DURING these troubling times where people are losing their jobs left and right, it seems to be harder for potential home buyers to actually acquire the property they want.
In certain cases where home buyers do get to purchase a house, the chances of them ending up in crippling debt is higher than ever before.
Most are probably unaware that the Credit Counselling and Debt Management Agency (AKPK) provides counselling and debt management advice to avoid such instances. In fact, the agency also offers financial education to help more people take control of their financial situation.
With that in mind, the National House Buyers Association (HBA) had in 2019 recommended a similar programme – aptly called the Homeownership Education Programme – which aimed to raise the overall financial literacy as a means to prepare individuals take on the responsibilities of owning a home.
According to HBA secretary-general Datuk Chang Kim Loong, buying a home is one of the largest and most complicated financial commitment most people will make. Therefore, first-time house buyers tend to face many challenges along the way.
“Apart from having to carry the burden of monthly payments or even qualifying for housing loans, there might not be many choices for affordable homes in their preferred location,” Chang explained when contacted by FocusM.
“They may even be lacking the right amount of information to even know the proper way of buying a home.”
For the past five decades, a number of affordable housing project schemes and funding plans were introduced in Malaysia, but the same cannot be said regarding information about the said projects which hinder potential customers from getting adequate knowledge on its availability and financing options offered.
Due to this, Chang suggested for the Government to soon introduce a ‘single umbrella’ or ‘data bank’ platform that could collect information and coordinate the total numbers of affordable units being built, its location and pricing.
This will allow potential buyers to have access to any of their preferred homes at any time without having to navigate through various different platforms.
The platform could also help the lower income households to obtain sufficient personal financial management skills which has become more than just a supplementary issue considering how there has been an alarming trend of low and medium cost units being auctioned off for half or even more than half the price they were sold.
“Unfortunately, there are no official statistics on how many low and medium income earners who have lost their homes or not being able to finance their purchase promptly. Where do these homeowners and their families end up living?” Chang questioned.
Since foreclosures can devastate one’s economic and social standing, it’s safe to say that ensuring homeowners are better informed of their rights and responsibilities could also benefit financiers, local authorities and communities.
To further enhance the availability of homeownership information to the public, Chang revealed to FocusM that HBA will be launching its own television programme known as HBA TV in mid-August this year. – Aug 2, 2021
