He says registration for the specific PR1MA developments nationwide will soon be opened through the newspapers and PR1MA’s website.

“We will continue to open for registration more PR1MA developments as and when they are ready, and subsequently do ballotings for these developments. To date, PR1MA@Seremban Sentral has been opened for application. The balloting for this development will be organised soon,” he says.

Explaining the building process, he says before the house can be delivered to the buyer, there are many processes that must be followed such as proper research, planning, approval of the board, approval of the land development application, the local authority and other approvals that are needed to be obtained before construction begins.

Construction will take approximately 24 months for landed property and 36 months for high-rise developments.

To be eligible for a PR1MA Home, applicants must meet several key criteria. Applicants need to be a Malaysian citizen aged 21 years and above, with preference given to residents in the area where the PR1MA development would be built. Applicants should not own more than one property in Malaysia.

They should also have an individual or combined gross household income of between RM2,500 and RM10,000 a month to qualify.
The income band has just been expanded from a ceiling of RM7,500 previously, to RM10,000.
This is in line with the National Household Income (HHI) survey data which has shown that the average HHI has been rising the past few years with a significant increase in urban areas such as Kuala Lumpur, Putrajaya and Selangor.

Rising in tandem is the average value of properties in these areas which have been on an upward trend.
Statistics show that the average property value in Kuala Lumpur and Selangor have risen by 37.6% and 19.9% respectively, between 2012 and 2013 (according to Property Market Report 2013 Valuation and Property Services Department).

This rapid increase in market house prices have surpassed the means of the middle income group, especially those living in urban areas.
By expanding the middle-income household bandwidth, Abdul Mutalib says PR1MA would be able to offer home ownership opportunities for a wider segment of the population.

“Besides the public at large, civil servants, including teachers too, will stand to benefit from this expanded bandwidth.

“The salary structure of a government officer (Grade 44) has a gross monthly salary of RM3,600. If combined with their spouse’s income, and factoring in annual increments, it would definitely exceed the RM 7,500 threshold.

“Through this increase, not only would it provide an opportunity for this group to own a home, but it would also open avenues for those individuals up to Grade 48 and even Grade 52,” he says.

Under the PR1MA end-financing packages with its panel of banks comprising Maybank, MBSB and CIMB Bank, end-financing packages of up to 110% margin of finance from the sale and purchase agreement price will be provided. These financing packages include funding for MRTA/MRTT, legal fees, stamp duties and other loan-related expenses. No deposit is required and all loan-related expenses will be covered. The loan tenure is for up to 35 years or up to age 70, whichever is earlier.

Buyers may choose to either service the interest during construction and commence instalment only upon completion of the property, or another option is to capitalise the progressive interest into the loan amount whilst waiting for completion of the property.

No processing fees will be imposed for the loan. The moratorium is 10 years for outright purchases.
And to help those who are not able to get bank financing even through PR1MA’s panel banks, purchasers can opt for a deferred home ownership scheme called Rent-to-Own (RTO).

RTO is a 10-year rental scheme developed to help buyers to eventually own their home.
Participants will initially rent a PR1MA home and eventually purchase the PR1MA home at a pre-determined option price through conventional end-financing when their credit position has improved.

For outright purchasers, they cannot sell the house for ten years, while for those on the RTO scheme, the moratorium is 15 years.



For more information on Building and Construction event, please visit www.asiapacificevents.com