To apply, purchasers merely need to select from the list of participating properties and submit the relevant documents – all of which can be done online via the maybank2own portal.
Upon approval – which can be obtained within 1 working day – successful applicants and their guarantors will have 7 days to pay the 3-month rental as security deposit and sign the lease agreement.
The contract period runs for a minimum of 5 years, with an option to renew every 3 years for a maximum of up to 30 years.
Rental for the first 5 years will be fixed at a flat rate, but should the tenant decide to go for the renewal option, there will be an annual 2% increase in the rent.
After servicing a 12-month rental period, tenants can choose to exercise the option to purchase by migrating to a mortgage facility.
The property price is locked from day one and the rental amount paid will reduce a portion of the property price [akin to mortgage repayment] hence, the optional purchase price at the later date will be lower than day one’s property price.
This would explain why the rental payments are higher than the monthly repayments for housing loans, as the down payment is already bundled into the rent.
HouzKEY also offers a Cash Out option for tenants who decide not to purchase the property after the 12-month period, allowing them to earn some cash based on the property’s capital appreciation.
This works by having the tenant buy the property on paper before selling it off to another buyer – which Maybank can assist in finding – at the current market price.
If the selling price is higher than the purchase price which was locked in when the tenant signed the agreement at the start of the lease tenure, he or she benefits by pocketing the difference.
A third option exists for tenants who can choose to walk away from the scheme at the end of the five-year tenure without any penalties and still get a full refund of the three-month deposit.
Source from: Focus Malaysia