M40 may be allowed to purchase subsidised homes

SHAH ALAM, Aug 12 – Families with a household income of between RM3,000 and RM10,000 may soon be able to purchase subsidised and affordable homes, said Tan Sri Noh Omar (pic).

The Urban Wellbeing, Housing and Local Government Minister said the Government was studying a plan to allow the “M40 group” a chance to own affordable homes.

“We hope to have the plan ready by the end of the year,” Noh told reporters on Friday at the affordable homes carnival organised by the Real Estate and Housing Developers Association (Rehda) at the Shah Alam Convention Centre here.

M40 refers to the middle class 40% with household incomes of between RM3,860 and RM8,319.

Currently, those under the B40 group earning a household income of below RM3,000 are eligible to buy subsidised homes from as low as RM35,000 a unit.

Noh said the move was in line with the Government’s aspiration for every family to own a house.

He said the Government will also hold a dialogue with developers about the pricing of houses before issuing an advertising permit and developers licence (APDL).

“If we find the prices of the houses sold by developers are higher than they should be, we will call them up and ask them to justify their pricing before issuing an APDL,” said Noh.

On the difficulty of obtaining housing loans from banks, Noh said his ministry had also requested Bank Negara to ease the lending conditions for loans for first-time house buyers.

He added the central bank was looking into his ministry’s request.

“We told them housing loans must not be lumped together with other types of loans.

“If you take a loan to buy a car, the value of the car depreciates after 10 years.

“However the value of a house appreciates after 10 years,” said Noh.

Earlier in the day, Rehda president Datuk Seri FD Iskandar Tan Sri Mohamed Mansor said he hoped the Government would iron out problems faced by both home buyers and developers over difficulties in obtaining housing loans from banks.

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