The National Mortgage Corp’s subsidiary Cagamas SRP Bhd has today launched the Digital Skim Rumah Pertamaku (Digital SRP) platform for Malaysian homebuyers to apply for a loan online and purchase their first home.

Cagamas SRP chairman Datuk Bakarudin Ishak said with the digital initiative, the company expects a more than 50% increase in cumulative SRP loans to RM12.6 billion by 2021.

Launched under Budget 2011, SRP is a government initiative to assist eligible first-time homebuyers to obtain up to 110% financing from participating banks.

“Cagamas SRP expects to see a cumulative increase of SRP loans approved by 14,400 in 2020,” said Bakarudin, adding that the company has accumulated a total of 26,213 approved loans with a total financing of RM9 billion in 2019.

As the majority of the customers are getting younger or between 25 years and 40 years old, Cagamas SRP is also moving online to facilitate more enquiries from internet savvy buyers.

As of June 2020, SRP has assisted close to 33,000 first-time homebuyers with 90% of those from the low income group (B40).

About 71% of the approved applications were from Selangor, Johor, Kuala Lumpur, Perak and Melaka. The average loan size was RM206,450, with 86% of the approved applicants being 25 to 40 years of age.

Out of this, 27,600 or 84% were Islamic financing while the balance 5,400 (16%) were conventional loans.

Under the SRP, eligible first time Malaysian homebuyers can secure up to 110% financing  from participating banks without having to put a down payment (for properties priced up to RM300,000 only).

Cagamas will guarantee the banks on a ‘first-loss’ basis for financing above the 90% level.

The scheme is open to those earning RM5,000 and below (single applicants) or RM10,000 and below (joint applicants). They are eligible to purchase a property in either primary or secondary markets priced at a maximum of RM500,000.

Source: EdgeProp.my

Despite the trying times, the Penang government is confident that the Penang Real Estate and Housing Developers Association (Rehda) will be able to surmount the challenges.

Chief Minister Chow Kon Yeow said he believed Penang Rehda, through its experiences, would be resilient to face whatever adversities or hardships.

“I think overcoming the challenges will make us all even more resilient. And you are not new to challenges. This industry has always been facing challenges. You have built up resilience,” Chow told a Penang Rehda delegation, led by newly-elected chairman Tan Hun Beng, during a courtesy call on him in Komtar today.

“How to bring Penang Rehda forward despite all these challenges will now rest on Mr Tan’s shoulder.

“For the past 10 over years, Penang Rehda has been a very important stakeholder to the state government and we hope that you will continue to play this role as a bridge between the government and the industry and ultimately to the consumers.”

Also present were state Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo, Penang Rehda immediate past president Datuk Toh Chin Leong, recent past chairman Datuk Jerry Chan Fook Sing, and several other office bearers.

Tan said he was happy to have the opportunity to lead a team to meet up with the chief minister.

“In these challenging times, the housing industry is not doing very well and we’ve to work very, very hard and closely with the state,” said Tan, who is also the IJM Perennial Development Sdn Bhd general manager.

“It’s a very highly regulated business; everything that we are doing needs approval from the authorities, like from road to street lighting, building, planning and infrastructure.

“As we all know, the basic need for every human being is food and shelter.

“So, housing is one of the most essential things and nowadays it is very expensive. We actually have to think of how to make it work for everybody.”

Tan said in Singapore, they allow house buyers to utilise their CPF (Central Provident Fund) to foot their instalment.

He said he had highlighted this creative move in a recent meeting with housing officials, including Bank Negara personnel, so that Malaysians, especially first-time buyers, could be permitted to do the same with their EPF (Employees Provident Fund) and have a comfortable home.

Jagdeep said the state government understands Rehda’s predicament and would come out with a guideline following certain requests made by the association.

He, however, stressed that affordable housing is still the state government’s priority.

Chan thanked the state for considering the difficulties faced by the housing sector at the moment.

