20% of the financing on a ‘first-loss’ basis. Meanwhile under the revised Skim Rumah Pertamaku scheme, borrowers can now borrow up to 110% if they are buying houses below RM300,000 and have an individual or household monthly income of no more than RM10,000. The age cap is removed as well, as long as it is your first home purchase. Thus far, 7,000 cases have been approved to date while last year, 8,000 cases were approved. Full Article in edgeprop.my
Let’s see what is announced in October 2019. I am very sure the government will not be making everyone who does not qualify yet to also own a home today. We do not need any deterioration in borrower quality yeah. Let’s have property market Malaysia growing at a measured pace and continue to educate buyers that savings is vital if they intend to buy a property. It’s really not about continuing the lifestyle of expensive coffee but can still buy a property… Happy understanding.
written on 22 Aug 2019
Next suggested article: Best property investment plan. Buy low, sell high.