By Sharen Kaur
Published in NST on October 11, 2014
Published in NST on October 11, 2014
KUALA
LUMPUR: Real Estate and Housing Developers Association Malaysia (Rehda)
president Datuk Seri FD Iskandar Mansor says the 2015 Budget was fairly
positive for the property sector and hopes banks will ease their
lending rules for first-time house buyers.
“We are happy as the issues faced by youths were addressed in this budget. We hope the banks will take to lending. It is their job to lend. We developers want to build more affordable houses. But if people can’t borrow, then how are we going to build?” FD Iskandar told Business Times.
The government is increasing house ownership with the Youth Housing Scheme, which offers a funding limit for a first house not exceeding RM500,000 for married youths aged between 25 and 40 years and with household income not exceeding RM10,000.
Under the scheme, the government will provide a RM200 monthly financial assistance to borrowers for the first two years to reduce the burden of monthly instalments.
The government will also give a 50 per cent stamp duty exemption on transfer documents and loan agreements for properties worth up to RM500,000 until December 31 2016, and 10 per cent loan guarantee so that they could obtain 100 per cent financing.
Borrowers will be allowed to withdraw from their EPF Account 2 to top up their monthly instalment.
“The government understands how difficult it is for people to come up with upfront money and is sensitive to their needs. Waiving 50 per cent on stamp duty is a step in the right direction. We hope the banks will follow,” he said.
FD Iskandar also said the allocation of RM1.3 billion to build 80,000 homes under the 1Malaysia People’s Housing Programme was encouraging for the sector.
“The National Housing Department is going to build 26,000
units for RM644 million while Syarikat Perumahan Negara Bhd will construct up to 37,000 homes. This will help to address the issue of house ownership at affordable prices.
“We, developers, are not running away from building affordable homes. Since both the federal and state governments have the land to build, let us, developers, focus on building homes for the whole nation,” he said.
“We are happy as the issues faced by youths were addressed in this budget. We hope the banks will take to lending. It is their job to lend. We developers want to build more affordable houses. But if people can’t borrow, then how are we going to build?” FD Iskandar told Business Times.
The government is increasing house ownership with the Youth Housing Scheme, which offers a funding limit for a first house not exceeding RM500,000 for married youths aged between 25 and 40 years and with household income not exceeding RM10,000.
Under the scheme, the government will provide a RM200 monthly financial assistance to borrowers for the first two years to reduce the burden of monthly instalments.
The government will also give a 50 per cent stamp duty exemption on transfer documents and loan agreements for properties worth up to RM500,000 until December 31 2016, and 10 per cent loan guarantee so that they could obtain 100 per cent financing.
Borrowers will be allowed to withdraw from their EPF Account 2 to top up their monthly instalment.
“The government understands how difficult it is for people to come up with upfront money and is sensitive to their needs. Waiving 50 per cent on stamp duty is a step in the right direction. We hope the banks will follow,” he said.
FD Iskandar also said the allocation of RM1.3 billion to build 80,000 homes under the 1Malaysia People’s Housing Programme was encouraging for the sector.
“The National Housing Department is going to build 26,000
units for RM644 million while Syarikat Perumahan Negara Bhd will construct up to 37,000 homes. This will help to address the issue of house ownership at affordable prices.
“We, developers, are not running away from building affordable homes. Since both the federal and state governments have the land to build, let us, developers, focus on building homes for the whole nation,” he said.
Housing issues faced by youths were addressed in the 2015 Budget.
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