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Budget 2020: Housing Highlights

October 11th, 2019 Leave a comment

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Rent-To-Own scheme

To assist those who are unable to pay 10% deposit and to secure the access of home purchase financing, the government will be working with financial institutions to introduce a Rent-To-Own (RTO) scheme.

Through this scheme, RM10 billion financing will be provided by financial institutions with the government’s support through a guarantee provision of 30% or RM3 billion.

This RTO scheme is open to the purchase of a first home worth up to RM500,000.

Under this programme, the applicant will rent a house for a period of up to five years and after a year, he/she will be given the option to purchase the relevant residential house at a fixed price when the rental agreement is signed.

The government will also provide the full exemption of stamp duty on transfer instruments between developers and financial institutions, as well as between financial institutions and the prospective buyers.

Lower foreign buying threshold in urban areas

To reduce the high number of unsold condominiums and apartments amounting to RM8.3 billion in the second quarter of 2019, the government will lower the foreign buying threshold for condominiums and apartments in urban areas from RM1 million to RM600,000 in 2020.

Youth housing scheme

To help the youth own their first home, Putrajaya will extend the youth housing scheme conducted by BSN from 1 January 2020 until 31 December 2021.

The scheme also offers a 10% loan guarantee through Cagamas to enable the borrower to obtain full financing and assistance of a monthly installment of RM200 per month for the first two years, limited to 10,000 units of houses.

RPGT tweaked

In response to the public’s views on the Real Property Gain Tax (RPGT) imposed on disposal of properties after five years, RPGT treatment will be enhanced by revising the base year for asset acquisition at 1 January 2013 for assets acquired before 1 January 2013 as compared to the previous base year of 1 January 2000.

Home Ownership Campaign

To date, approximately 21,000 homes worth RM13.44 billion were successfully sold under this campaign which exceeded the initial sales target of RM3 billion.

Bank Negara Affordable Housing Fund

As at September 2019, a total of 2,840 applications amounting to RM472.7 million were received.

The approval rate is 77.9%, with 982 total applications worth RM156.2 million being approved.

Making sure the lifts are safe

The government cares about the state of low and medium-cost stratified houses that are not properly maintained. In 2020, the government will allocate a total of RM100 million to ensure that the services of elevator, electrical wiring, sewerage pipes and roofing are safe and in good condition.

Source: EdgeProp.my

 

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