A new social enterprise programme has been launched by Better Malaysia Foundation (BMF) to help the government address the homeownership aspirations of low-income Malaysians, particularly the B40 households.
BMF founder Tan Sri Vincent Tan explained that the social enterprise will facilitate the development of properties with a low monthly cost of ownership and which are carefully designed for families to prosper and grow, reported Bernama.
He revealed that the foundation has collaborated with Berjaya Land Bhd to design a five-bedroom, four-bathroom show apartment, spanning 900 sq ft, for this initiative.
Tan noted that affordable housing can be realistically priced between RM120,000 and RM300,000 for an apartment measuring 450 sq ft to 900 sq ft in the Klang Valley.
“This price range is achievable with the government support in terms of charging lower land premiums and nominal development charges for affordable housing projects,” he said as quoted by Bernama.
With this, Tan called on the government to implement strategic initiatives that will enable banks and financial institutions to provide 100% financing to B40 home buyers with two-generation housing loans of 40 to 60 years duration so that loan repayments would be manageable and affordable.
Moreover, the home loans of B40 home buyers should also be guaranteed by the government so that the loans may be offered at lower interest rate, added Tan.