1) Residensi Prihatin – Apartment that cost RM 200,000.
Pros
- Mortgage payment – Average RM 775 for 100% financing, 35 years
- Controlled Pricing for Additional Parking Lot – RM 15,000 for tandem parking lot & RM 18,000 for side-by-side parking lot. (Maybe able to be included in loan)
- Controlled Pricing for Maintenance Fee – 12 Cent per SQFT (Very cheap)
- Booking fee cap at RM 1,000 & must be FULLY REFUND if transaction fail with or without valid reason.
- Age 18 & Above eligible to purchase.
Cons
- 750 SQFT (Small)
- Quality – QLASSIC Score (Residensi Wilayah Sky Awani achieve 79% QLASSIC Scoring). Apartment costing RM 200,000 will be impossible to build with such quality as MOST if not all Residensi Wilayah costing RM 230,000 have bad reviews online. BUT it is clearly written that it is compulsory be at least 70% in QLASSIC scoring without mentioning any penalty if developer fail to do so.
- Limited choice in location (Currently 2 project, all in Putrajaya)
- 20,000 out of the 40,000 units built in the beginning will be reserve for MAF (Malaysian Armed Forces), you have to be quick to apply.
- Lower chance in Capital Gain, there is tremendous amout of land in Putrajaya.
- Not allow to be sold within 10 years after S&P signed. (EXCEPT TO SPOUSE OR CHILDREN)
- Gross income of individual/with family inclusive of allowances MUST NOT EXCEED RM 5,000 (Only cater to low income group)
- MUST BE FIRST TIME HOUSE BUYER
- NOT CLEARLY WRITTEN in Dasar Residensi Prihatin whether is it allow to be rent out
- As for self employed, company gross income above RM 5,000 for any month out of the latest 3 months bank statement submitted will be rejected. Calculation of income not based on the average income for the last three months or taking in consideration of the cost of running the business. (based on previous application for Residensi Wilayah result)
- Normal unit will only include one parking lot
- Bare unit, owner must spend a substantial amount of money for renovation.
For more information, please visit https://residensiprihatin.kwp.gov.my/
(As of 29 March 2021, there is not one project that have launch)
2) RUMAWIP (Rumah Mampu Milik Wilayah Persekutuan) or now known as Residensi Wilayah Keluarga Malaysia – RM 300,000 and below
Pros
- Mortgage payment still consider relatively low. Average RM 1,200 for 35 years loan.
- Second homebuyer allowed as long as self or spouse do not own any property in Wilayah Persekutuan.
- Variety of choice in terms of location.
- Some projects are walking distance to train station.
- Clearly written in Dasar Residensi Wilayah that it is illegal to be rent out to foreigners within 10 years after signing SNP, which means it is legal to be rent out to Malaysians. It can turn out to be a good investment!
- Size is from 800-900 SQFT, it is possible to get a decent size.
- Individual gross income of RM10,000 and below & household gross income of RM 15,000 is eligible to apply.
- Some of the project facilities are really impressive for the price paid.
- Extra 2 13A Switch Socket Outlet compared to Residensi Prihatin (Maybe useful)
Cons
- Not allow to be sold within 10 years after S&P signed. (EXCEPT TO SPOUSE OR CHILDREN)
- Most of the project won’t be 900 SQFT
- Income of RM10,000 and above for any month out of the latest 3 months salary slip submitted to KWP will be rejected. Calculation of income not based on the average income of three months.
- As for self employed, company gross income above RM10,000 for any month out of the latest 3 months bank statement submitted will be rejected. Calculation of income not based on the average income for the last three months or taking in consideration of the cost of running the business.
- Normal unit will only include one parking lot.
- Need to self-study on the developer background as project qualities can be bad or really good.
- Bare unit, owner needs to spend substantial amount of money for renovation.
Both RUMAWIP (known as Residensi Wilayah) or Residensi Wilayah did not clearly make it a requirement for certain material brand to be use, for example the wiring should be using Mega Cable or at least must be SIRIM approved and the tap by DOE. Buyer best chance is to research on developer track record in order to get the best bargain. The pandemic definitely have cause most if not all developers to cut cost of materials used sacrificing the quality.
3) Maybank Houzekey Project
This is NOT a government effort. Package can be change more frequently.
Pros
- Bigger size unit and many options
- Better facilities
- Higher quality
- Plenty of projects to choose from
- No salary cap to go for this
- More likely a long term house (bigger space, more parking space)
- Parking can be single, double or more (Can be included in loan)
- Can let go of it after five years if you wish not to purchase it
- Can purchase it after one year of vacant possession.
- Low upfront cost
- No need of progressive payment during construction
- Monthly payment is only after vacant possession, based on 60% of property price for the first 5 years
- Can sell off after you purchase it without any form of restriction
Cons
- Higher installment compared to the government initiative such as RUMAWIP or Residensi Prihatin.
- After five years installment can be double (First five years is similar to renting a house from Maybank which you will own in the future, so instead of paying rent to someone else; you reserve your dream house with renting from a bank)
If you are interested to know more, please click to inquire.
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