PETALING JAYA (April 17): M Summit Group has introduced the first rent-to-own (RTO) scheme in Penang for limited units of its condominium project in Teluk Kumbar, Penang island.
M Summit Group founder and managing director Datuk Albert Moh said 50 units of Ramah Pavilion are allocated for the RTO scheme, which allows homebuyers to enter a rent-first, buy-later contract with the developer.
“We don’t want to merely build houses for the rich. I 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,” Moh said in a press statement today.
Ramah Pavilion comprises two blocks of 39 and 36 stories with a total of 759 condominium units with built-ups ranging between 800 sq ft and 1,350 sq ft.
The minimum selling price for a unit is around RM408,000.
Facilities in the Ramah Pavilion condominium including a swimming pool, kids’ splash pool, Jacuzzi, indoor and outdoor playgrounds, games room, barbecue area, biking track, outdoor function areas as well as a function hall.
Beside this, there are 15 retail units at the ground floor which will offer amenities to the residents.
More than 90% of the units have been taken up since its launch in 2014, and the project is expected to obtain its Certificate of Completion and Compliance (CCC) in May.
This programme aims to help interested buyers who do not currently have the financial strength to own a property at present selling prices by allowing them to rent the unit first, before purchasing the property at the same price.
Under the RTO scheme, the monthly rental collected over the first five years will be treated as 20% of the unit’s price.
Before the lease tenure expires, the RTO scheme buyers have the option of signing a Sales and Purchase Agreement to purchase the unit, with the rent collected converted into a deposit.
During the lease tenure, the developer will bear the assessment, quit rent and insurance of the rented units while the tenant merely pays for the monthly maintenance and sinking fund charges.