Propsocial property malaysia 2017 budget 1
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Malaysia’s Budget 2017 was recently tabled, here’s a short take on what’s installed for the Malaysian property market in 2017.


Buying property

1. Exemption of 100% stamp duty for first time home buyers

First time homebuyers can rejoice with 100% exemption of stamp duty on the instruments of transfer (documents such as the Sales and Purchase Agreement and Memorandum of Transfer) and those related when applying for their housing loans. This is to somewhat ease the financial burden of first-time home buyers.

*Note: The exemption only applies to homes with a maximum value of RM300,000 and is valid from 1st January 2017 to 31st December 2018.


2. Easier financing for property buyers

Loans totalling 90% to 100% will be more accessible, with loan rejection rate to be significantly reduced. (e.g.: Those with incomes of RM3,000 per month may apply for a loan of more than RM295,000 after this, compared to RM187,000 currently).


3. Government plans for housing

- Perumahan Rakyat 1Malaysia (PR1MA) and Government-linked companies (GLCs)

Vacant lands in strategic locations will be allocated to PR1MA and GLCs for the construction of more than 30,000 homes. Prices of the homes will range between RM150,000 to RM300,000 (below market prices of RM250,000 to RM400,000).


- Housing for urban youths

The government also announced plans for 10,000 build-to-rent homes in urban communities, which eligible youths who hold permanent employments can rent at prices below market rate. This is inclusive of graduates just entering the workforce.

*Note: Rental period is only for 5 years.

- Introduction of MyBeautiful New Home

The scheme aims to help those with monthly incomes of RM3,900 or lower (B40 or bottom 40% of households) to be able to have their own homes.

RM200 million will be allocated for this new programme, beginning with 5,000 units (each priced between RM40,000 to RM50,000).

The homes will be built on vacant lands provided by the government and the government will offer RM20,000 of finances for each home. The owners will then pay off the remainder in instalments.

- People’s Friendly Home (PMR)

About 5,000 PMR homes will be built, with the government providing a maximum subsidy of RM20,000 for each unit.

- People’s Housing Programme (PPR)

9,850 PPR homes will be built, with RM134 million afforded to the Ministry of Urban Wellbeing, Housing and Local Government to achieve this.

The 11,250 PPR homes currently being built will be sold at prices beginning from RM35,000 to RM42,000 (significantly lower than the costs to construct them, about RM120,000 to RM160,000 each).


- Civil servants’ housing and loan eligibility
30,000 homes will be completed under the 1Malaysia Civil Servants Housing (PPA1M) programme, with unit prices ranging between RM90,000 to RM300,000 (20% less than market price).

Housing loan eligibility for public servants is also increased to between RM200,000 and RM750,000 from a range of RM120,000 to RM600,000.



Selling/transferring property

Increase of stamp duty imposed on transfer of RM1 million and above properties
Increase to 4% (from 3% previously) of stamp duty imposed on the instruments of transfer in the case of properties worth RM1 million and more, beginning from 1st January 2018.


Owning property

Grant for residents’ associations for maintenance and security
Reintroduction of a maximum RM10,000 grant to registered Residents Associations, to be used for neighbourhood maintenance and the acquisition of security equipment.


Conclusion

Sentiments for the coming year has been less than optimistic, with fears of a worsening economy and an even slower property market. With the announcement of Budget 2017, perhaps there may be a silver lining as more efforts are in the pipeline to help make property more affordable to all.


What do you think of Budget 2017? Are you optimistic about the coming year? Share your views comments below or join in the
Discussions with the friendly PropSocial community!



(Sources: http://www.theedgeproperty.com.my/content/942853/malaysia%E2%80%99s-budget-2017-%E2%80%94-quick-take-property , http://www.thestar.com.my/news/nation/2016/10/21/budget-2017-highlights/)

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- Housing for urban youths

The government also announced plans for 10,000 build-to-rent homes in urban communities, which eligible youths who hold permanent employments can rent at prices below market rate. This is inclusive of graduates just entering the workforce.

*Note: Rental period is only for 5 years.

Sounds to me like a plan to fail...enlighten me please...

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does not benefit me much. 

Kate chew small

The increase in affordable homes surely do help a lot..... I heard the criteria has been reduced too, for example previously only people with monthly income of RM3k and below is eligible but I heard it's now RM10k and below. Not sure if this is true?

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