Introduce affordable rent-to-own scheme for B40 youth
In addressing the issue of housing affordability and ownership among youth in the low-income group (B40), one avenue to explore is the implementation of the Rent-to-Own (RTO) scheme for affordable housing units.
Anecdotal evidence has shown that it will become harder for youth to purchase homes amid this challenging time when employability is uncertain for new entrants in the labour market. Therefore, they are at risk of not earning stable and sufficient incomes.
There was a positive first signal in May, after the announcement made by Federal Territories Minister Tan Sri Annuar Musa, about the government considering a Rent-then-Own scheme for B40 youth in Kuala Lumpur who are civil servants, or running their own businesses but cannot afford to own homes.
Under the proposed scheme, over 1,000 housing units will be rented out for RM800 to RM850 per month, while affordable houses priced less than RM200,000 are built. Once the housing projects are completed, the rental payments could be used to pay for the deposit of the new houses or used as rebates.
Showing posts with label Affordable Housing. Show all posts
Showing posts with label Affordable Housing. Show all posts
Monday, 28 September 2020
Sunday, 6 October 2019
PR1MA renews agreements with developers worth RM3.29b
The renewed agreement outlines an improved business model that will enable PR1MA and the developers to more effectively deliver on the mandate to provide affordable housing for the rakyat, in line with the government’s national housing agenda.
“The renewed partnership between PR1MA and its developers paves the way for the parties involved to work together strategically, including the sales and marketing aspects of the projects, to complete PR1MA projects within the stipulated time and budget,” it said in a statement today.
The successful completion of the identified PR1MA projects will support the government’s aspiration to provide one million affordable homes within the next 10 years.
PR1MA acting chief executive officer Mohd Nazri Md Shariff said under this new partnership agreement, greater responsibilities are placed on both parties in the development of the homes so as to improve PR1MA’s financial position and resolve the issue of unsold residential units and delayed payments.
“It includes extending the sales and marketing functions to the developers, as well as enhancing collections from buyers to ensure that developers’ monthly progress claims are paid,” he said.
He said this supersedes the previous agreement where developers and contractors are only responsible in building houses and are paid a monthly progress payment by PR1MA.
“During the past one year, PR1MA had undergone a due diligence process, corporate restructuring and management change process, which was necessary to ensure that we are aligned to meet Ministry of Housing and Local Government’s (KPKT) objective in ensuring sufficient, holistic and affordable homes are available for the rakyat,” Mohd Nazri said.
During the Home Ownership Campaign 2019, PR1MA homes continue to garner an overwhelming response from homebuyers with sales bookings of 11,737 homes and a nett gross development value (GDV) of RM3.5 billion to date, despite the challenging property market.
With the support from the KPKT and other stakeholders, there are currently 94,191 PR1MA projects that are ongoing nationwide of which 13,359 units have been completed to date with another 42,777 units currently under various stages of construction.
PR1MA is targeting to complete 4,082 units by end of this year.
PR1MA was established under the 2012 PR1MA Act to roll out a thorough and extensive programme in building quality houses for the middle-income group who live in the urban and suburban areas, with a household income of between RM2,500-RM15,000 a month.
PR1MA is the only authorised party entrusted to develop, manage and maintain PR1MA housing communities to provide homeowners with comfortable and quality living in a harmonious community.
Subscribe to:
Posts (Atom)
RSS Feed