16/10/2020
Everyone dreams of buying a home they can call their own. But with the increasing properties prices, it is a challenge trying to own a property if you belong in the B40 and M40 income group.
What are the terms B40, M40 and T20? Well, Malaysian citizens are classified into three main income groups: Bottom 40% (B40), Middle 40% (M40) and Top 20% (T20) according to their median monthly income per household.
If you happen to belong in the B40 and M40 group, you’ll be pleased to hear that the government has launched various housing schemes aimed at assisting these groups. Below are some of the housing schemes catering to the B40 and M40 groups.
1. Youth Housing Scheme by Bank Simpanan Nasional (BSN)
BSN MyHome or Bank Simpanan Nasional MyHome is a homeownership scheme targeted towards first-time homebuyers aiming to own their very first home.
Under the Youth Housing Scheme, BSN will be providing financing from RM 100,000 to RM500,000 with a tenure of 35 years, or until the age of 65 (whichever comes first).
This scheme is only open to first-time home buyers, single and married youths aged between 25 to 40 years old, with a household income not exceeding RM10, 000 per month.
The government will also aid by providing monthly instalments of RM200 per month for a period of 2 years. The instalments will be credited to the customer’s financing account from the date of the first disbursement.
2. Rent-to-Own (RTO) Scheme
Rent-to-Own-Scheme (RTO) was tabled during Budget 2020 caters to homeowners who have difficulties in putting down the initial 10% down payment.
Applicants are able to rent up to 5 years and will have the option to purchase the house in the sixth year. The buyers will be able to lock in the original property purchase price for when the lease was first signed.
This scheme is only applicable for first-time homebuyers, and for properties priced up to RM500, 000. Other than that, the government will also provide exemptions on stamp duty for SPA and loan agreement.
This scheme is suitable for the B40 and M40 group who are struggling to pay the initial 10% down payment.
3. Youth Transit Housing (MyTransit) by KPKT
The Ministry of Housing and Local Government (KPKT) introduced the Youth Transit Housing (MyTransit) aimed at providing housing for single and married youths in the B40 and bottom M40 range.
The difference between the MyTransit scheme and other schemes is that it provides properties for rent instead of for purchase. The rental rate for these properties is promised to be at least 20% lower than the market rate.
Another element that makes this scheme stand out is the ‘forced savings’, a percentage of the monthly rental will be set aside and returned back to the tenant as a lump-sum after their maximum five-year stay.
This scheme will see 2,010 studio home units being built in Mukim Batu and Kepong, Kuala Lumpur, with the estimated completion date in 2022.
4. Rumah Selangorku (RSKU)
Rumah Selangorku is a low-cost housing scheme designed to assist the B40 and M40 groups who are interested in purchasing affordable housing within the state of Selangor. This scheme is catered for first-time homebuyers only.
The properties under this housing scheme include high-rise apartments and landed houses with prices ranging from RM 42,000 to RM 250,000. There are five housing types A, B, C, D, and E with different eligibility criteria based on the applicant’s monthly household income.
The maximum household income (married couple) must not exceed RM 10,000. For a single individual, the household income must not exceed RM 3,000 per month. Since the housing scheme is designed for the B40 and M40 groups, there are certain rules that potential buyers will need to follow such as:
The property cannot be sold within 5 years of purchase.
The owners are not allowed to rent out the property.
Applications are active for two years.
After two years, if not successful, applicants may apply again.
We hope this has helped you in deciding which housing schemes is the most suitable for you and your family. With your income, you are be able to own a house you can proudly call your own.
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