My First Home Scheme Limit Price Raised To RM400,000

By Friday October 7th, 2011 No Comments

KUALA LUMPUR, Oct 7 (Bernama) — Prime Minister Datuk Seri Najib Tun Razak said the government proposed to increase the limit of house prices in the My First Home scheme from RM220,000 to RM400,000.

“The improved scheme will be available to housebuyers through joint loans of husband and wife beginning Jan 2012,” he said while tabling the 2012 Budget at the Dewan Rakyat here today.

The government launched the scheme in March 2011 to fulfil the needs of those earning less than RM3,000.

Najib said the government had also established the 1Malaysia People’s Housing (PR1MA) as the sole agency to develop and maintain affordable and quality houses, specifically for the middle income group.

In 2012, a total of 7,700 houses will be built in Cyberjaya, Putra Heights, Seremban, Damansara and Bukit Raja, Klang, he said.

“House prices under this scheme are lower than market prices as the land and facilitation funds are provided to the developers.

“For example, an apartment unit with an area of 1,000 sq ft in Putrajaya is sold at RM150,000 compared to the market price of RM220,000.”

Najib said the government would also provide 100 per cent stamp duty exemption on loan instruments under the programme.

He said to protect housebuyers from the high risks of incomplete, delayed or abandoned projects, the government would encourage the construction of more houses using the build-then-sell concept.

For this purpose, Islamic banks have agreed to provide syariah-compliant financing and undertake construction risks. Instalments would only commence after the house is completed.

He said the scheme would be implemented for houses costing RM600,000 and below.

“As there are still many people, especially the lower income group who do not own a house, the government will continue to implement the People’s Housing Programme (PPR) by building 75,000 units of affordable homes under the 10th Malaysia Plan (10MP).

“In 2012, RM443 million is allocated for the construction of 8,000 units for sale and 7,000 units to be rented.”

Najib said Syarikat Perumahan Negara Berhad (SPNB) had been given an aditional allocation of RM200 million to build 10,000 units of Rumah Mesra Rakyat (RMR) in 2012.

“Each house costing RM65,000 will be sold for only RM45,000 and the government will subsidise RM20,000,” he said.

He said the government also proposed to continue implementing the Abandoned Housing Rehabilitation Programme in 2012 with an allocation of RM63 million, to rehabilitate 1,270 abandoned houses.

Apart from this, RM40 million will be allocated for restoration and maintenance of public and private low-cost housing, he said.

Noting that the 41,000 expatriates also contributed to the country’s economic development, he said they would be allowed to withdraw their employees provident fund (EPF) for house purchase.

He hoped the facility similar to that available to Malaysians would provide a conducive environment for expatriates to continue working in the country.

Najib said the goverment also proposed to set up a Special Housing Fund for Fishermen with an allocation of RM300 million to build houses or refurbish dilapidated ones of fishermen who did not have a fixed income.

Source : Bernama

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