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Curbing profiteering on affordable homes

Selangor is considering two rules to prevent profiteering from its affordable home schemes. They include restricting the transfer of ownership within the first five years and only allowing the homes to be resold to the state with a limited profit margin.
State executive councillor Iskandar Samad said that if the owner wants to sell their affordable homes, they can only sell it back to the state government. The state’s affordable homes (Rumah Mampu Milik), priced below RM100,000 for an apartment unit of 750 to 850 sq. feet, are targeted at middle-class buyers with a monthly income of between RM2,500 and RM5,000.
Iskandar pointed out that affordable homes are different from low cost houses as the latter are cheaper, usually priced at RM42,000, and smaller at 650 sq feet. But only those with who earn less than RM2,500 a month can buy low-cost houses.
“Our affordable homes are also different from federal government projects, where houses are sold at RM100,000 to RM220,000 to those with a monthly income of between RM3,000 and RM6,000,” said Iskandar. He pointed out that first-time buyers are given priority to purchase Selangor’s affordable homes, with 40% of the units reserved for buyers under 35 years of age.
(Adapted from Selangor Times)