Malaysia Budget 2025 for the property market? Help is coming…

Malaysia Budget 2025 for the property market? Help is coming…

Let’s just say that I do not agree if people were to buy a property at a price way above what they could afford because they believe they will get a lifeline from the government if something goes wrong along the way. If I could be happy to buy an apartment in a less prime area when I was much younger, why must the buyers of today only wanting to buy a condo instead? Or only want that certain area and thus having to pay a higher premium instead? They deserve something MORE than me? So, please just buy within your means and budget. Period.

So, hopefully whatever help is granted to first-time property buyer will not make them suffer financially and in the end make taxpayers suffer as well since the money to help these financially stressed buyers will come from the taxpayers.

Help for first-time home buyers

Info Source: penangpropertytalk.com

Housing Credit Guarantee Scheme (SJKP)

• Will guarantee loans of up to RM500,000 for first-time home buyers purchasing homes on wakaf land.
• The SJKP has approved RM12.8 billion in government guarantees, benefiting over 57,000 first-time home buyers.

Housing Tax Relief

• A tax relief of up to RM7,000 is available for the purchase of residential properties priced up to RM500,000, aimed at encouraging first-time homeownership.
• For properties priced between RM500,000 and RM750,000, a tax relief of up to RM5,000 is offered.
• These reliefs can be claimed for three consecutive assessment years for sale and purchase agreements completed between January 1, 2025, and December 31, 2027.

Affordable Housing Initiatives

• The government has allocated RM900 million to implement 48 People’s Residency Programs (PRR) and 14 Rumah Mesra Rakyat (RMR) projects, including new PRR developments in Port Dickson and Seberang Perai Tengah.
• By the end of 2025, 30 PRR projects are expected to be completed, benefiting nearly 17,500 new residents.
• A maximum of RM90,000 in financial aid will be provided for the construction of new homes, including for residents of the hardcore poor housing programme (PPRT), fishermen, and Chinese new villages.
• The maximum allocation for people’s homes repair assistance has been increased to RM20,000.
• UDA Holdings Bhd (UDA) will receive RM200 million to develop affordable housing on wakaf land, while the Public Sector Home Financing Board (LPPSA) will support civil servants purchasing homes on such land.

Housing and Facilities Maintenance

• RM200 million has been earmarked for the maintenance of low- and medium-cost public strata homes, including replacing old elevators.
• RM100 million will be used to upgrade 48 Madani Public Parks, enhancing recreational spaces across cities and towns.
• RM84 million has been allocated to upgrade basic and social facilities in Chinese New Villages.
• The Housing and Local Government Ministry will coordinate efforts to address the needs of Indian settlements.

— end of reference — Please refer here: penangpropertytalk.com

By end 2025, another 17,500 people will have a home

I personally think we need to keep helping people when it comes to owning a roof over their head. This is because property is always one leading cause of poverty. Imagine two families, one with a home which they have started to pay for a 30 year old mortgage. Another family did not and they chose to rent instead. After 30 years, the former will have a property and stop paying rental. The other would continue paying rental this generation, next generation and for generations to come as long as no one actually started the property ownership journey. We need just one to stop paying rental.

Else, rental per year could be RM18,000 but 10 years… 20 years… Forever…? You get the idea yeah, all the wealth going to someone else. This is also why people say the rich gets richer and the poor stays poor or becomes poorer. The home owners are unlikely to ask the tenant to stop paying rental after 30 years yeah. Happy deciding.

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