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See also: What is Rumah PPR and PPRT?
One of humans’ basic needs is the need for shelter. That is why owning a property has always been considered an important milestone in a person’s life. Therefore, this milestone should not be reserved only for the wealthy. Rather, it should be a privilege for every individual. However, there are certain factors that can pose a barrier to this goal of making home ownership accessible to every layer of society. One of those barriers includes the Covid-19 pandemic on the global economy. Malaysia is not spared from this turmoil.
A report titled ‘Economic Impact of Covid-19: A Malaysian context’ by Ernst and Young, a well-known name in assurance, tax, transaction, and advisory services, highlighted an estimate by the International Labour Organisation (ILO) of a rise in unemployment and underemployment due to the pandemic. In Feb 2021, Nor Shamsiah Mohd Yunus, who is the governor of the Central Bank of Malaysia, or Bank Negara Malaysia, stated that the labour market is forecasted to remain soft in the first six months of 2021, before showing improvement.
Furthermore, according to the Central Bank of Malaysia, the country’s gross domestic product (GDP) contracted by 5.6% in 2020. This marked the biggest contraction that Malaysia has experienced, since a 7.4% contraction in the 1998 Asian Financial Crisis. However, that is not all. The Malaysian inflation rate is also forecasted to rise to an average of 1.5% to 2.5% in 2021. These worrying figures can leave one to question if homeownership can even be possible and affordable, especially for the B40 and M40 income categories.
But all hope is not lost because with Rumah PR1MA, homeownership is still possible!
The objective of PR1MA is to ‘plan, develop, construct, and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres.’
Essentially, Rumah PR1MA gives those under the B40 and M40 income category to own a property. As per the 2019 Household Income and Basic Amenities Survey Report by the Department of Statistics Malaysia, the income threshold for the M40 category is between RM 4,850 and RM 10,959 per month. For households under the B40 category, the income threshold is RM 4,849 per month.
Rumah PR1MA is located within integrated communities in key strategic urban areas throughout Malaysia. Rumah PR1MA comes in a variety of types and sizes, to suit different needs. These homes are generally priced between RM 100,00 to RM 400,000.
The eligibility criteria to apply for Rumah PR1MA are as below:
Rumah PR1MA is located throughout Malaysia, and below are the list of all the Rumah PR1MA developments:
|1||Kangar, Perlis||Residensi Padang Siding|
|2||Permatang Pauh, Penang||Residensi Permatang Pauh|
|3||Kulim, Kedah||Residensi Junjong|
|4||Kulim, Kedah||Residensi Padang Meha|
|5||Kulim, Kedah||Residensi Sungai Ular|
|6||Baling, Kedah||Residensi Kuala Ketil|
|7||Alor Setar, Kedah||Residensi Simpang Empat 2|
|8||Sungai Petani, Kedah||Residensi Sungai Petani 1|
|9||Sungai Petani, Kedah||Residensi Sungai Petani 2|
|10||Batu Gajah, Perak||Residensi Sungai Raia|
If you are ready to begin your journey, here are the steps you will need to take:
To begin your application process, you will first need to register for a PRIMA account.
You may indicate your top three location choices, the type of property you are looking for, the built-up size, and the number of bedrooms and bathrooms. Once you have finished filling in the requested information, you can click ‘Submit’.
You will then receive a confirmation. Do take note of your reference number, which would be stated in this format: Pxxxx-xxxxxxx. This would be the reference you will be using for all communications with PR1MA.
Once you have completed your registration process, you will then receive a confirmation email from PR1MA.
You will receive a notification if there are any new property launches. If any of these new launches fit your requirements, you can take the next exciting step, which is to cast your ballot! To do that, you must log in to the PR1MA website. Use the ‘User ID’ and ‘password’ that you have previously registered for yourself. After then, you can proceed to cast your ballot at your preferred launch. You will then receive an email confirmation from PR1MA.
