the difficulty faced by prospective homeowners in securing housing loans and called out lending institutions to be more lenient in providing financing. While he received a lot of criticisms for his speech, I am personally in agreement with him. Indeed, banks should not simply be rejecting home financing applications. However, certain conditions such as the following must also be put in place.
Alternatively, financial guarantees can also perhaps be provided by Cagamas. If the MOF and financial institutions can contribute even a portion of the financial guarantee, the lending financial institutions will not be exposed to an intolerably high risk of default. At the same time, first-time house buyers would appreciate assistance from the government. House price capped at RM200,000 or RM250,000 can be enforced for this scheme to mitigate the effect in case of default.
As such, for this special affordable housing scheme, the government should also make efforts to waive or reduce charges typically borne by housing developers. Similarly, utility providers such as Tenaga Nasional Berhad and Indah Water Konsortium should only be allowed to charge the costs that they incur for extending infrastructure into the new development area, and not to make a profit from the development initiative for this scheme as argued by Rehda’s president.
For this special affordable housing scheme to succeed, every party must practice open books, showing all their costs and profits. The National Housing Department director-general for the Ministry of Housing and Local Government, has pointed out that the utility providers have already taken the initiative to demonstrate their costs. The onus is now on housing developers to up their game.
Who is going to be the guarantor? Guan Eng? 🤔
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Source: fmtoday - 🏆 5. / 72 Read more »