Buying a house in Malaysia, even on a modest salary, is a significant achievement and a sound long-term investment. While it may seem challenging, there are several strategic approaches and government initiatives that can help you make your homeownership dream a reality. Let us explore some steps for purchasing a house in Malaysia with a low salary:
1. Government Housing Schemes
a) MyHome Scheme: The Malaysian government offers MyHome Scheme to assist low-income individuals and families in buying their first home. This program provides financial assistance and subsidies to eligible buyers, making homeownership more affordable.
Who Is Eligible for MyHome?
Must be a Malaysian citizen
Must be over 18 years of age
Must be your first home purchase
Family income no less than RM3,000
Family income no more than RM6,000
b) PR1MA: PR1MA (1Malaysia People's Housing Programme) is another government initiative aimed at providing affordable housing to middle-income Malaysians. Eligible applicants can access homes at below-market prices through PR1MA developments.
Who Is Eligible for MyHome?
Must be a Malaysian citizen
At least 21 years of age at the time of application
An individual or family (husband & wife) with a combined household monthly income of RM2,500 – RM15,000
Applicants or his/her spouse must not own more than one property
Adheres to the additional guidelines set by PR1MA
2. Government Housing Loans (LPPSA Loan)
The Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA) offers government housing loans to public sector employees. These loans often come with lower interest rates and longer repayment periods, making them more accessible to individuals with lower salaries.
Who can apply for an LPPSA Loan?
Must be a Malaysian citizen to apply for an LPPSA loan.
Must be a permanent officer currently serving as any of the following positions:
o Member of the federal administration
o Member of Parliament (MP)
o Judge
o Working in a statutory body
o Serving in a local authority (PBT)
o Serving in a state government
o Member of the state administration
o Member of the state legislature
o Member of the civil service
o Police officer
o Member of the military
Must have served for at least one (1) year and have been confirmed in your position.
Must not be declared bankrupt, suspended from work, or subject to any disciplinary action resulting in dismissal from work.
3. Buy an Auction House
Purchasing a property through a property auction can be an opportunity to acquire a house at a lower price. Be sure to research the process thoroughly and attend auctions with a clear budget in mind. Keep in mind that auction properties may require renovations or repairs.
4. Joint Loan with Family Member
Consider applying for a joint housing loan with a family member or spouse who has a higher income. Combining incomes can increase your borrowing capacity and make homeownership more achievable.
Conclusion
Buying a house in Malaysia with a low salary is achievable with careful planning and by taking advantage of government housing schemes, affordable housing options, and financing programs. Research, save diligently, and consider creative solutions like joint loans or purchasing auction properties. Homeownership is a significant milestone, and with determination and the right strategies, you can make it a reality, even on a limited income. Remember to seek advice from financial professionals and housing experts to make informed decisions along the way.
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