4 MIN READ5 public schemes offering affordable housing in Malaysia

Under any circumstances, the need for housing as a basic necessity persists. In the past 20 years, residential properties in Malaysia has experienced significant price appreciation with prices in several states like Kuala Lumpur, Johor, and Penang expanding at higher rates than other locations. Despite the current slowdown in the property market and many developers offering up to 30% discounts on real estate purchase, prices are still high for many people, and some buyers are still not able to secure the right margin of financing.

If you are a first-time house buyer, a middle-income earner and are interested to buy, you may want to look at public housing schemes. Property prices at public housing projects are relatively more affordable, about half or one-third that of units built by private developers.

There are many government initiatives out there that could help you get the right type of property that meets your requirement.

1. PR1MA

The prices of PR1MA properties range from RM100,000 to RM400,000 and they are ideal for young adults who have just graduated or started working.

  • To be eligible for PR1MA, one has to be a Malaysian citizen of more than 21 years old, with an average monthly household income of between RM2,500 and RM15,000.
  • He or she should own no more than one property.
  • The properties are allocated through an open balloting process.

The only setback when you buy a PR1MA house is a 10-year moratorium imposed on the property. During this period, you can’t sell or transfer your property to another party without prior approval from PR1MA.

2. FEDERAL TERRITORIES AFFORDABLE HOUSING PROJECT (RUMAWIP)

RUMAWIP offers stratified studio, as well as one, two and three-bedroom houses. These units come in different sizes and prices below the market price, targeted at low to middle-income workers.

The cheapest apartment that you can find under RUMAWIP is RM63,000, while the most expensive one are three-bedroom units which cost RM300,000.

  • To be eligible for Rumawip, the buyer must be a Malaysian citizen, at least 18 years of age, and living in Kuala Lumpur.
  • The buyer’s gross monthly household income must not exceed RM10,000 (for single applicants) and RM15,000 (married applicants).
  • The only downside is Rumawip homeowners are not allowed to rent out their property. It has to be for their own use.

3. MYHOME (PRIVATE AFFORDABLE OWNERSHIP HOUSING SCHEME)

MyHome is run by the Urban Wellbeing, Housing, and Local Government Ministry, as well as the National Housing Department. The properties under MyHome are priced between RM80,000 and RM300,000.

Under the MyHome scheme, successful applicants don’t have to fork out the 10% down payment to own the property as the government will take care of that.

  • To be eligible for MyHome, applicants must be Malaysian citizens of at least 18 years of age with an average monthly household income of between RM3,000 and RM6,000.
  • Only one application is allowed per family, which means more families will have a chance to buy a house under this scheme.
  • The constraint for this scheme is that the resale of this property is forbidden within 10 years.

4. RUMAH SELANGORKU

If you are renting in Selangor or plan to reside there, Rumah Selangorku should interest you.

Rumah Selangorku is a low-cost housing scheme catered to low- and medium-income families living in Selangor. The objective is to provide affordable homes for the middle-income group in the vicinity of the state.

There are seven types of houses under this scheme, each with different built-ups and priced between RM42,000 and RM250,000 each.

  • Applicants are selected based on a merit system and will not be able to appeal if their application is rejected.
  • Applicants that canceled a successful application will get blacklisted for two years.
  • Eligibility conditions include having an average monthly household income of between RM3,000 and RM10,000 and not owning any property in Selangor.

Resale for Rumah Selangorku houses is forbidden within five years and owners are not allowed to rent out their properties.

5. MY FIRST HOME SCHEME

My First Home Scheme is targeting young adults who have just started work and are interested to buy their first house.

The good part about this scheme is that successful applicants are entitled to access loan financing of up to 110% of the property price, and they can make installments via monthly salary deduction.

  • To be eligible for this scheme, buyers should be below 40 years old, have an average monthly household income of between RM3,000 and RM6,000, and don’t own more than one property.
  • Only one application is allowed per family.

Here at IQI, we provide services in purchasing the perfect home, aligned with the budget that suits your needs.

Help us by asking your burning questions, and we’ll provide a free consultation!

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