Mah Sing Group Easier Loan for first Time Home Buyer.

source : propertyguru.com

Mah Sing Group has lauded the initiatives of the government to encourage home ownership, particularly among first-time home buyers.

Since the property sector has bigger multiplier effects compared to other industries, stimulating the sector would result in a huge impact on the country’s wider economy.

In reiterating its wish list for the upcoming Budget 2017, the property developer urges banks to consider easing loan approvals. Notably, Mah Sing hopes that `banks would offer the flexibility of 95 percent financing for first-time house buyers, 90 percent for second homes and 70 percent for those purchasing their third property.

It also hoped that the debt servicing ratio for first time home buyers would be increased from 70 percent to 80 percent, while extending loan tenure from 35 years to 40 years.

“The Government can consider revising the percentage of funds in Employees Provident Fund (EPF) Account One and Two,” it said.

“By increasing the funds in Account Two from the current 30 percent to 40 percent of EPF balances, contributors can have more funds in Account Two to pay the downpayment of their property, reduce housing loan and pay monthly housing loan instalments.”

Meanwhile, utility firms should bear the capital outlay for infrastructure as well as recoup their investment through tariff instead of the present practice of charging the costs upfront to property developers, said Mah Sing.

The connection charges posed by utility companies should be charged reasonably and not based on property prices.

Mah Sing also suggested for the government to reduce land conversion premiums and developer cost charges, as there are heavy compliant costs and could result in cost savings which can be passed by developers to home buyers.

It believed that the country’s housing supply shortage issues may be mitigated by the systematic release of government-owned lands for joint ventures with private property developers to build affordable housing.

“Careful planning and implementation of Government development projects and close monitoring of demand and supply situation will ensure sustainability in supply relative to demand,” it said.