PETALING JAYA: The Better Malaysia Foundation (BMF) has launched a new social enterprise programme to assist the government in addressing the home ownership aspirations of low-income Malaysians, primarily the B40 households.
In a statement, BMF founder Tan Sri Vincent Tan said the social enterprise will facilitate the construction of properties with a low monthly cost of ownership, carefully designed for families to grow and prosper.
“Affordability is a key issue as most, if not all, B40 households will not be able to purchase a home without some form of financial assistance.
“I understand that in the Klang Valley, for every 1,000 affordable houses launched there are something like between 10,000 and 60,000 applicants vying to purchase them.
“There is a severe shortage of affordable homes to meet demand.”
In collaboration with Berjaya Land Bhd, Tan said BMF has designed a 900 sq ft, five-bedroom, four-bathroom show apartment specifically for this initiative.
“Having more bedrooms in a single housing unit will comfortably accommodate B40 families with more family members, providing enough space for their individual needs.
“There is also a show unit of 900 sq ft with dual keys so that spare rooms may be rented out to generate additional income for the household. The show unit may be viewed by appointment at Berjaya Times Square, Kuala Lumpur.”
Tan said affordable housing can realistically be priced from RM120,000 to RM300,000 for an apartment with sizes starting from 450 sq ft, 600 sq ft, 750 sq ft and up to 900 sq ft in the Klang Valley.
“We believe this price range is achievable with government support in terms of charging lower land premiums and nominal development charges for affordable housing projects.“As key partners to this initiative, the federal and state governments’ contribution could also be to sell development land at low cost to developers to build affordable housing projects, especially in urban locations close to transportation hubs, which would translate into lower purchase prices for low-income house buyers.”
The BMF is also appealing to the government to allow banks and financial institutions to provide 100% financing to B40 house buyers with two-generation home loans of between 40 to 60 years duration, so that loan repayments are affordable and manageable.
It is also proposing that the government guarantee the home loans of B40 house buyers, so that such loans can be offered at a lower interest rate and applications will be more readily approved by banks and financial institutions.
BMF noted that the loans would effectively be “double secured” over the property itself as well as by the government’s guarantee.
“The affordable housing shortage for the B40 group must be addressed urgently. Those who are now able to rent their properties may not be able to keep up with their rental payments when they retire or are no longer gainfully employed for whatever reason.
“In such a situation, many B40 households may become homeless and this will lead to social problems and even an increase in the crime rate. This situation must be avoided and the private sector must work together with the government to ensure the success of this initiative.”