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Rent-to-own Scheme Helps Penangites Buy Their Own House

Rent-to-own Scheme Helps Penangites Buy Their Own House

The state of Penang will be focusing on the rent-to-own (RTO) home ownership scheme for Penangites to own a house of their own.

What you need to know: The rent-to-own scheme was introduced in Budget 2020, aimed to assist first-time buyers unable to afford the initial 10% deposit and access to financing to buy homes. The scheme will allow potential buyers to rent a property during the initial lease period, then at the end, they are given the option to purchase the house. However, it’s only applicable for property priced up to RM500,000.

What’s new: So far, Penang is targeting to build 180,000 affordable housing units by 2030, of which 10% will be placed under the RTO scheme.

Why it matters: The scheme will allow young families and working professionals who don’t have the earning power for housing loans to be able to eventually own a home of their own. Currently, Maybank also has an RTO scheme that applies for many other development projects in the country.

Who said what: State Housing, Local Government, Town, And Country Planning Committee Jagdeep Singh Deo notes that 2,474 units are currently on the list, though the government welcomes the participation of other developers, especially government-linked companies (GLC) to offer RTO schemes in their housing projects.

Read more:
Penang govt to focus on rent-to-own scheme to help people own a house, says exco (Malay Mail)

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