The incentives introduced to stimulate the property market has presented a series of benefits for the average house buyer. Here are some details on what those in the market for new properties can take advantage of and benefit from throughout 2021.

Stamp Duty Exemption for First-Time Homebuyers till 2025

• During the tabling of Budget 2021, the government announced there would be stamp duty exemptions for Memorandum of Transfer (MOT) and loan agreements for first-time house buyers who purchase a residential property between January 1, 2021 to December 31st, 2025.
• Homes worth up to RM500k are eligible for this discount, so long as the Sales and Purchase Agreement (SPA) is signed within the stipulated period.
• To get an idea of how big of a discount this is, a home selling for RM500k costs RM11,250 in stamp duties.

Rent-To-Own Scheme (RTO) For PR1MA Homes

• This is a program worth RM1 billion and runs until 2022, involving 5,000 PR1MA properties. Despite this announcement having come at the end of 2020, we are still awaiting further details on this scheme.
• The benefit of such a program is that you don’t need to fork out a downpayment in order to acquire the home and you lock in the current market price of the property when your contract is signed — ensuring your financial investment will not have to increase over time.
• Buyers can also choose to purchase the property at the end of the contract or walk away. Depending on the scheme chosen, part of the money paid as rental can serve as down payment if you decide to purchase.

More Homes for Lower-Income Groups

Among the incentives announced by the government include affordable housing for the B40 group, here in Malaysia. The incentives include:

• RM1.2 billion allocated to build housing for low-income house buyers
• RM315 million allocated to build 3,000 units of Rumah Mesra Rakyat
• RM500 million allocated to build up to 14,000 housing units under the People’s Housing Program (PPR)
• RM310 million for the Civil Servant House Program (Program Perumahan Penjawat Awam Malaysia)

What does this mean for me, a first-time house buyer?

The incentives introduced by the government make for an attractive offer for first-time house buyers, as the discounts in the form of stamp duty exemptions are significant. The commitment to affordable housing is emphasized with the planned RTO scheme and increased housing for lower-income groups. Throughout 2021 and the coming years, it seems that first-time house buyers can benefit from these incentives and begin efforts to purchase their first home.

What does this mean for me, someone who’s part of the real estate industry?

Any scheme or incentive that spurs increased buying and selling within the property market is good news for real estate agents as the potential of completing transactions, and making a handsome commission in the process, grows too.

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