Great news for first time home buyers! For those incomes below RM3000 no need to make 10% down payment on house purchased as they can obtain 100% full loan. It brings more benefits to those low income group and fresh graduates who face difficulties in buying their house.
Under this My First House Scheme (Skim Rumah Pertamaku), the 10% down payment will be guaranteed by Cagamas Bhd for houses purchased below RM220,000.
Another good news is house buyer will enjoy 50% on stamp duty exemption for house priced below RM350k. So, basically our government increase it from RM250k-350k. Refer to my previous article 50% Stamp Duty Waiver For House Purchased. However, I’m not sure whether this initiative will speed up the bursting of the housing bubble or not, so we will see.
Drawback of 100% Housing Loan For First Home Buyers
If 100% housing is given to the buyer, then they may have higher monthly installment as the loan amount is higher too. Thus, they may face financial burden.
My Questions:
If let say Mr. M have made deposit for booking the house but still not sign SPA. and he will be signing next year after the project start (assume February 2011), then would he deserve to apply this scheme?
Do you think will property price be increased since now many people can buy house?
For youngsters who “need” to loan the mortgage at 100%, it is better for them to do an indeep analysis to find out whether they are “qualified” to buy the first house.
RM220K only suffice for medium-cost apartments these days. Capital appreciation of these property type won’t be much indeed.
A wrong decision will just make one into a “house slave”.
What are the implications?
– pushing low-medium property price up?
– create demand?
– create more “house slave” as suggest by Anti
– Bank earns more interest?
– Heavy installment?
– Encourage the young no need saving?
Don’t feel like it is a good policy…
First time home buyer should utilize the scheme wisely! Hunt for a medium cost apartment to earn rental income!
nowadays property are so expensive buying a terrace surely cost u more than rm350, still no way to get a house for youngster even condos now are expanding! i know fresh graduates shouldnt think more than wat they can afford but buying a property also need to think long-term. if u buy a mid or a low cost house, in future wanna sell is also hard and the interest of bank is not little. now mid-income surely very hard to get a property cause property really boost like crazy these few years especially in Pj area! is just my opinion and i can feel how the market change now. any opinion?
For the “first time home buyer” who is able to still earn rental income, he can only be those still living in family house and need not pay any rent.
even now the rental of a condo is almost a fresh graduate’s income…aiz sad man:(
I have done some analysis based on the assumption of income of 3k and property value between 100k to 220k.
Check my blog for detail at askchong.com
In short, property price below RM100k may be in high demand due to loan-income ratio.
Nowaday really hard to find a terrace house below 220k. 220k really not much help. If 300k still can cover some area at selangor but is second hand unit. The market now like crazy, price keep going up until ppl feel scare. I plan to buy house after 3 years. But now, i decide to buy already. scare later more worst. 500k only can buy a terrace. pening~~~
@Alice Chen
If more people are like you… the bubble will formed and burst faster than expected.
actually first hand or second hand property is not really important. even some second property is damn expensive like TTDI. in current situation, we cant really do anything unless government makes more moves. i think better u find ways to earn extra income than getting a property so fast bcuz u might end up regreted. unless u have more money to cover then is ok, choose a right property and invest now is the best because sooner will be more expensive.
@TT 20.10.2010
I don’t quite understand why a fresh grad will rent a condo as high as his/her income. There are plenty of affordable rent condo / apartment. Further, one may just rent a room than rent whole unit.
@TT 22.10.2010
Don’t expect government to do anything, the government can’t do much – help yourself instead of expecting helps from others. everybody rushing to buy property now…. scary.
sry wat i meant was due to the price of property increase, the rental increase as well. in pj low cost apartment rental nearly to 1k. yea is not as high as a fresh gra’s income but just the rental took 1k n left u 1k plus. some better condo will cause almost 1to 1.5k.
yea, thats y im saying better find ways to earn extra income first. anyway impossible we dont need government’s help if they dont try to help then thos low or mid income will suffer because those rich are investing n selling to earn profit means property will just appreciating. yes of cuz cant expect from government too much but too many low n mid income out there, dont think they got much time to find ways to earn extra income due to working period from 8 to 6, 10 to 10. government did try to help with the policy jsut that cant benefit from it much, property below 220k is really hard to find
Don’t change your lifestyle; Change the government !
I am planing to buy a house next year however I don’t have 10% to pay. Looking for 100% loan. Please advice me more in detail.
@Rina
We all are waiting for guideline from the government.
can somebody tell me if this 100% loan & 50% stamp duty applicable to second hand house but is 1st time buyer?
Pingback: My First Home Scheme (Skim Rumah Pertamaku) | PropertyTradeZone Blog