Sheda: Genuine house buyers affected by BNM clamp on property market speculators

Sim Kiang Chiok

KUCHING, Nov 1: Bank Negara has clamped down on property market speculators over the past decade by introducing lower margin end-financing on the third property.

The last three year of the lending rules based on proven income was regulated to reduce speculators and also investors, said Sarawak Housing and Real Estate Developer Association (Sheda) Kuching chairman Sim Kiang Chiok.

“While it is good to help the genuine house buyer to reduce the role of speculator and investor through strict lending guidelines, it also affects the genuine house buyer because the guideline is so strict that most genuine ones cannot meet the guideline due to insufficient income or poor payment record,” he said in a statement.

Sim lauded the recent Budget 2020 announcement on Rent-To-Own (RTO) scheme, which would be good for the lower-income group.

“It is very similar to staggering repayment for end-financing where the first five years of repayment is for the interest, whereas RTO is for the rent, which can be lower than the interest repayment.


“However, the RM3 billion fund for this scheme for houses up to RM500,000 is inadequate as it would be sufficient for only 6,000 to 10,000 houses only for the whole of Malaysia,” he lamented.

He also praised the assistance to youth in purchasing their first home, where the federal government will extend the Youth Housing Scheme administered by Bank Simpanan Nasional from Jan 1, 2020, until Dec 31, 2021.

“The scheme offers a 10 per cent loan guarantee through Cagamas to enable borrowers of full financing and RM200 monthly instalment assistance for the first two years limited to 10,000 home units.

“My reservation is that it might be inadequate for just 10,000 houses for the whole of Malaysia,” he said.

For those with the intention of buying a house under the incentives, he advised Sarawakians to apply immediately, as they have to compete with the other 95 per cent of the population especially in the Peninsular Malaysia.

“It also would be good for those who do not qualify for the above initiatives as Bank Negara lending policy should allow our banks to lend based on asset lending and not just based on proven income, staggered repayment for end-financing where for example the first five
years, the repayment can be as low as serving the interest of the bank
loan.”

He reminded that not forgetting that the Homeownership campaign (HOC) is ongoing till Dec 31, 2019, where purchasers can get at least 10 per cent discount with free stamp duty waiver by participating developers.

Sheda’s 2nd Home & Property Roadshow.

Meanwhile, Sheda’s 2nd Home & Property Roadshow 2019 at Vivacity Megamall this weekend is offering the “Buy & Win” lucky draws, where those who spent a minimum of RM1,000 will get a chance to win 40” Smart LED TV, electrical appliances, hampers and
food vouchers.

“Visitors who participate in contributing their opinions in our survey campaign will also be able to get a mystery gift, subject to availability during this three-day property roadshow,” he said. — DayakDaily