House buyers seeking an abode under the People’s Housing Project (PPR) will be able to secure a roof over their heads through the Ministry of Urban Wellbeing, Housing and Local Government’s rent-to-own scheme starting this year.
Deputy Minister Datuk Halimah Mohd Sadique said the rent-to-own scheme will be implemented for PPR houses in Kampung Hassan, Lembah Subang 2 and Ladang Seliau, adding that other projects considered by the ministry would be decided by the cabinet soon.
This initiative is targeted at homeseekers from the B40 (bottom 40 per cent income group) who are eligible for PPR but cannot secure loans from financial institutions due to their inability to produce proper documentation or simply deemed too risky for a loan.
When asked if there was an opportunity for younger citizens to own a PPR unit which tenants did not intend to purchase, Halimah said that the scheme is fairly new and thus the ministry would invite qualified buyers for a briefing session on hire purchase scheme, submission of bids, rentals and so on.
Under the rent-to-own scheme, potential buyers would be given a probation period as well as a 10- to 25-year loan with low interest rates, while those eligible for the scheme would be allowed to rent a PPR house for two years.
She said that if they are able to pay the rent for the next two years and adhere to the conditions laid out by the National Housing Department, they will then be included in the rent-to-own scheme.
Meanwhile, the rent-to-own scheme is only open to Malaysian citizens that have a household income of less than RM 2,500.
Halimah added that the ministry is proposing that the cabinet expand the criteria to include households that earn less than RM3,000 a month and first home buyers.