In an effort to increase home ownership in Malaysia, the government will be implementing certain initiatives in accordance in 2021, as announced by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in today’s presentation of Budget 2021 in parliament.
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Housing & Maintenance:
The first initiative includes RM500 million for the construction of 14,000 housing units for lower income families, under the Program Perumahan Rakyat.
Secondly, RM315 million will be going into the construction of 3,000 Rumah Mesra Rakyat units, under the Syarikat Perumahan Negara Berhad (SPNB).
RM125 million has been allocated for the maintenance of low cost housing, with assistance going to the repairs of houses that are getting too old or have endured natural disasters.
The fourth initiative includes RM310 million for the Program Perumahan Penjawat Awam Malaysia, a housing program for civil servants.
Rent-to-Own:
The government will also be working together with financial institutions to prepare a Rent-to-Own programme, which will be implemented up until 2022, for 5,000 PR1MA properties, worth RM1 billion in total. This programme will specifically be for first time home buyers.
Stamp Duty Exemptions:
On top of all that, the government will be exempting of stamp duty for transfer documents and loan agreements, for purchase agreements completed from 1 January 2021 to 31 December 2025, for homes priced at RM500,000 and lower. This initiative is for first time home buyers.
There is also an extension of five years for the exemption of stamp duty for transfer documents and loan agreements for rescue contractors and buyers of abandoned houses, with purchase agreements completed from 1 January 2021 to 31 December 2025. This is only valid for abandoned houses approved by the Ministry of Housing and Local Government.
Stay tuned for more updates.
Also read: Budget 2021: Here’s Everything You Need To Know About The BPR Initiative