RTO

New government, new hope for Malaysian property market?

Pakatan Harapan’s policies and programmes as outlined in The People’s Manifesto provide great anticipation for homebuyers, developers and investors alike. If done right, these strategies will go a long way in curbing the housing affordability conundrum.  The 14th Malaysian General Elections (GE14) on 9th May 2018 will go down in history as one of the most memorable days for millions of locals nationwide. The majority voted in favour of the opposition alliance to serve as the country’s new government – the Pakatan Harapan (PH) coalition trumped Barisan National (BN), which has been in power for 6 decades. We are all excited to see how PH will bring forth positive change; the new government has promised a reformation of Malaysia’s administration and politics as well as sustainable growth and...Read More

Is RENT-TO-OWN the answer to home ownership?

Let’s face the elephant in the room, shall we? For most Gen Ys out there, obtaining a home loan in the current economic condition seems like ‘Mission Impossible’. When you cannot purchase a house, rent instead, some people would advise. However, unbeknown to many Malaysians, there is a third option available – the rent-toown (RTO) scheme. The RTO concept operates based on a lease-purchase contract, between a buyer and developer. The buyer will first rent a property from the developer with an option to purchase at the end of the contract period, which could range from 20-30 years. There is also an option fee involved which must be paid by said buyer; a typical figure is roughly 5% of the property price. In RTO deals, a certain percentage of the monthly rent paid will be credited to the prop...Read More

Affordable Housing Taskforce Is Needed, HBA

The authorities should establish a taskforce on affordable housing, according to Chang Kim Loong, Secretary-General of the National House Buyers Association (HBA). In a report by The Sun Daily, he said the role of this group is to gather data and create a database of low-cost homes that has been planned, completed, and those under construction. It is also responsible compiling statistics on available excess units. “The taskforce, comprising intelligent people, can also think of solutions on how to implement a rent-to-own (RTO) scheme for the middle income segment to assist them to own their dream homes,” said Chang. This body should comprise banks, the Employees Provident Fund (EPF), federal government ministries, state economic agencies and government-linked companies involved in property...Read More