Rumah Selangorku: An Essential Guide

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In the year 2014, Rumah Selangorku was introduced by the Selangor State Government led by the state’s very own Lembaga Perumahan dan Hartanah Selangor (LPHS) . This was done to deliver affordable houses to qualifying citizens within the state of Selangor, a densely populated area with around 6.57 million inhabitants. With the skyrocketing prices of affordable homes construction in a popular area as Selangor, owning a house is a huge issue for many especially, those from the average and lower economic spectrum. These groups of underprivileged people would have no choice but to live in rented units with high rental rates. When push comes to shove, they would be forced to evacuate from these rented spaces and find other means of accommodation.

What is Rumah Selangorku?

Now, with the Rumah Selangorku scheme, developers of qualifying housing projects are mandated to construct a specific amount of affordable housing units with a specified house type, size, and capped selling price. The location and size of the development are taken into account when determining these aspects. These properties must align with LPHS’ aim to build quality but affordable homes hence, allowing people from underprivileged groups to own a house of their own without much hassle.

Rumah Selangorku was initiated with help from the private sector and with high hopes that it would resolve home-ownership and affordability issues in the state of Selangor — a long, withstanding dilemma. Another issue that Rumah Selangorku aims to resolve is the housing supply and demand mismatch in the market.

Construction of Rumah Selangorku Houses

According to the agreement with the property developers involved, the Rumah Selangorku houses should be constructed in the first developmental phase of the housing project or simultaneously with the other residential units. Strict action would be taken against the failure to comply with this agreement. This includes the suspension of the entire development project, the building plan approval and the issuance of the certificate of fitness too. Therefore, there would be no issues such as the developers failing to meet the Rumah Selangorku quotas or the delaying of construction.

Rumah Selangorku eligibility

To own a house of affordable housing developments under the Rumah Selangorku scheme, the following are the conditions that must be met:

• Over 18 years of age
• A citizen of Malaysia (Malaysian citizens)
• A resident of Selangor
• Must not own property before this (first-time home buyers)
• Income status: A maximum household income of RM 10,000
• Each household should only have 1 application
• Single applicants with dependents can apply

Rumah Selangorku application

Applications for the Rumah Selangorku scheme are fully-online. This means that unlike other housing schemes conducted nationally or in other states, one can’t apply through paper documentation or in person. However, these steps are very simple to follow to be on your path to be a proud homeowner.

Here’s a step-by-step guide to applying for the Rumah Selangorku scheme:

Step 1: Create an account by logging into the online portal at http://ehartanah.lphs.gov.my/lphs/www/index.php?id=4&page_id=9

Step 2: Upon signing in, some documents need to be provided to confirm your eligibility for the Rumah Selangorku scheme. These documents include:

1. Copies of identity cards
2. Birth certificates of children/dependents (if applicable)
3. Copy of Marriage Certificate or similar documentation (if applicable)
4. Confirmation letter from employer or Commissioner of Oaths for single self-employed applicants (if applicable)
5. Payslips, bank statements, or income verification from Commissioner of Oaths (if applicable)
6. Statutory declaration from Commission of Oaths of unemployed spouse (if applicable)
7. EPF statement (if applicable)
8. Copy of utility bill
9. Credit reports such as from Central Credit Reference Information System (CCRIS) and/or from Credit Tip-Off Service (CTOS)

Step 3: Submit your application

Successful applicants of the Rumah Selangorku scheme would be contacted via email or letter to confirm their selection for a property. Please do note that the applicants are assessed based on a merit system, by comparing their eligibility criteria and potential merits.

Terms & Conditions for Rumah Selangorku

Despite the flexibility that a Rumah Selangorku scheme offers, there are a few important pieces of information that one should note before applying for a house under the Rumah Selangorku scheme. This includes the fact that owners can’t sell the property within 5 years of purchase, and they can’t rent out the properties too.

After 5 years, an applicant can sell the house under approval from the State Government. In regards to the applications, one must reapply after 2 years if the application is unsuccessful and applicants who turn down a house offer are deemed as an inactive applicant for 2 years. Prospective applicants are not allowed to choose the house too. This means they’ll be assigned to one by the state government by merit. It should be noted that applicants are not allowed to appeal for the rejection of their application.

Cons of Rumah Selangorku Scheme

With the benefits laid out clearly, one should also think of the cons before owning a house under the Rumah Selangorku scheme. This is extremely important to ensure minimal to no obstructions in one’s quest to own a house. These obstructions range from hidden costs and the general public’s perception towards houses under the Rumah Selangorku scheme. Taking into account these factors would shape one’s perspective towards applying for a house under the Rumah Selangorku scheme.

