I hope first-time home buyers read enough articles (personal finance, property blogs, etc) to understand that even if it may not be the best time ever (in our lifetime) to buy a property, it is definitely a good time today. The developers are more willing to provide a good deal and the government is offering an exemption of stamp duties too which is quite substantial if we are to pay for it when we buy a property. Article on Stamp duty calculation. Here’s one more suggestion for the benefit of first-time home buyers. This comes from Malaysia Institute of Estate Agents (MIEA).
Article theedgemarkets.com here. MIEA opined that the Home Ownership Campaign should also include first-time homebuyers of the secondary market as the market makes up around 80% of all residential property transactions in the nation. It suggested that the incentives for properties under HOC should also be extended to the secondary market as there are more affordable homes in said market. Currently, Malaysian homebuyers are entitled to stamp duty waivers and a minimum 10% discount from developers for properties under the HOC. In a statement, it said, “We should allow for the exemption of stamp duties (on the instrument of transfer and loan agreement for sales and purchase) to cover the purchase of homes within the secondary market by first-time buyers. This will also support the government’s overall goal of encouraging home ownership.” Article theedgemarkets.com here.
Actually, one major reason for buyers being more focused on new properties is because of the downpayment. Some may not have saved enough and in the secondary market, the owners may not want to reduce their prices, thus downpayment becomes a major issue. However, there are definitely first-time home buyers who may prefer to buy from the secondary market because some of these older properties may be in locations they like versus newer properties which may be in newer locations. Buying a secondary property also meant that the buyers could move in earlier instead of waiting for the new development to be completed. If the focus is ONLY on first-time home buyers, I think this suggestion is indeed a good one for Malaysians. Will update when it happens. Happy following.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
written on 5 March 2019
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