KUALA LUMPUR (Aug 8): The preference for owning expensive cars and maintaining a lifestyle beyond their means is preventing millennials from investing in homeownership.
Their level of awareness of the importance of owning a home is low as they do not consider it a priority, according to an expert interviewed by Bernama.
Universiti Sains Islam Malaysia Faculty of Engineering and Built Environment senior lecturer Ahmadsyafii’ei Abdul Kudos said young people need to be more aware of the issue of homeownership as it is an important step in ensuring long-term financial stability.
“Owning a home (instead of renting one) not only provides a permanent place for them to live but also serves as an investment with the potential to appreciate in value over time.
“With good financial planning and a better understanding of the real estate market, young people can achieve their dream of owning their own home,” he said.
He said the trend of renting is ingrained in today’s young generation, warning it may have negative implications on their lives over the long term.
“First of all, they will continue to pay rent, which may increase over time, without the benefit of long-term asset ownership. Secondly, not owning their own home can undermine their financial stability and complicate future planning, especially in old age,” he said, adding some of them dream of owning a luxurious house and prefer to wait until they can afford to buy their ideal home.
“However, they don’t realise that house prices keep rising. This may lead to young people being trapped in an ‘always unable to afford’ zone when it comes to home-buying.”
Improve homeownership policy
In January this year, a Bernama report – citing a study titled ‘The Variations in Preferences of the Young Generation in the Klang Valley Towards Housing Property Demand’ conducted by Universiti Putra Malaysia in mid-2022 – revealed that millennials (aged between 25 and 45) prefer renting for various reasons, one of them being their high financial commitments which prevent them from buying a home.
According to the findings of the study, for most of the respondents, owning a car was a benchmark of their success in life. Many also had credit card commitments with at least two banks.
Ahmadsyafii’ei said to encourage young people to buy homes at an early age, the government needs to increase access to affordable housing programmes such as those under PR1MA Corporation Malaysia and Malaysian Civil Servants Housing (PPAM), as well as Rumah Mesra Rakyat (RMR) or People-Friendly Housing schemes developed by Syarikat Perumahan Negara Bhd (SPNB).
He noted that while positive steps have been taken under the National Affordable Housing Policy – a sub-policy developed by the government to outline standards, key specifications, prices and guidelines for the development of affordable housing – there is still room for improvement.
He said the government needs to consider increasing access to housing loans and enhancing opportunities for homeownership among people in the low-income category.
“Various initiatives have been introduced to facilitate financing for buyers such as the i-Biaya scheme, Rent-to-Own scheme and My First Home scheme. These schemes need to be further promoted to encourage young people to own homes,” he added.
No group left out
Commenting on the issue of homeownership among young people, the Ministry of Housing and Local Government (KPKT) told Bernama the MADANI government is deeply committed to ensuring that no group is marginalised when it comes to accessing housing, which is a fundamental human right.
In a written response to questions submitted by Bernama, the ministry said to enhance the supply of quality and sustainable affordable homes, the government is targeting to provide 500,000 such units nationwide during the 12th Malaysia Plan period from 2021 to 2025.
As of March 31 this year, the number of affordable homes completed and under construction stood at 288,968 units. This accounted for 57.8% of the target set for the 12th Malaysia Plan.
“In this regard, the ministry will continue to enhance cooperation with all housing providers at the federal, state and private-sector levels to ensure we achieve the target.
“KPKT is also committed to providing affordable housing through the People’s Housing Programme (PPR) and People-Friendly Housing schemes or RMR for the B40 group, as well as SPNB and PR1MA residences for the M40 income group,” it said.
Source: EdgeProp.my
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