The Malaysian property market has been increasing in the last decade and only slowed down due to the COVID-19 pandemic. This situation is expected to continue on its trend once the pandemic is over.
Mismatched of income
The bigger problem here really is that while property prices continue to go up, the income that people are drawing is not coping with such prices. You would need to save up to cover the downpayment. After that, it is about servicing the loan as well as maintenance. With all that factored in, it seems quite impossible to even own a property for a typical Malaysian no? if you are looking for high-end properties, then you better be prepared to have a large sum of money to go about. On the other hand, you can consider the affordable housing schemes available.
Several schemes provided
There are a few options that you can choose from if you are considering an affordable house mostly offered by the federal or state governments. They are all catered to Malaysians who have limited funds and to help them in certain areas like low downpayment and such. Among the options that you can consider are
Perumahan Rakyat 1 Malaysia or PR1MA
This is a scheme targeted to Malaysians int eh low and middle-income groups. You can choose various types of houses that cover both landed and high-rise. Properties in this scheme range from MR100,000 to RM400,000. You will be provided with the financing of up to 110% of the SPA (Sales and Purchase) price. Applications can be done online for those (single or married) with income from RM2,500 and above. Take note that only first-time or second-home buyers are eligible for this scheme.
My First Home Scheme
As the name implies, this is a scheme targeted at first-time homeowners. A list of participating banks is in this program and you can apply for up to 110% loan. It covers properties that are completed or still under development. This scheme is offered by respective banks where you can either be a salaried worker or self-employed with a maximum of RM5,000 monthly income (or RM10,000 for joint applicants). Do take note that you are required to reside in the property that you are buying and not rent it out to someone else.
Known also as the BSN (Bank Simpanan Nasional Program Perumahan Rakyat, you can enjoy up to 100% loan. This scheme is targeted to those looking for low and medium-cost houses. You have to be between 18 and 60 years old to be eligible for this scheme with at least RM1,000 salary per month.
My Selangor Home
This scheme is targeted at those intending to buy and stay in the Selangor state. You can choose among the residential properties ranging between RM42,000 and RM250,000. The Rumah Selangorku scheme can be easily applied online and you should not have any other properties in the state. There are several types of properties available were for Type A, you need to have at least RM3,000 salary per month while Types B, C and D will require you to earn between RM3,001 and RM10,000 each month.
Perumahan Penjawat Awam Malaysia
This scheme is specifically catered for those who are working in civil service. PPAM offers several types of homes that range between RM90,000 and RM300,000. You can submit your application online and has to prove your employment. This scheme is also available for retired civil servants.