LETTER | High prices and long-term commitment of owning real estate are driving people away from the idea of owning their own homes.

The problem of the rising cost of living and stagnating salaries is also to be blamed for the situation. Buying a property is the biggest consideration for many people because it’s a big-ticket item with a high value and needs enough funds.

So it’s not surprising that a growing number, especially the younger generation, are taking a ‘wait-and-see’ approach as they are reluctant to be tied down with a large debt for a long period of time.

Another reason could also be that they fail to fulfil the loan or financing conditions. The problem of acute unaffordable housing in Malaysia is forcing some working youngsters to buy or invest in short-term assets with depreciating value, such as motorised vehicles.

It is normal for people to feel they need to enjoy the fruits of their labour, and if homes are beyond their reach, they would naturally buy things they can only just afford.

The fact is, either many are not financially able or have other commitments which are more pressing. Among the many reasons is that they need to repay their education loans or help support other family members.

To help youths own a house, the stringent housing loan requirements by banks for first-time house buyers, especially youths, should be reviewed.

According to Housing and Local Government Minister Zuraida Kamaruddin, the lack of a second income, inadequate spouse income and National Higher Education Fund Corporation loan repayments were among the factors that impeded loan approvals.

The minister should sit down with both the Ministry of Finance and Bank Negara Malaysia to look into how the banks can relax a bit on the regulation for first-time home buyers, especially youths.

Besides, the ministry may also want to take into consideration the financial standing of youths because some of them might not have any money in their bank accounts as they receive financial support from their parents.

The ministry also plans to modify and introduce on the national level Selangor’s “Smart Saver” scheme whereby young couples or youths can rent a state-owned house for two to five years

Under the “Rumah Selangorku” housing scheme, the state government will return 30 per cent of the total rental paid after the rental period and with that money, the youths can use it as a deposit for a new house under this housing scheme.

The ministry wants to adapt and modify the policy and see how they can assist youths to buy their first house.

The government and ministry seem serious in helping Malaysian youths to own a home and a property as this is as it should be.

The government helping youths and middle-income earners to afford homes should be a topmost agenda.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.