Property Investment 101: First Time Home Buyer and Stamp Duty Exemption
Good news for first-time home buyers
This was announced earlier but I think many may have missed the news because I do not read that many articles about firs time home buyers being super excited with it. Yes, this is definitely good news for many potential homebuyers. Not sure how many first time homebuyers were waiting for this extra savings when they buy their very first property. Please note that full exemption is only for properties priced RM500,000 and below only. This is valid until end of 2025.
For residential properties purchased worth between RM500,0001 to RM1 million, first time home buyers will get a 75% stamp duty exemption up until 31st December 2023.
Article in malaymail.com To help more Malaysians buy their first homes, the government will continue to give full stamp duty exemption for those who purchase property at RM500,000 and below. For homes valued between RM500,001 to RM1 million, first-time buyers are given a 75 per cent stamp duty exemption, an increase from the previous 50 per cent exemption.
Muhammad Ikram, a 30-year-old lawyer, said that he appreciated the stamp duty exemption as he was buying a home in Seremban worth some RM600,000, with his soon-to-be wife. “The stamp duty would have been more than RM12,000. So I think that’s quite good. It’s money that can go towards my wedding later,” he said. Do read the full article here: Article in malaymail.com
No Stamp Duty does NOT mean I simply buy yeah
Buying the wrong property is far worse than not saving on stamp duty yeah. Do enough research, do enough comparisons and do enough objective evaluations before actually buying a property. Then again, not saving on stamp duty when there is such an exemption is also a big loss yeah. The money saved could be used for vacation or for some of the air-conditioner units for the new home etc.
How to save enough for that first property?
My advice is that if any first-time home buyer is thinking of buying, it’s important to see where most of your money is spent every month. If most of it went to unnecessary stuffs, then this is the best time to buy that first property and channelling all these unnecessary expenses into a necessary investment. It’s also called FORCED SAVINGS and you will be glad you did that versus changing a new smartphone every year for example. That was what happened to me for my first property. Suddenly I was extremely careful how much I spend on food, how much I spend for movies, how much I spend for anything everyday!
First property is just a start!
After my first property, it became clear to me that it’s possible to buy, work harder and be prepared for the second property. Second property was my second home, third property was in Kelana Jaya (which eventually became my home many years later when I moved to Kuala Lumpur) and 4th and so on. Remember, a journey of a thousand miles begins with the first step yeah. Starting is the hardest. I can safely tell you this was my feeling too.
Happy deciding and remember, do not buy if you could not afford. No point stressing yourself too.
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