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citizens up to the age of 35.
* Single borrower’s gross
income not exceeding
RM5,000 per month/joint
borrowers’ gross income not
more than RM10,000 per
month (Note: Joint borrowers
can only consist of husband
andwife or siblings).
* Property valued between
RM100,000 and RM400,000.
* Propertymust be owner
occupied upon purchase.
* Instalment payment via
monthly salary deduction.
* Compulsory fire insurance/
takaful.
* Financing tenure not
exceeding 35 years, subject to
borrower’s age not exceeding
65 years at the end of the
financing tenure.
* Amortising facility with no re-
drawable features.
B] My 1st Home Scheme-i
Offered by the Malaysia Building
Society Berhad, a subsidiary of the
Employees Provident Fund (EPF),
this scheme is exclusively for first-
time house buyers. While the
propositions are attractive,
payments still need to be made at
the end of the day and interests and
terms/conditions need to be met.
With this, it is recommended that
one review the schemes offered
and commit to one where
BY
SHEERA SALIM
W
HILE
last weekwe
exploredways and
means the government,
through the
development of various
programmes, has helped to fulfil its
“one house per household” pledge,
this weekwe highlight twomore
schemes to aid the first-time and
Gen-Y house purchaser, plus
matters tomull over before signing
the dotted line.
Adults nowadays facemany
challenges, especially if they are just
stepping out into the working world
and being facedwith daunting
decisions like purchasing their first
vehicle or a place of their own. As a
twenty-something graduate living
inMalaysia, Sheera relates to the
heavy burden and expectations
having tomake rational andwise
decisions. So howdoes a first-time
loan applicant make any rational or
wise decision, having not made one
in these areas before?
With that inmind, Sheera
recommends one use
Property
Buying for Gen-Y
by Khalil Adis as a
guide. In the book, the writer
highlights a lot of important and
crucial information, particularly
helpful for young and first-time
property buyers.
NOTES FOR THE
MILLENNIAL
While a common purchase a
millennial would first splurge on is a
car, for transportationwhen
stepping into the working world,
buying a house wouldmost likely be
the next significant purchase in a
young person’s life, if not a wedding
loan or, for themore enterprising, a
business loan. As amatter of fact,
while buying a car is considered a
liability, buying property can
become an income-generating asset,
provided one knows how tomake it
churn profits.
In his book, Adis, who is a
property consultant, author, writer,
speaker and an entrepreneur,
highlights a recent finding
conducted by the Asian Institute of
Finance (AIF). Apparently, 70%of
Gen-Y are facingmoney issues or
are in bad debt. This is especially so
with the rising costs of living, along
with all the “basic necessities”
neededwhen stepping into the
employment sector.
Says Adis: “The onlyway to beat
inflation and currency depreciation
is to invest in property. If you do not
‘lock’ yourself with a property now,
youwill forever be at themercy of
inflation and rising costs of living.”
But when does one even start to
think about buying his/her first
property, especiallywith prices
continuously escalating?While the
idea of owning a propertymay
sound like a far-fetched dream for
many, Adis says help is aplenty
especially for first-time andGen-Y
house buyers. Still, he advises: “Be
patient and look for the right piece
of property. Don’t rush. Think it
through and look at all the
important aspects.”
GOVERNMENT-ASSISTED
SCHEMES
In its pledge aimed at seeing each
househould owning a house and its
intention to help the younger
generation become first-time
owners of their very own property,
the government offers house
ownership schemes to young adults
and those with a foot in the working
arena.
A] My First Home Scheme
While last week we looked at the
much talked about PR1MA, this
week we look at My First Home
Scheme, or SkimRumah
Pertamaku (SRP). The scheme
announced in the 2011 Budget
allows young owners to obtain
100% financing frommonetary
institutions and banks via
conventional and Islamic financial
schemes.
Terms and conditions:
* 100% financing (no
downpayment required).
* Valid for residential properties
inMalaysia only.
* Applicable toMalaysian
Terms and conditions:
*Malaysian citizens aged 21 and
above (nomaximumage).
* First-time home buyer within
one household family.
* Earning gross household income
of belowRM10,000 amonth
(including all other income and
allowances etc.).
* Valid for properties priced
RM500,000 or less.
* The government/scheme helps
first-time home buyers cover the
10%downpayment or maximum
RM30,000, whichever is lower.
PROPERTY DIRECTORY
Before signing on the dotted line for
your first owned property, Adis
suggests you ponder if it is an
investment asset or home you are
looking for. Refer to his book for
reasons to think this through,
including its effects. Next, he
advises one tomake a realistic list
weighing the pros and cons of each
possible property.
To ease the decision-making
process onwhat to consider before
deciding on a particular house
purchase, here are some points to
take note of.
Location, location, location
If a new township is what you are
interested in, upcoming
masterplan and transport
networks can tell you howmuch
potential your property is able to
offer in terms of capital
appreciation in the long run. For
areas that have reachedmaturity,
look out for potential
rejuvenation programmes that
can boost the area.
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One house
per
household
> Information for first-time andGen-Y house buyers
PART2
instalments are comfortable
provided one’s career is pretty
much permanent or income is
secure.
Terms and conditions:
* First-time house buyer.
* For residential properties
ranging between RM100,000
and RM500,000.
* Malaysian citizen aged 40 and
below.
* No maximum income limit.
* Subsidised legal and valuation
fees up to RM6,000.
* Financing tenure up to 35
years or age 75, whichever is
earlier.
* Margin of financing up to
105% inclusive of “mortgage
reducing term takaful”
(MRTT).
* For individual and joint
applicant.
*Must be confirmed employee
engagedwith the same
employer for aminimumof six
months from the date of
employment; and graduate
(degree holder) OR at least
three years’ working
experience for none-degree
holder.
Professional
financial advice
Family, friends &
colleague as
financial advisor
Credit card
borrowing
Average financial
knowledge
Does not pay
credit card on
time
37
60
47
58
45
*conducted by Asian Institute of Finance (AIF)
Percentage
Value drivers
Knowwhere the government is
spending itsmoney in. Such
informationwill help you buy
ahead before the infrastructure is
completed. After a fair bit of
research youmaywonder why
some properties are
extravagantly tagged. The
answer: the prime location of
most highly-priced property are
built near business and
entertainment hubs. Similarly,
Adis shares that the best strategy
is to buy an undeveloped area
that has existing plans for various
economic drivers. As a result, the
value for your propertywill
multiply tenfold once the area
gainsmomentum.
Feel the pulse
To createwealth fromproperty,
Adis emphasises the importance
of checking if the townshipwill
turn into a hive of activities or a
flop. Themore industries a
particular township has, the
higher the chance it has to attract
workers, hence a community/
township, that will directly
increase property value and the
economy in the area.
X
X
C]
MyDeposit Scheme
Announced in Budget 2016, this
scheme aims to assist lower- and
middle-income earners with
household incomes of RM10,000
and below purchase their first
home. Ideal for those trying to save
up money to cover the
downpayment or first-time
property buyers like millennials,
who have just started off their
careers and are credit worthy or
have a clean financial slate (no
debts and not black listed).
21
theSun ON FRIDAY
|
OCTOBER 21, 2016
22
theSun ON FRIDAY
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OCTOBER 21, 2016