MyDeposit is launch to help First Home Owner... Does it really solve the current issue?

Written by Jonathan de Ho
MyDeposit is officially launch by Prime Minister Datuk Seri Najib Tun Razak on 7th April 2016. It is announced during Budget 2016, the scheme is aimed to help the lower income group with a household income of RM10,000 and below. The scheme, said a contribution of 10% from the sale price or maximum of RM30,000 (whichever is lower), will be given to first-time buyers looking for homes priced below RM500,000. 

    First, the main issue now is high property price and many of the young Malaysian not afford to own a house. This you also can translate to many of them not able to get loan approval and root of the cause is the household income and commitment. The loan reject cases is higher than ever, many buyer cant get mortgage loan approve as Bank also become more cautious and thee regulation is more strict than ever. Why? Why would bank do that? Its because they too also feel its risky to approved mortgage loan to the lower income group or high commitment group. So the root of the cause is low income. 

     Instead of giving some gimmicks (yes it will help some but not majority) in MyDeposit with contribution up to RM30,000 or 10% of sales price, it should focus on increase Malaysian economy and income. As nowadays a lot of new project launching come with No Money Down package or high rebates which you don't need to pay much up front. Another way of solution is increase awareness and more proper education on lifestyle changes and money management. Some family with RM10,000 still also cannot own a house as their expenses and commitment is also high as well. 

     Perhaps government should focus on getting Malaysia economy back on track and also lesser intake of foreigner worker. Large intake of foreigner worker not only reduce the job opportunity but it also directly increase Malaysia social problems such as criminals. Back to topic, Malaysian education also should educate more on money management and living a modest lifestyles. 

     MyDeposit from my opinion only help solve small portion of issue but not really treating the root of cause. Even if Bank Negara loosen the mortgage loan approval regulation also not really solving the issue. Property price is already at that so call "High" level, but if compare among the region we are still among the cheaper property price per square feet nation. So you can expect property price wont really going to reduce much even the market now is soft. Main solution is how to make Malaysia a high income country, how to educate majority to become high income group. That's all for my sharing today. 

     Here's today news in The Star Online on MyDeposit:


Najib launches MyDeposit
Refer from The Star Online, 7th April 2016

KUALA LUMPUR: The First Home Deposit Funding Scheme (MyDeposit) has been launched. Announced during Budget 2016 last October, the scheme is aimed at helping the lower income group with a household income of RM10,000 and below.
Prime Minister Datuk Seri Najib Tun Razak, who launched the scheme yesterday, said a contribution of 10% from the sale price, or maximum of RM30,000 (whichever is lower), will be given to first-time buyers looking for homes priced below RM500,000.
He said they could apply for the scheme online starting today through the National Housing Department website.
He also said his announcement under the Budget Recalibration 2016 that houses priced up to RM300,000 will be reserved for first-time buyers will take off this month.
Najib was speaking to reporters after chairing the National Housing Council meeting at Parliament building yesterday.
Also present was Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan.

It’s a deal: PR1MA chief executive officer Datuk Abdul Mutalib Alias (left) exchanging documents with Tenaga Nasional Berhad (TNB) chief corporate officer Datuk Wira Roslan Ab Rahman during a memorandum exchange ceremony between PR1MA and TNB. Looking on from left are TNB chairman Tan Sri Leo Moggie, Najib and Abdul Rahman.

​The meeting was also informed that as of Dec 31 last year, 17% or 183,755 units have been completed out of the one million affordable homes under the project set to be achieved by 2018.
Nineteen percent (214,011 units) were being built while 28% or 309,571 units were in various planning stages.
Najib also witnessed the signing of an agreement between Tenaga Nasional Bhd (TNB) and Perbadanan PR1MA Malaysia (PR1MA) to develop a plot of land in Kajang owned by TNB.
The project, mooted by the late PR1MA chairman Tan Sri Jamaluddin Jarjis, will see PR1MA working with a private developer.
Two blocks consisting of 786 units, have been planned with 50% allocated for TNB employees and the other 50% for those eligible. The project is expected to be completed by the end of 2019.