Saturday, January 5, 2013

Chor: Easing of condition to help the young own property


PETALING JAYA: The move to further liberalise conditions for the My First Home scheme is to make it easier for young working adults to own their first property, said Housing and Local Government Minister Datuk Seri Chor Chee Heung.
He said young adults who just joined the workforce, especially those in the Klang Valley, Penang and Johor, would need a permanent place to stay.
“I believe that with this new move, more young people will take up this scheme to fulfil their dreams of owning their own property,” said Chor, adding that renting was not justified because they would not eventually own the property.
Under the new conditions which came into effect on Jan 1, young adults can apply for loans to buy houses immediately after getting jobs. Previously, they had to work for at least six months before they could qualify.
The requirement to have a minimum savings record of three months in banks had been axed while the income limit of borrowers was raised to RM5,000 from RM3,000 previously.
For joint borrowers, the income limit had been increased to RM10,000 from RM6,000.
Describing the move as “one of the best news” for young adults, Chor said this showed that the Government had their interest at heart.
On whether such a move would get more young people in debt, he said this was one of the Govern­ment’s initiatives for them to own their homes and “no one was forcing them to buy”.
Beauty writer Samantha Chow, 23, said she would stick to her five-year plan to buy a condominium.
“I know what I earn and how much I can afford. I do not want to be in debt,” she said.
Account executive Yong Li May, 23, said she had no immediate plan to buy any property, adding that she would need to find out more about the scheme.
“At the end of the day, it depends on affordability as I do not want to pay high instalments,” she said.
However, National House Buyers Association secretary-general Chang Kim Loong claimed that the move would encourage impulse buying, which might lead the youths into debt at an early age.
“The Government should not be seen as marketing agents for developers or promoting financial obligations for banks. Youths should not be bound into debt so young for the next 25 to 30 years,” he said. - The Star

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