Maybank Islamic's rent-to-own scheme features five developers

KUALA LUMPUR (Nov 23): Five established developers — S P Setia Bhd (SP Setia), Eco World Development Group Bhd (EcoWorld), Mah Sing Group Bhd, Gamuda Land and Sime Darby Property — are participating in Maybank Islamic Bhd's HouzKEY, the first bank-initiated rent-to-own (RTO) product in Malaysia.

"The unique thing about this RTO scheme is the financial packaging, which allows the purchasers to own a house without having to fork out a big downpayment," S P Setia president and CEO Datuk Khor Chap Jen told EdgeProp.my at the sidelines of the launch of HouzKEY today.

* Malaysia’s first of its kind rent-to-own scheme
* 100% stamp duty exemption on SPA for bank-initiated RTO schemes

He added that one of the biggest challenges for homebuyers, especially first-time homebuyers, is the big sum required for an upfront payment.

In addition, it is also very difficult for them to save up enough money for their home purchases owing to high financial commitments, such as study and car loans, he added.

And by the time they are able to save up the money, the property prices would have gone up already. "However, this RTO scheme allows them to lock-in the price [and purchase the house later on], which I think this is where it makes a difference," he said.

S P Setia is currently showcasing three projects in the RTO scheme, including the 2-storey Emersus terraced houses in Precinct 17 of Setia Alam.

Meanwhile, EcoWorld president and CEO Datuk Chang Khim Wah said the scheme gives young couples and families a head start in life by owning a home, more so during challenging times.

"The RTO scheme opens up opportunities for EcoWorld to partner with Maybank in line with our vision of ‘creating tomorrow and beyond’ and the bank's goal of humanising financial services," he said.

So far, EcoWorld is participating with less than a hundred units of serviced apartments in Eco Sky at Taman Wahyu, Kuala Lumpur.

Located just 8km from the city centre, the 9.6-acre Eco Sky integrated development which has a GDV of RM1 billion comprises serviced apartments, 140 units of shopoffices and a commercial pod as well as a 2.7-acre park.

Gamuda Land, on the other hand, is participating with its serviced apartment project Jadite Suites in Jade Hills, Kajang.

Sitting on a 5.28-acre freehold site, Jadite Suites is a low-density residential project with only 366 units across four towers. Phase 1 of the project has fully sold while phase 2 has 100 unsold units, of which 17 units is offering through the RTO scheme, according to Jade Hills general manager Lam Sew Chee.

The units have a built-ups of between 1,200 and 1,400 sq ft with two layouts – 3 bedrooms and 3+1-bedrooms.