THE bottom 40 earning household groups (B40) need a special financing scheme in order to buy their own homes, the Real Estate and Housing Developers Association (Rehda) said.

Its president Soam Heng Choon said it was discussing how it can play a role in this regard with the government and with financial institutions.

Soam also questioned the progress of government policies in the past, such as rent-to-own schemes to help the poor own homes.

“We are coming to the next budget now, and we have not seen many things taken off like the rent-to-own scheme,” he said, referring to the scheme launched in September last year by Housing and Local Government Minister Zuraida Kamaruddin.

“Some of them (buyers) are employed in the gig economy, whose incomes are not stable,” he added.

He was speaking at Rehda’s press conference today on an upcoming housing expo.

Soam also said banks should help the B40 group with financing and also to ensure information on financing products was widely disseminated to potential buyers. 

More banks should provide schemes where interest is paid only for the first five years, he added.

“After five years, you start paying the principal loan along with the interest. 

“At the end of the tenure, the total quantum you pay up – principal plus interest, is more or less the same.”

The upcoming property expo – the Home Ownership Campaign-Malaysia Property Expo 2020 will be held at the Mid Valley Exhibition Centre from October 2 to 4, with 35 exhibitors including developers, financial institutions and government agencies. 

On how the property sector was faring after the easing of movement restrictions due to the Covid-19 pandemic, Soam said sales were “normalising”.

Though the second quarter showed a drop, the next quarter can be expected to pick up, he said.

“We are being cautiously optimistic, provided there is no second or third wave of the pandemic,” Soam said. – September 30, 2020.