“They have come out with certain incentives which we hope will be implemented as soon as possible,” Chan said.

The Penang Rehda office bearers for 2020-22: Tan Hun Beng (chairman), Khoo Teck Chong (deputy chairman), Chan Soo How (secretary), Ron Loh Chin Chuen (assistant secretary), Lau Eng Sim (treasurer); Committee members: Datuk Chan Fock Seng, Datuk David Fong Chin Chong, Datuk Seri Dr Lee Ville, Kelvin Ong Choon Kiat, Ooi Khang Chow and Ng Chin U.

Source: Buletin Mutiara

The widely debated Vacancy Tax on unsold high-end properties will likely not be imposed next year as it is still being reviewed by the Housing and Local Government Ministry (KPKT).

Minister Zuraida Kamaruddin said the proposed tax, which has been presented to the Economic Council meeting for discussion, is not an urgent matter for the ministry to resolve.

“We are reviewing it and it is not our priority currently. Let the developers manage it.

“The Vacancy Tax idea only came around when we thought about unsold high-end properties…and it is not going to be implemented in 2021, we have other mechanisms,” she said.

She was speaking to reporters after launching the Cagamas SRP Bhd’s Digital Skim Rumah Pertamaku (Digital SRP) here today.

According to Zuraida, there are currently 29,000 unsold high-end units worth RM29 billion ringgit.

She said KPKT’s utmost priority is to ease house ownership for the people.

“We want to make sure that the B40 and the M40 income groups will be able to purchase houses in a much easier way through the banks,” she added.

Source: The Edge Market

The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) has decided to maintain the Overnight Policy Rate (OPR) at 1.75 per cent, the lowest level since it was implemented in 2004.

In a statement, it said the global economy continues to improve, with the easing of containment measures across more economies and strong policy support.

“The re-opening of production facilities has led to a resumption of manufacturing and trade activity, however, the recovery in the services sector has been slower. Financial conditions have improved, although risk aversion remains elevated.

Penang has spent more than RM256mil on maintenance projects involving public housing, local government housing and eligible private housing schemes since 2008.

State housing committee chairman Jagdeep Singh Deo said the amount includes public housing maintenance scheme (RM195mil), state’s Housing Maintenance Maximum 80% Fund (TPM80PP) (RM35mil) and also the maintenance schemes under both local councils (RM25mil) as of September this year.

“Under TPM80PP, the state government has spent RM35.36mil covering 240 applications involving 393 projects.

“The highest scope of work is upgrading or replacing elevators, which accounted to 215 projects, ” he said at a press conference at Mutiara Heights Apartments in Jelutong on Sunday.

Jagdeep added that the state had approved applications for the upgrading of 10 lifts costing RM310,000 at Mutiara Heights Apartments.

“Under the TPM80PP, the joint management body will have to fork out 20% of the project costs to qualify for the 80% state subsidy.

“The JMB will fork out RM62,000 and the state will provide RM248,000.

“The project began last month and is expected to be completed by Feb 8, ” he said.

Mutiara Heights Apartments has two blocks with 1,075 units and was built 16 years ago.

There are 10 lifts and four of them are faulty most of the time.

Meanwhile, Jagdeep also said that the state government is considering increasing the number of affordable housing schemes in view of the current unhealthy economic situation brought on by the Covid-19 pandemic.

“Due to the movement control order, the economy is affected and so has people’s buying power.

“The state government’s target is to provide 180,000 affordable housing units by 2030.

“I have discussed matters with the Chief Minister and we are still in the planning stage.

“We will make an announcement soon, ” he said.

Also at the press conference were Jelutong MP RSN Rayer, Sungai Pinang assemblyman Lim Siew Khim, resident association chairman Muhd Arshad Abdul Rahman and IM Global Property Consultants Sdn Bhd property manager (northern region) Khairuddin Ahmad Khalil.

Source: TheStar.com.my