THE government’s good intentions of easing homeownership among the less affluent segment of the society by planning six new home loan schemes could be detrimental to the buyers in the long run as house prices might remain on the higher spectrum.
Institute for Democracy and Economic Affairs senior fellow Dr Carmelo Ferlito (picture) said the additional credit is “dangerous at two levels”.
“One, it fuels a credit-oriented mentality, when it is necessary for Malaysians to learn how to live according to actual possibilities, rather than on borrowed money.
“Two, it puts Malaysians at risk in the long run, as low-income classes are more fragile from the financial perspective. Further credit will spread in the medium and long run, where the risk of facing difficult moments increases,” he told The Malaysian Reserve.
