Johor’s financial help for affordable housing inadequate, says rep

JOHOR BAHRU (Dec 1): The state’s RM3 million budget to help Johoreans buy their own homes is underfunded, Opposition assemblyman Ee Chin Li (DAP-Tangkak) has said in response to Housing and Local Government chairman Abd Latiff Bandi’s winding up speech on the Supply Enactment 2016 at the State Assembly session on Sunday.

“The government will allocate RM3 million in a home ownership financing scheme for those who are unable to obtain bank loans for affordable housing in the RM42,000 to RM80,000 price range,” Ee said.

“This is a minute amount in comparison to the demands for this type of housing.

“It means that only 3,750 eligible applicants can buy the RM80,000 houses and 7,142 for the RM42,000 units,” Ee said in a statement today.

Other than the state government’s financial assistance for affordable housing, there are two other types of properties geared to help Johoreans have a roof over their heads: low cost properties on a rent-to-own scheme and short-term temporary rental transit apartments for young families waiting for their own homes to be completed.

These ‘for-rent-only’ transit apartments, or Rumah Iskandar Malaysia, are available for RM500 to RM700 a month.

Ee said the Opposition coalition did in fact welcome the state government’s plan to build ‘rent-to-own’ low cost housing schemes, which will be offered to those unable to pay monthly instalments at commercial rates.

“We hope the state government will build more of these properties across Johor, where there is demand together with the transit apartments,” he added.

“Young adults are finding it difficult to own homes because their incomes do not qualify them for housing loans from banks,” Ee said.

“However, even if they receive bank end-financing, with low salaries (in Johor) the question still is: will they be able to meet the monthly payments when coupled with other commitments like repayment of education loans?” Ee asked. -- The Malaysian Insider

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