fbpx
Previous
Next

Advertisement Banner

What’s in Budget 2021 for property market? More than 4 positive things.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

What’s in Budget 2021 for property market? There are definitely more than 4 things. There could be more as we go along I believe but for now, here are some good news, especially to targeted groups.

#1 – The RM500,000 or below starter homes likely to boom

Buyers for first homes priced below RM500,000 will get FULL STAMP DUTY exemption on Memorandum of Transfer (MOT) and loan agreement. This is effective for agreements inked from January 2021 all the way to December 2025. If this is not attracting first time home buyers to buy, I am not sure what else would. Perhaps the only stumbling block would be the downpayment which may not be easy. 10% for a RM400,000 home is still RM40,000.

How much could one save if they bought a RM500,000 home for the stamp duty? Enough for a budget trip for two to Japan for 7 days… Alternatively, enough downpayment a brand new car priced from RM90,000 or lower.

Budget 2021 for property market

#2 – Rent-To-Own scheme for FIRST-TIME home buyers only

Government to cooperate with selected financial institutions to provide a Rent-to-Own scheme. This programme will be implemented until 2022 involving 5,000 PR1MA houses with a total value of more than RM1 billion and reserved for first-time homebuyers. This is a SUPER important measure in my opinion. Many may want to buy a home but may not yet have enough downpayment. With this scheme, the buyer can start to become more responsible and may have a chance to own a home a few years down the road.

#3 – Stamp Duty exemption on stamp duty exemption on loan agreements and transfers given to rescue contractors and original buyers of abandoned houses

This has been extended for another five years. Finance Minister Datuk Seri Zafrul Tengku Abdul Aziz said, “This exemption is for the sale and purchase agreement completed from Jan 1, 2021 until Dec 31, 2025 for abandoned housing projects approved by the Ministry of Housing and Local Government.”

#4 – New homes under People’s Housing Programme and Rumah Mesra Rakyat

RM1.2 billion will be provided to build up to 14,000 houses under the People’s Housing Programme and RM315 million to build 3,000 units of Rumah Mesra Rakyat by Syarikat Perumahan Negara Berhad (SPNB). 

Only 4 things mentioned above on Budget 2021 for property market. Where’s the 5th one? Actually, the above is to stimulate the property market and it is targeted at first time home buyers which will be a very big group. By the way, majority of buyers are buying RM500,000 priced homes or lower and not homes priced above RM500,000. Thus, if the property market moves, this will create a lot of positive stimulus effects to the construction industry too. In other words, these 4 things done right will create more than 4 benefits listed above. Happy thinking about it, seriously. (I meant first-time home buyers)

Love to be updated of investment news? Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Next suggested article: Priorities for First-Time homebuyers in Budget 2021

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Previous
Next

Advertisement Banner

kopiandproperty.com

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.
Previous
Next

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,420 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: