KUCHING: Young people who intend to buy a house under the Youth Housing Scheme have been told to apply quickly. Sarawak Housing and Real Estate Developers Association (Sheda) Kuching chairman Sim Kiang Chiok said the government will extend the Youth Housing Scheme administered by Bank Simpanan Nasional to young people to purchase their first home from Jan 1 next year until Dec 31 2021.
“It is good as the scheme offers a 10 percent loan guarantee through Cagamas to enable borrowers full financing and RM200 monthly instalment assistance for the first two years limited to 10,000 home units,” he said.
However, Sim said it might be inadequate for just 10,000 houses for the whole country.
“For those who are buying a house under the incentive, it would be good to be quick to apply as we have to compete with the other 95 percent of the population across the South China Sea,” he said in a statement today.
For those who do not qualify for such initiatives, he said Bank Negara’s lending policy should allow banks to lend based on asset lending and not just based on proven income.
“Not forgetting too the Home ownership campaign (HOC) is ongoing till Dec 31 this year where purchasers can get at least 10 percent discount with free stamp duty waiver by participating developers,” he said.
In the recent Budget 2020, with the Rent-To-Own (RTO) scheme, he said it is good for the lower income group.
He said in the property market, there are three types of purchasers, namely the speculator, investor and users.
“Over the last 10 years, our Bank Negara has clamped down on speculators of the property market by introducing lower margin of end-financing on the third property. The last three years of the lending rules based on proven income was regulated to reduce speculators and investors.
“While it is good to help the genuine house buyer to reduce the role of speculator and investor through strict lending guidelines, it also affects the genuine house buyers because the guideline is so strict that most genuine ones cannot meet the guideline due to insufficient income or poor payment record,” he said.
