Government’s Assistance For First-Time Home buyers

About 20years ago, property prices were still affordable for everyone. However,  property prices have increased double or triple by today, while those youngster especially fresh graduate salary are far behind the hike of property price. Hence, affordability is the priority and concern of young purchasers.

 

To minimize the issue of the affordability of property, the Malaysian government has offered two key schemes for fresh graduate and others first time property buyers. Via SRP and PR1MA

 

srp

My First Home Scheme / Skim Rumah Pertamaku (SRP)

My First Home Scheme was announced in Budget 2011 by the government to assist young adults who have just joined the workforce to purchase their first residential property. The scheme allows young adults to obtain up to 100% financing from financial institutions.

 

pr1ma

PR1MA / Perumahan Rakyat 1Malaysia

PR1MA was established to plan, develop, construct and maintain affordable lifestyle housing for middle-income households in key urban centres. The government plans to build affordable homes in cities and towns in Malaysia.

 

Key criteria and benefits

🖈 100% financing i.e. no need for 10% down payment

🖈 Residential properties in Malaysia only

🖈 Malaysian citizens, up to the age of 35 years

🖈 Single borrower gross income not exceeding RM5,000 per month and joint borrowers gross income not exceeding RM10,000 per month (based on gross maximum income of RM5,000 per month per borrower)

🖈 Property value between RM100,000 and RM400,000

🖈 Must occupy property upon purchase

🖈 Financing tenure not exceeding 40 years, or not more than 65 years old

🖈 Installment payable via monthly salary deduction

🖈 Compulsory fire insurance / Takaful

🖈 Amortising facility only, without redrawable features

🖈 Malaysian citizens (individuals or families) with an average monthly household income between RM2,500 and RM7,500

🖈 At least 21 years old at time of application

🖈 Those who currently own no more than one property

🖈 PR1MA homes are allocated through an open balloting process

🖈 A 10-year moratorium will be imposed, during which the property cannot be sold or transferred to another party without prior approval from PR1MA

🖈 Must occupy property upon purchase

Source: iProperty

Hopefully with these 2 schemes will help more young people to own their first dream house.

For more information about Property Investment, please visit 👉 Property Intensive Seminar