Media statement by Lau Weng San in Petaling Jaya on Wednesday, 9th March 2011:
Young adults not benefitting from "My First Home Scheme"
The newly launched "My First Home Scheme" is not benefitting much young adults in Klang Valley as most decent property in Klang Valley are sold at prices higher than RM220,000.
Although the scheme is opened to young adults who are 35 year-old or below, it is only limited to young adults or couples who work in private sector. Young adults who are free-lancers, working on their own or running their own business are not eligible to apply even though his or her spouses work in private sector.
More importantly, the loan amount limit of RM220,000 is totally impossible to benefit any potential young adult in Klang Valley as a decent house would cost easily RM250,000 to RM400,000. Some even goes up to above RM500,000 based on location.
Potential buyers who wish to benefit from this scheme can only consider properties at sub-urban areas like Semenyih, Dengkil, Kuala Langat, Kota Kemuning, Kuala Selangor, Rawang etc. However, huge transportation cost, long driving distance and duration are the major detering factors for young couples and young adults to move to these areas.
The federal government should instead stabilise the price of properties in Selangor and Kuala Lumpur, in particular Klang Valley whereby Klang Valley is a major magnet in attracting young adults from all over the country to work, study and live in.
The federal government should also notice that there is a huge influx of young adults into Klang Valley and other major cities in the Peninsula to work, live or study. Their demands of a decent living space are on the rise but property prices in Klang Valley are simply beyond their means. Such scheme should be designed for them to own their dream homes in these areas.
I call on the federal government to first abolish Bumiputera housing discount for properties above RM500,000 to allow the developer to sell such property at market rate. In return developers will be able to further reduce the prices of medium cost properties to cater the needs of young adults. With this, buyers of all races can benefit from lower prices of properties in town.
I further call on the government to raise the loan limit to RM350,000 and open the scheme to young couples even though one of them are not working in the private sector. With this, if one of the couple is a free-lancers or working on his/her own, his/her spouse who works in private sector can still apply for such loan.
* Lau Weng San, DAP Selangor State Secretary & SA for Kampung Tunku