AFFORDABLE HOUSING SCHEME – BUDGET 2016.

AFFORDABLE HOUSING SCHEME – BUDGET 2016.

Under the Malaysia 2016 Budget, the government will built about 350,000 afforable housing which will be sold 20% below the market value. The target location will be surrounding the development of the Light Rail Transit station and the monorail station.

In the RRIMA website, it is stated in Kland Valley, PRIMA housing are available in Bukit Bintang, Bukit Jalil, Cyberjaya and Brickfield. Prices start from RM250,000 and above. A total of 4000 units of apartment are offer from these 4 project.

The advanatages of this program is that the partner end financing bank will be able to finance the interest during the construction of the poperty and loan up to 110% of the Sale & Purchase price will be approved for eligible applicant.

The question is do we actually need so many unit as we term as afforable housing? Do the population or the “rakyat” really facing difficuties on buying a property for them to stay in? Is there no afforable houses available in the market right at this moment?

Secondary market of such property are still available for those that need to purchase a property for own stay. Places like Bukit Antarabangsa, where apartment of 1000 sf start from RM180,000 and a condominium unit is from RM250,000. A double storey house is available for sale from RM500,000. Bukit Antarabangsa a serene and highland location with KLCC just about 15 KM away are still a steal.

Shah Alam Section 25 is also a location surrounded by highway such as KESAS & LKSA connection almost all he way to Kajang and KL in one breeze drive. Housing that available are 2 storey 20 X 60 with prices starting from only RM300,00 and the smaller 3 storey 15 X 55 are from RM250,000.

There are just too many of such secondary housing available and why the need to built more? Why are people not buying from these market? To my observation, there are a few hurdles that these buyers are facing. First of all, with the local bank tightening their lending citeria, most of these buyers do not have sufficient down payment to make it for the 10% whichmost of the seller will insist on receiving it upon the signing of the Sale & Purchase Agreement. The buyer in actual fact probably have enough money in their EPF account 2, but EPF are unable to process the withdrawal without the copy of the SPA.

The houses in the secondary market are also not new  and in need for some form of repair and maintenance. With minimum cash available, these buyers cannot afford to fork out money for such job need for the house.

It will be good if there is an agency who can registered the sellers which is in the afforable housing price tag and introduce it to protential registered purchasers with the services to assist in housing loan with repair or maintainence package attach together. Many people will be able to own a house that can be call home.

PROPERTY INVESTMENT IS FOR EVERYONE.

According to report released by The Valuation & Property Services Department and the Ministry of Finance for year 2014, the property market recorded a total 384,060 transaction worth RM162.97 billion. Report by Mundi Index, “ Malaysia Demographics Profile 2014, 41.2% of the total Malaysia population are from the age of 25 to 54 in which has the total of 12,392,000 million people. By the look of it , only 3.09% of these possible working, income drawing Malaysian are buying properties.

The beauty of Malaysia is, we have a diversified type of property and prices range to choose from. From a simple flat that cost RM80,000 right up to the price tag of  hundred of millions.

As an investor, there are a simple formula to follow for the success of investing in property. First of all, the investor must be able to display a high level of dedication in their level of saving what we call the “first basket of gold”.

Once this little saving that be achieve, buy only those property that can be bought with that amount of money saved, ignore temptation of looking at others that out of your budget. Most of the time, what you had and can buy does not mean what you like or want. You might be disappointed by what you can afford and put off buying to a near future when you had save more. Try to stick to your plan and start again the saving process once you pen down your first purchase. The future for an investor is buying more.

Find the property nearer to you for easy management. With our hectic and busy lifestyle, good management is very important to the investor morale and spirit. If the first investment is easy and breezy, the investor will be motivated to continue investing. If the property is nearer to you, it make it easy for the investor to collect rent, take a look at the property , arrange for repair or arranging for viewing to propestive tenant.

So, if you are the 96.91% of propestive investors, hurry, save and invest ! Don’t missed out on the best investment portfolio in your lifetime …. Invest in property around you.