5 satisfactory level on civil servant housing - Penerbit UTM

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Sustaining Housing Market and Development
Since in this case study the household come from the lower and
middle income groups the affordable housing is the low and
medium cost with the price below RM120,000. This paper also
found that the household income can also influence the types of
affordable housing and thus it affordable price.
RECOMMENDATION AND CONCLUSION
Apart from the above findings, a household affordability for
housing has to take into consideration on the financing aspects. In
financial aspect the question of loan repayment is depend on the
rate of interest, financing period, the amount of loan and also the
household income. The household income is used to calculate the
eligibility of loan amount. According to Ahmad Ariffian Bujang
(2006), the affordability of a household on the price of the house
can be calculated by taking into consideration of the 30 percent
allocation from income for housing, rate of interest and financing
period. The formula used is as follows:
-n
Hg = Y (x%) x 1 - (1 + i)
i
Where:
Hg = Affordable housing price
Y = Household income
x% = Allocation for expenditure to pay loan (percentage
from income)
i = Rate of interest
n = Financing period (years)
Table 10 illustrate the calculation of the household
affordability for housing based on 30 percent is allocate from
income for 0 years, 25 years and 30 years financing period at the
rate of interest of 6 percent per annum (bank loan). The gross