For those in Malaysia who belong in the B40 and M40 income groups, owning a comfortable home is not an easy task. Luckily, there are a few housing schemes that can help!
We all know the adage: “There’s no place like home”. In fact, it is a goal of many living adults to own their own home. However, we know that the prices of houses are not cheap, especially if you live in the Klang Valley.
Luckily, there are a few housing schemes aimed at assisting those in the B40 and M40 income groups. However, these campaigns don’t last forever. So it best that you analyse which suits you and quickly grab your spots!
Which income group do I belong to?
According to data taken from official statistics gathered by the Department of Statistic’s (DOSM) Household Income and Basic Amenities Survey, Malaysians are classified into three groups according to their median household income. They are as the following:
- T20 – Income in the Top 20%. Also known as the Upper Class and has a median income of RM13,148. The actual percentage is 16.4% of the total Malaysian income group.
- M40 — Income in the Middle 40%. Also known as the Middle Class and has a median income of RM6,275. The actual percentage is 374% of the total Malaysian income group.
- B40 — Income in the Bottom 40%. Also known as the Lower Class and has a median income of RM3,000. The actual percentage is 46.2% of the total Malaysian income group.
One common mistake people make is using the median income of each income group as the maximum amount for each category. This is inaccurate since a median is a value separating the higher half from the lower half of the data sample.
The proper income threshold for each group is as the following:
- T20 – RM4,360 and below
- M40 – RM4,361 to RM9,619
- B40 – RM9,620 and above
It must also be pointed out the value is based on household income. Therefore, if both husband and wife are working, their incomes need to be totalled together.
Available housing schemes
If you belong in the B40 or M40 category, the following schemes are meant to assist you in owning your own home:
1.Skim Smart Sewa
A housing scheme specifically for registered voters in Selangor who also work or live in the state. To qualify for Skim Smart Sewa, the combined family income of the applicant must be the following:
- Not exceed RM5,000 per month for Type A house rental applications or low-cost houses
- Not exceed RM15,000 per month with priority given to those with income less than RM10,000 per month for Type B, C & D house rental applicants including medium-cost houses.
This is a Rent-To-Own (RTO) scheme, where a lease agreement states a certain length of time that the buyer will rent the home for. At the end of the agreed period, the buyer can either choose to purchase the property or walk away.
The minimum rental period for Skim Smart Selangor is two years while the maximum is five years.
First introduced in 2014, Rumah Selangorku is designed to encourage and support developers in producing affordable houses. The properties under this scheme include highrise apartments and landed houses. The prices depend on the type of property and range from RM42,000 to RM250,000.
Earmarked for development in key strategic urban areas nationwide, PR1MA is open to all Malaysians with a monthly household income between RM2,500 to RM15,000.
PR1MA homes come in various types and sizes and are priced between RM100,000 to RM400,000.
4.Residensi Wilayah (RUMAWIP)
Targeting first-time homebuyers, a total of 80,000 units of RUMAWIP homes are expected to be built all over Kuala Lumpur, Putrajaya, and Labuan. As the name implies, applicants are required to been born or currently work or live in any of the Federal Territories upon application.
5.MyHome (Skim Perumahan Mampu Milik Swasta)
Targeted for first-time homebuyers with a household monthly income not exceeding RM10,000.
Under the MyHome scheme, buyers will be required to pay a 10% down payment to the bank when purchasing a house. However, the government will give a rebate of up to RM30,000 to the buyer.
6. Maybank HouzKEY
Another RTO scheme, Maybank HouzKey offers 100% financing, with no down payment and low monthly payment. The minimum rental period is five years while the maximum is 35 years.
You must be a Malaysian, 18-70 years old and must not have more than 1 home financing (including HouzKEY facility) at the point of application.