PR1MA – No Bank Loan? No Worries. Rent for up to 30 years.

During a groundbreaking ceremony in Seremban, another new enhancement for PR1MA scheme was announced by Prime Minister Datuk Seri Najib Tun Razak. For the applicants to PR1MA who qualifies but were unable to secure a bank loan can now rent for up to 30 years. This Rent-to-Own (RTO) scheme would be for potential buyers who could not afford the units or were turned away by banks to still own these units by paying rents for up to 30 years and eventually owning the unit! In terms of implementation, some sort of arrangements would have to be coordinated with the banks concerned.
He said that this intervention is necessary because there were real cases of genuine buyers who just could not come up with proper documents to support their applications. As of last year, total PR1MA applications has reached over 700,000 in the national registration system and in terms of approval, up to 80,494 are approved for construction. This is indeed a huge number but as usual, there were no mention as to how many of these 700,000 applications have been vetted and how many actually qualifies or were rejected or are the potential ones for the latest RTO scheme.
Personally, if I am able to, I would love that everyone who needs a home should own a home. However, as in any schemes, the implementation part must be well thought of. Imagine if those who can actually qualify for loans trying to be funny and made their loans rejected just to qualify for this RTO scheme. Smile or laugh if you want but these things do happen. If more are offered these RTO schemes, then there would be lesser financial resources available for other qualified or more genuine first time buyers. Somehow, someone or some organisation has to pick up the tab for the construction of these units as RTO scheme meant that the occupant pays just rental. So, if the units costs RM200,000 to build, this money would have to come from somewhere because if the rental is RM500, then it will just be a payment of RM6,000 after one year!  Ok, will await more details on this latest piece of news.
written on 10th Sept 2014
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