Essentially, if your monthly household income is below the RM4,850 mark, you and your family are categorized under the bottom 40% of the population. And clearly, the income gap here is pretty sizeable.
Buying a good property when you’re part of the 40% of Malaysians earning less than RM4,850 a month isn’t the easiest thing to do (obviously!).
Remember, this is the median income for the entire household, not just one single breadmaker! The question is, are there any actions by the government to help the B40 group with housing?
Living on the streets is no laughing matter. So don’t worry, the government definitely isn’t neglecting low income makers! Plenty of measures have been established to help support the B40 group.
Budget 2020, in particular, had heavily emphasised on efforts to help support this segment of the population as well as help elevate the M40 group.
Healthcare-wise, there’s PeKa B40 and mySalam, but how about housing though? Here are 4 initiatives by the government that aim to assist Malaysia’s B40 population with housing!
1) Bank Negara’s RM1 Billion “Fund For Affordable Homes”
Heard of this fund before? Earlier this year, Bank Negara Malaysia announced the establishment of Fund for Affordable Homes, a measure which aims to help the B40 group nationwide to afford housing.
So…what exactly does this magical fund mean for B40 homebuyers looking to receive financial help with buying a property?
Extended loan repayment period up to a maximum of 40 years, or until the applicant reaches 70 years of age
Financing rate of up to 3.5% per annum (which is incredibly low – most are at least 5%!)
But as always, there are specific criteria for applicants and the properties they’re looking to purchase.
You have to be a Malaysian citizen with a monthly income of no more than RM2,300 and no record of impaired financing in the past 12 months.
To ensure the fund is benefiting those who really need the financial help, this also only applies if you’re buying a property of RM150,000 and below.
The full list of criteria is a little lengthy, so check it out here!
Participating financial institutions include Ambank, BSN, CIMB, Maybank and RHB. Interested applicants can directly contact any of these banks to apply!
2. RM100 Micro-Homes For Single Malaysians
Familiar with Hong Kong’s micro-apartments? Not forgetting the youngsters, a lifeline has also been established for the single adults of the B40 population.
Thanks to DBKL, shophouses on Jalan Tuanku Abdul Rahman are in the midst of being transformed into micro-homes available for rent at only RM100 a month!
By no means will they be luxury 5-star rooms of course.
But with a communal concept featuring shared prayer rooms, launderettes, toilets, pantries and parking spaces for both motorcycles and bicycles, who could possibly ask for more?
At a rental fee of just RM100 no less, this generous housing scheme is aimed at unmarried, low income young Malaysian citizens between the ages of 18 – 28.
So if you fulfill these criteria, have an income of less than RM2,000, work in KL and don’t possess the luxuries of a car and house, these micro-homes might just be the good news you’ve been waiting for all year.
Applicants were able to start their application process online via this link here since August 2019.
3. Exemption Of Stamp Duty For First-Time Homebuyers
We weren’t kidding when we said that Budget 2019 was really focused on helping the B40 bracket with housing. Case in point:
Stamp Duty Exemption:
For first-time homebuyers purchasing properties below RM300,000, you don’t have to pay a single cent of stamp duty!
Don’t know what stamp duty is? We’ve got your back – this helpful article will tell you all you need to know!
Here’s What It Would Normally Cost:
1% for the first RM100,000
2% for subsequent RM100,001 to RM500,000
3% for subsequent RM500,001 to RM1 million
4% for subsequent RM1,000,001 and above
This would mean that if you’re buying a property at RM300,000, you’d have to pay RM5,000 for the stamp duty alone!
If you’re part of the B40 group, this exemption can be a pretty huge help in reducing the hefty upfront costs involved in buying a house.
4. 10% Discount on Properties Below RM150,000
What do you get when you combine an initiative to increase home ownership and a need to tackle the enormous amount of excess unsold units in the market?
Well, that’s where the Home Ownership Campaign 2019 (HOC 2019) came in! HOC 2019 was a year-long campaign which ended on 31 December 2019.