People’s Housing Scheme better than the Youth Housing Scheme

KUALA LUMPUR, 10 Oct: The Youth Housing Scheme which was announced by the Prime Minister, Datuk Seri Najib Razak, is seen as failing to match the People’s Housing Scheme which was introduced by Pakatan Rakyat (PR) yesterday.

Although the youth housing scheme allows applicants to withdraw from the Employees Provident Fund (EPF), it is still first-come-first-served in nature and is only limited to 20,000 units.

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This scheme also comes with a guarantee by the central government to provide a loan of 10 percent and exemption of stamp duty by 50 percent.

This is in contrast with the PR proposal. Bank Negara Malaysia should allow the Developer Interest Bearing Scheme again to ensure that administrative fees are included in the financing package.

PR also suggested for the stamp duty to be repealed on the purchase of a first home in order to reduce the overall cost of owning a home.

In addition, the central government has been urged to emulate the Joint Ownership Scheme adopted by the Penang government for expanding the funding for home ownership to low-income earners.

Through this scheme, houses will be owned jointly by the government and the buyer with the government providing a loan of up to 30 percent.

At the same time, PR also called for the funding to the Housing Credit Guarantee Coeporation (SJKP) to be increased to RM3 billion compared to the current RM380 million.

Thus, SJKP can extend credit guarantees to buyers and financial institutions up to RM400,000.

The youth housing scheme by the central government offers the first ownership of a home to not exceed RM500,000 to married youth aged 25 to 40 years.

This scheme is offered to those with a household income that does not exceed RM10,000 and the maximum loan financing of 35 years.

The central government will also give RM200 a month for two years to reduce the burden of youth.

NS

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