Rent-to-own scheme to be extended to upcoming Residensi Rakyat Programme, says Nga

Nov 27, 2024

KUALA LUMPUR (Nov 26): The rent-to-own (RTO) scheme will be extended to the upcoming Residensi Rakyat Programme (PRR), set to launch next year, Housing and Local Government Minister Nga Kor Ming (pictured) announced.

He explained that the scheme, designed for applicants or potential buyers who cannot secure financing from financial institutions, is part of a proactive effort by the Ministry of Housing and Local Government to promote gradual homeownership.

“This initiative also offers young people entering the workforce an opportunity to own a home by renting for a specified period, after which they can choose to purchase the property,” he explained during the winding up of the Supply Bill 2025 debate at the committee stage in the Dewan Rakyat on Tuesday.

Nga also highlighted that his ministry is implementing various initiatives, including the Housing Credit Guarantee Scheme, where the government guarantees financing up to RM500,000 for first-time homebuyers, targeting those without a fixed income and those from low- to middle-income groups.

Additionally, the Home Ownership Campaign 2.0, which offers stamp duty exemptions for transfer and financing agreements for first-time homebuyers purchasing properties valued up to RM500,000, will be available until Dec 31, 2025.

Nga also reported that as of Sept 30, a total of 25,903 units of residences under Syarikat Perumahan Negara Bhd (SPNB) had been sold, with 19,909 units or 76.9% owned by young people.

He further noted that 44,983 units, or 65% of the 69,205 affordable housing (RMM) units built, were also owned by the youth.

In addition, 25,030 out of 41,671 units, or 60.1% of RMM homes sold by PR1MA, were owned by young people. This does not include joint-venture projects carried out by PR1MA.

Source: EdgeProp.my