Revolving fund to aid Bumiputera homebuyers

Revolving fund to aid Bumiputera homebuyers

The Malaysian Reserve-Property·482 views·2020-01-17 11:58

At least 130 buyers from the B40 and M40 groups will benefit from this initiative

THE Kuala Lumpur City Hall (DBKL) has established RM3.9 million of revolving fund to aid first-time Bumiputera homebuyers from the low-income group in financing their 10% down payment.

Federal Territories (FT) Minister Khalid Abdul Samad (picture) said the money, an amount collected from the developers who released their Bumiputera quota units to non-Bumiputera buyers, will be utilised for a start.

He said over the years, the money was parked under DBKL’s revenue, which could be used for general purpose. This, he said, defeats the original purpose of the fee collection.

“In the past, developers who sold their Bumiputera lots — either residential or commercial, to non-Bumiputeras, had to pay a 5% charge from the released unit price.

“Failing to do so, they will be penalised. So, this money has been collected by the city council, but it was accrued as revenue.

“Now, we have transferred the amount to the revolving fund and this will become the standard practice moving forward,” Khalid said in Kuala Lumpur yesterday.

He added that the establishment is expected to help at least 130 buyers from the bottom 40% (B40) and middle 40% (M40) groups who wish to purchase an affordable home in the city centre, which is capped at RM300,000.

“As this is a revolving fund, loan repayment was set for 10 years without any interest. However, late payers will be fined,” Khalid said, and adding to that, the scheme is applicable for those working or staying in KL.

Khalid said this effort is to help the government in alleviating huge overhang units in the country.

Around 2,000 units of affordable residential units in KL that are currently unsold.

“As long as buyers can prove that they have obtained the loan from a bank, they can come to DBKL to apply for this assistance. It is either a full loan or partial loan with up to RM30,000,” he said.

The programme is applicable to any affordable homes in KL — and not restricted to the Residensi Wilayah project – a project under the FT Ministry.

On the same development, Khalid said the FT Ministry has no plans to release any of its housing projects to the Housing and Local Government Ministry (KPKT) in order to accommodate the National Housing Policy.

Some government housing projects have been moved to KPKT, including the Perbadanan PR1MA Malaysia and Malaysia Civil Servants Housing Programme (PPAM), which were previously parked under the Prime Minister’s Department.

KPKT Minister Zuraida Kamaruddin said her ministry is planning to receive more government housing projects to be consolidated under its umbrella including projects under the Defence Ministry and Economic Affairs Ministry.

However, Khalid said KPKT’s jurisdiction — which covers around 140 local councils — does not include the areas under the FT, including Putrajaya and Labuan.

“DBKL was formed under a different legislation, separate from the 157 Act for KPKT. So, we can use a different approach as the situation varies, although we also refer to KPKT’s policy from time to time.

“For example, the land price in KL is very high compared to other places. As such, if we want to use KPKT’s guidelines to build affordable homes with 900 sq ft (83.6sq m), or equal to 600 per person for one acre, the land cost for one house would be RM150,000.

How do we construct a house with that kind of area for below RM300,000?” he said. As a result, Khalid said his ministry is studying new concepts of affordable homes. One of them is to reduce the house built-up area, but increase the shared common space to allow the units to be sold at a cheaper price.

“This is an ongoing study. We will see the need of coming up with our own housing policy, which we will ensure it stays within the country’s direction,” he added.

Property SE Asia

Comments

Leave a comment in Nestia App