Extend rent-to-own scheme to Residensi Wilayah Keluarga Malaysia buyers

KUALA LUMPUR, June 21 (Bernama) -- The government has been urged to extend the rent-to-own financing scheme which currently only involves the 1Malaysia Housing Project (PR1MA) to prospective buyers of Residensi Wilayah Keluarga Malaysia.

National Housing Tenants Organisation (NHRA) chairman K. Prakash said the expansion of the scheme would help potential buyers who could not afford to rent their dream home in advance until they were able to obtain financing to buy a house that has been inhabited.

“NHRA hopes that the government can impose a restriction or moratorium on resale and rental for a period of at least 10 years so that buyers do not sell or rent out this house to any party.

"It is in line with the government's intention to help the B40 and M40 groups to own a Residensi Wilayah Keluarga Malaysia house by providing subsidy to reduce the sale price of the house," he said in a statement today.

According to Prakash, approval to own a Residensi Wilayah Keluarga Malaysia house should only be given to first-time home buyers and people with less ability to buy a house at market prices.

Apart from that, he said the local authorities also need to make regular enforcement to prevent houses under the People's Housing Programme (PPR) from being rented out to others, especially to foreigners.

"The results of NHRA's observation found that most PPR house owners who received government subsidy to own the house have taken the opportunity to rent to foreigners..

"Actually, the government created the PPR house concept to help the poor own a house and not to be commercialised or rented to others," he said.

He hoped that the issue could be addressed with the enforcement of clear conditions, rules and laws to prevent the rental and sale of PPR houses with the Residential Rental Act being enacted by the Ministry of Housing and Local Government.             

-- BERNAMA