Starting next year, the low income group will be able to own homes with the Penang government's introduction of the shared ownership scheme.

Chief Minister Lim Guan Eng said that the rationale was many buyers of affordable homes are not able to obtain a bank loan of 90 to100 percent as they are seen to be unable to pay back their loans.

NONE Lim ( right ), who announced the scheme during his budget speech at the state legislative assembly yesterday, added that this was the first time any state government had embarked on such a policy.

"We regret that the Housing Credit Guarantee Scheme under the Finance Ministry failed to do its job and (fulfil its) responsibility to fund the purchase and guarantee the commercial bank loan to enable those who are poor to buy low cost houses," said Lim.

"To help the lower income group own homes, the state government intends to provide loans up to 30 percent of the units without interest through the scheme," he said.

Lim said the state government will buy 104 low cost units (town house type) in Taman Sungai Permai, Sungai Duri Permai in Seberang Perai Selatan.

penang house properties 301113 02 All the units will be sold to eligible buyers registered under the Housing Department and to those who fulfil the criteria to qualify them to buy such units, he added.

"These houses cost RM38,000 and eligible buyers only need to get a 70 percent bank loan while the remaining 30 percent will be taken care of by the state and can be paid back without interest," Lim said.

Lim said there is no need for buyers involved in this scheme  to provide any guarantee as "we trust the poor people will pay back the money".

He added that the scheme will operate like a micro-credit scheme and will truly enable the poor to own homes.