If you are interested in any of the existing developments, you do not have to cast a ballot. Instead, you can approach a PR1MA sales agent who would assist you with the next steps.
PR1MA will then conduct an eligibility check on all applications and upon successful verification, you will be moving on to the next step of the application process, which is the balloting process.
If your ballot is successfully chosen, you will be notified via email. After that, you can then proceed to apply for a home loan from a bank of your choice.
You will also receive an invitation to select the unit of your choice, which may differ in the built-up sizes and price range.
When considering a bank to apply for a home loan from, you have the choice to from any banks. However, you might want to take note that PR1MA has a panel of bankers and you can stand to enjoy special promotions when you apply from these banks. Below are several options for you to finance your property:
Buyers may apply for a home loan from selected banks, up to 100% of the price stipulated in the Sales and Purchase agreement
Through this scheme, PR1MA home buyers will enjoy lower monthly repayments, and buyers will only need to pay a fixed interest for the first five years. At the time of writing, this scheme has not been implemented yet and this article will be updated when it has been implemented.
The Rent-To-Own (RTO) scheme was introduced by the Malaysian government in its 2020 Budget. This scheme can help borrowers who do not have a sufficient down payment to buy a property, as the buyer can first rent the property and have the option to purchase the property at a later date. Under the RTO scheme, borrowers will also enjoy a waiver on stamp duty. For those who are unable to meet the income requirements from banks to qualify for a housing loan, the RTO scheme would be a good option. However, at the time of writing, the RTO scheme has not been implemented at PR1MA and this article will be updated when it has been implemented.
PRIMA also provides a home insurance scheme called ‘Care by PR1MA’ for homebuyers. This makes it very convenient for buyers as they do not have to source elsewhere for home insurance coverage.
In case you need further clarification, here is a list of the frequently asked questions (FAQ):
Is registering online the only option for me to register with PR1MA?
Yes, it is. Alternatively, you may also visit any of the PR1MA offices or sales galleries. Once you have registered, you may obtain assistance from any PR1MA sales agent for the property you are interested in.
How can I get in contact with a PR1MA sales agent?
That’s easy, you simply follow the steps below:
Step 1: Access the PR1MA website and click the ‘Property’ tab.
Step 2: Then select which region and state that you prefer:
Step 3: Select your preferred PR1MA development. For example: Residensi Kajang Utama is selected in this example.
Step 4: Scroll all the way to the bottom of the page and click on ‘Sales Agent’.
How many applications can be submitted per household?
Only one application can be submitted from each household.
Are there any charges that I have to pay when I apply?
No, it is completely free.
Can I use the services of a bank that is not on PR1MA’s panel?
You may only do so if it is a completed property.
Can I buy Rumah PR1MA as a second property?
Yes, you may!
Can I sublet my property?
No, Rumah PR1MA must be owner-occupied.
When I sell my property?
Rumah PR1MA cannot be sold in the first five years of purchase.
However, buyers must take note that the various states could have different guidelines.
In August 2020, The Star, a local Malaysian newspaper published an important finding from a study done by the United Nations International Children’s Emergency Fund (UNICEF) and United Nations Population Fund (UNFPA). That profound finding showed that low-income urban families in Malaysia, although impacted by the Covid-19 pandemic are more resilient and responsible than what society might think. Although they are in dire need of help, all they want is a chance to earn a living for themselves. In other words, this group of Malaysians do not want pity, but a sense of dignity.
Therefore, the opportunity provided by Rumah PR1MA to own a property is in line with their needs and desires to live a life of dignity. With an affordable price together with support to obtain financing, this is a great initiative from the Malaysian government.
After all, the important milestone of buying a property and moving in should not be taken away from anyone, especially in the midst of economic uncertainties due to the pandemic. Rumah PR1MA is characterised by a strategic location in key urban centres and within an integrated community, good facilities, and amenities, and most importantly, it represents a comfortable residence for families to come home to at the end of a long day.
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