MyDeposit may be back to benefit the first time homebuyer (who qualifies)
Background
The MyDeposit scheme was first announced in Budget 2016. It aims to help home buyers with a household income of RM10,000 and below to buy their first home. RM200 million has been allocated for the MyDeposit scheme. The scheme covers 10% downpayment for the home buyer or RM30,000 whichever is lower. The property price has to be RM500,000 or lower.
Thus, if we are purchasing a RM500,000 property, we need to come up with RM20,000 cash for the downpayment as MyDeposit will only cover RM30,000. This assumes our downpayment for this RM500,000 property is RM50,000. The scheme has ended on 31 October 2021. There is now a possibility that the scheme will be extended.
Article in edgeprop.my The Ministry of Housing and Local Government said in the Dewan Negara that there is a possibility to reintroduce the MyDeposit scheme by looking into a more viable and sustainable financing model for the benefit of the target group.
Its Minister Datuk Seri Reezal Merican Naina Merican said, “Based on our records, 2,257 (72.6%) of the applicants aged between 21 and 35, followed by 778 applicants (25%) aged 36 to 45, and 70 applicants (2.4%) aged 45 and above,” A total of RM86.386 million in financing was granted to 3,105 families involving 127 housing projects.
He said that the ministry acknowledged that the scheme had brought about a huge impact on first-house buyers, especially among the youth. Do read the full article here: Article in edgeprop.my
Are you excited? (Sorry if you already own a property yeah)
I personally believe without a property, then the household will continue to face possibility of poverty. Imagine generations after generations, the household continue to pay rental which gets higher every passing year. Just RM1,000 per month is RM12,000 per year or RM360,000 every 30 years. Now imagine three different generations pay rental and we would realise why in many countries, paying rental meant that the household will be poor forever.
Alternatively, the government would have to ensure homes are built for rental to these households at a very low rates. This will help them reduce their expenses and have a chance of saving money for a home of their own. Of course I hope both routes are taken and not just either one. In the mean time, if you qualify for MyDeposit, remember to follow the news and then apply for it when it’s back.
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