A step-up for PR1MA housing sales

Shoppers watching the televised broadcast of Budget 2017 in an electrical appliance shop at Prangin Mall, Penang.

THE Real Estate & Housing Developers’ Association (Penang) hopes the ‘step-up’ end-financing scheme for 1Malaysia People’s Housing Programme (PR1MA) houses would be extended to other types of housing in the country.

Its chairman Datuk Toh Chin Leong (pic) said the scheme, which promised easier financing for house buyers with loans of between 90% and 100%, should be able to stimulate the sales of PR1MA houses.

“Through the scheme, an applicant with a RM3,000 monthly income will be eligible to get a loan of more than RM295,000.

“We hope the scheme will be made available to buyers of other types of affordable housing projects in the country,” Toh added.

The special scheme, a collaboration among the Government, Bank Negara Malaysia, Employees Provident Fund as well as four local banks (Maybank, CIMB, RHB and AmBank), will be implemented on Jan 1.

Risk management executive Christopher Siddharth, 26, said many young professionals in cities such as Penang and Kuala Lumpur would be keen to purchase medium-cost homes in decent neighbourhoods.

Christopher was commenting on the first home buyers affordability plan announced under the Budget 2017.

To make it easier for first home buyers to own property, the Government will introduce concepts through the National Blue Ocean Strategy where Government vacant lands will be provided to GLCs and PR1MA to build more than 30,000 houses with selling price of RM150,000 to RM300,000.

Christopher also commented on the plan to build 10,000 houses in urban areas for rental to eligible youths with a maximum of five years at a lower-than-market rate.

“It sounds good but what we need to know is what sort of houses are for rental?

“Would they appeal to youths?” he asked.

Christopher also said location of the houses was also another factor to be considered.

“Are the houses located close to the city or far from it? And more importantly, what is the timeline of these initiatives?” he questioned.

On the new scheme under Budget 2017 to reduce taxes for companies for 2017 and 2018, KPMG partner Ooi Kok Seng said the reduction would increase their expenditure for expansion exercise.

Under the new scheme, the higher the increase in profit, the lower the tax rate the company needs to pay.

“This scheme provides a reduction by stages based on a percentage increase in income compared to the previous year of assessment,” Ooi added.

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Government , Northern Region , budget 2017


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