Story by Christopher Tan
Pix by Eng Kok Wei and Christopher Tan
DRIVEN by his passion to help aspiring home buyers, a property developer has come up with a special package that allows home buyers to enter a rent-first, buy-later contract with the developer.
M Summit Group founder and managing director Datuk Albert Moh, a Penang-born, said the Group wanted to help lighten the burden of home buyers, especially those facing problems securing housing loans.
“We are offering our ‘rent to own’ scheme, dubbed as the state’s first of its kind by a private developer, for our Ramah Pavilion condominium project in Teluk Kumbar.
“There are 30 units up for grabs under this programme.
“We do not want to merely build houses for the rich. We believe that homeownership is for all.
“Thus, this is our way of giving back to the community by helping to make homeownership on the island more affordable and far-reaching.
“This unique offer can provide a buffer period for potential buyers to sort out their personal finances and build up their credit standing before they start applying for a loan,” Moh said.
Moh added that under the programme, the monthly rental collected over the five years would be treated as 20% of the unit’s price.
“Before the tenure expires, the ‘tenant’ has the option of signing a Sales and Purchase Agreement to buy the unit and the total rental he has paid will be treated as up to 20% deposit.
“Thus, although the value of the property may have risen over the five years, the buyer still pays the same amount as the present purchase price.
“The buyer does not have to worry about having to pay more due to real estate appreciation. The rate will be pegged to the current price,” he explained during the Penang Affordable Housing Expo 2018 at Sunway Carnival Mall in Seberang Jaya on March 31.
Moh said during the lease tenure, the developer would bear the assessment, quit rent and insurance of the rented units while the tenant merely pays for the monthly maintenance and sinking fund charges.
“We are also supporting the Chief Minister’s 4Ps (public, private, people and professional) partnership call by working with the public sector to help the people get cheaper homes,” he added.
Set up 18 years ago, M Summit Group is the first private developer to take on Penang’s affordable housing scheme.
Expected to obtain its Certificate of Completion and Compliances (CCC) end of April, Ramah Pavilion comprises 759 units ranging between 800 sq ft and 1,350 sq ft in size.
More than 90% of the units have been sold.
Chief Minister Lim Guan Eng opened the expo in the presence of a strong crowd.
State Housing, Town and Country Planning Committee chairman Jagdeep Singh said the state government prioritised Penangites when it provided affordable homes for the people.
“It is not unusual for the state to care for its people first when providing homes to the people,” he said.
He was commenting on the reason behind the ‘condition’ that in order to own a low-cost, low medium-cost or affordable housing unit in Penang, one must be a registered voter in Penang.
Also present were state exco members Phee Boon Poh, Dr Afif Bahardin and Lim Hock Seng and Seberang Perai Municipal Council (MPSP) president Datuk Rozali Mohamud.
For more details on the ‘Rent to Own Scheme’, call 04-296 9222.