Here are the disadvantages of applying for a house under the Rumah Selangorku scheme:

Hidden Costs

As far as cheap house ownership programs go, it doesn’t cover the extra effort (and extra costs) from the applicant’s end. It looks good from the outside because the houses under this scheme are cheap but what about the additional costs incurred? This includes miscellaneous costs such as stamp duty for the transfer of ownership title, sale and purchase agreement (SPA) legal fees, stamping for SPA and loan agreement, SPA legal disbursement fee, loan agreement legal fee, the fee for the transfer of ownership title, government tax on legal agreements and bank processing fee for loans.

The non-disclosure of additional costs as such would definitely be a huge let-down for buyers of the houses from the Rumah Selangorku scheme who might be enthralled by the pricing of the houses but eventually fail to notice these additional costs. They might as well be buying a regular house with more benefits at hand. Apart from that, successful applicants for the Rumah Selangorku scheme are no different from regular buyers. A 10% down payment of the house price is required in addition to the miscellaneous charges aforementioned. A major downside faced by buyers of this scheme would be the fact that they could not benefit from various property deals and purchase exemptions such as the stamp duty exemption. This is because the houses purchased are below RM 300,000 and this stamp exemption applies for houses within the range of RM 300,000 to RM 1,000,000.

Transportation Cost

In the long run, transportation and nearby facilities are undeniably important, especially for working individuals and families. In general, housing projects under the Rumah Selangorku scheme are placed in areas with low connectivity to major highways and public transportation. This would eventually increase the daily cost of transportation. Practically, if a successful applicant is to sell his or her house after 5 years, there is a high chance that the house might not get sold due to its location and lack of ease of access to entertainment outlets and amenities.

Perception of the General Public

Although the outlook of properties under the Rumah Selangorku scheme might seem appealing to some people, many still beg to differ. The mere sound of a low-cost housing area incites various bad remarks among the general public. This includes discriminating those from low-cost houses due to its association with lack of cleanliness, people with lower education levels and people from the lower economic spectrum.

Despite Rumah Selangorku houses straying far away from the narrative of low-cost houses, the public’s perception remains. Buyers of Rumah Selangorku houses would be highly attracted to the low price offered but in the long run, they might be disappointed with the fact that the house owned might not have much land value. This factor is heavily linked to the public’s perception of Rumah Selangorku houses nevertheless. The worst-case scenario would be the inability for the owners to sell the house after more than 5 years. Economically, this would stunt the financial growth of house owners under this scheme as they might not be able to own a house that’s in line with their needs.

Limited Buyers

Although one of the aims of the Selangor state government is to resolve the housing supply and demand mismatch in the market, this might not come to fruition. This is because of the difficulty in obtaining buyers from the desired pool of people. Besides that, the application and sales process is extremely tedious and selective. Added on with the factor that buyers can’t choose their desired houses, a lack of interested people from the desired pool of people would be an issue. With a large number of targeted people coming from lower economic backgrounds, internet literacy might be low among them. These people might be uninterested in applying because application to this scheme is only done online unlike other schemes nationwide which prioritize both online and in-person applications. This is heavily amplified with low internet connectivity in their existing homes. As a result, many houses from this scheme are left empty years after launching them.

List of Properties for Rumah Selangorku Scheme

Petaling

Sepang

Gombak

Kuala Langat

Klang

Kuala Selangor

Sabak Bernam

Hulu Langat

Hulu Selangor

Important Note: Successful applicants under this scheme would not be able to choose their desired houses.

Other location of Rumah Selangorku are located in strategic location such as Bandar Puncak Alam, Bandar Saujana Putra, Alam Perdana and Tamara Residence.  There is also bigger projects like Idaman Cahaya, Idaman Sari, Idaman KITA, and Idaman Melur. More future property are coming with affordable selling price suitable for household income range.

FAQ

Tired of reading through long write-ups? Well, here are some helpful points in the form of frequently asked questions that might save you time.

Can I opt for a mail-based or in-person application?

No. Application for the Rumah Selangorku scheme could only be done online via the Rumah Selangorku portal.

My monthly salary is RM 1,000. Am I eligible to apply?

Yes. To apply, you’d need a maximum household income of RM 10,000.

Can my wife and I make 2 separate applications to increase our chances of getting selected for the Rumah Selangorku scheme?

Unfortunately, no. Only 1 application per household could be made. Don’t worry, though! As long as you’ve satisfied all the requirements, you’ll be in the running for a successful application.

How long would I have to wait before selling the house bought under the Rumah Selangorku scheme?

You could only sell the property within 5 years of purchase and additionally, no renting is allowed.

Can I choose the house of my choice?

No. The houses will be assigned to you by the state government by merit.

Conclusion

In general, the Rumah Selangorku scheme is indeed a great initiative by the Selangor state government. Hopefully, the financial gap between the poor and rich could be decreased via this scheme. It would be great to finally see the underprivileged owning a house for the betterment of their future generation. However, the Rumah Selangorku scheme still has its shortcomings that manage to deter people from buying properties under it. Addressing these issues is crucial to ensure everyone owns a place that they can call home.