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Madani Deposit, interest coverage by developers should only apply to affordable housing with controlled prices — Rehda

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Publish date: Mon, 26 Aug 2024, 01:18 PM

KUALA LUMPUR (Aug 26): The Real Estate and Housing Developers’ Association (Rehda) has suggested that the proposed Madani Deposit and the initiative for developers to cover buyers' loan interest during property construction should only apply to affordable housing with controlled prices.

Therefore, the proposed measures by the Ministry of Housing and Local Government, which were submitted to the Ministry of Finance (MOF) recently to be included in Budget 2025 to be tabled in Parliament on Oct 18, would have no impact on the pricing of affordable housing, Rehda said in a statement on Monday.

Affordable housing with controlled prices refers mainly to government housing projects such as Rumawip and Rumah Selangorku. 

Last week, Minister Nga Kor Ming said that the planned Madani Deposit aims to provide up to RM30,000 in deposit assistance for first-time homebuyers, helping to alleviate the monthly payment burden, particularly for young buyers in the bottom 40% and middle 40% income groups.

The ministry also proposed another initiative to ease homebuyers' financial concerns beyond their bank payments. Similar to the Developer Interest Bearing Scheme but with stricter criteria, this plan allows buyers to save more by having developers cover interest costs during construction, helping them manage other expenses like rent.

Both schemes are part of the 33 initiatives that Nga's ministry proposed to the MOF for Budget 2025.

Rehda expressed support for the ministry's initiatives, noting that the proposals would benefit future homebuyers and further stimulate the property industry.

“This initiative, if announced during the Budget presentation in October, will greatly assist more Malaysians in owning homes, thus meeting the government’s aspiration for every citizen to have a place to live,” said Rehda president Datuk Ho Hon Sang.

Ho also expressed hope that Budget 2025 will bring positive news for the industry, and reaffirmed Rehda's commitment to providing quality, affordable homes for the nation. 

 

https://www.theedgemarkets.com/node/724196

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