Mar 28 2011 |  |
Extract from The Star (26/03/11)
THE recent announcement of My First Home Scheme by Prime Minister Datuk Seri Najib Tun Razak, allowing 100% financing for first time homebuyers earning less than RM3,000 a month has been well-received by property players and the public in general.
It is estimated that 40% of Malaysian households earn less than RM3,000 per month, indicating strong demand for affordable houses. Statistics show that about 35% of the total population in Malaysia fall within the age group of 25 to 49 years, the segment with the highest demand for houses. The main target of My First Home Scheme, those aged between 25 and 34 years consist about 15.4% (4.3 million) of the total population.
The scheme is expected to provide greater opportunity for younger housebuyers to acquire homes costing from RM100,000 to RM220,000 with a repayment period of up to 30 years with 100% financing from 25 financial institutions that have agreed to participate in this scheme.
Several key initiatives under this scheme include government collaboration with national mortgage company Cagamas Bhd to bear the 10% initial down-payment costs for the houses. In addition, first time home buyers will also be given stamp duty exemption of 50% on instrument transfer on a house priced not more than RM350,000 and another 50% exemption on loan agreement instruments to finance the home. The Stamp Act 1949 had also been amended to expedite property registration process by the Valuation and Property Services Department from 30 days to one day.
THE recent announcement of My First Home Scheme by Prime Minister Datuk Seri Najib Tun Razak, allowing 100% financing for first time homebuyers earning less than RM3,000 a month has been well-received by property players and the public in general.
It is estimated that 40% of Malaysian households earn less than RM3,000 per month, indicating strong demand for affordable houses. Statistics show that about 35% of the total population in Malaysia fall within the age group of 25 to 49 years, the segment with the highest demand for houses. The main target of My First Home Scheme, those aged between 25 and 34 years consist about 15.4% (4.3 million) of the total population.
The scheme is expected to provide greater opportunity for younger housebuyers to acquire homes costing from RM100,000 to RM220,000 with a repayment period of up to 30 years with 100% financing from 25 financial institutions that have agreed to participate in this scheme.
Several key initiatives under this scheme include government collaboration with national mortgage company Cagamas Bhd to bear the 10% initial down-payment costs for the houses. In addition, first time home buyers will also be given stamp duty exemption of 50% on instrument transfer on a house priced not more than RM350,000 and another 50% exemption on loan agreement instruments to finance the home. The Stamp Act 1949 had also been amended to expedite property registration process by the Valuation and Property Services Department from 30 days to one day.
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