To assist those who are unable to pay 10% deposit and to secure the access of home purchase financing, the government will be working with financial institutions to introduce a Rent-To-Own (RTO) scheme.
Through this scheme, RM10 billion financing will be provided by financial institutions with the government’s support through a guarantee provision of 30% or RM3 billion.
This RTO scheme is open to the purchase of a first home worth up to RM500,000.
Under this programme, the applicant will rent a house for a period of up to five years and after a year, he/she will be given the option to purchase the relevant residential house at a fixed price when the rental agreement is signed.
The government will also provide the full exemption of stamp duty on transfer instruments between developers and financial institutions, as well as between financial institutions and the prospective buyers.
Lower foreign buying threshold in urban areas
To reduce the high number of unsold condominiums and apartments amounting to RM8.3 billion in the second quarter of 2019, the government will lower the foreign buying threshold for condominiums and apartments in urban areas from RM1 million to RM600,000 in 2020.
Home Ownership Campaign
To date, approximately 21,000 homes worth RM13.44 billion were successfully sold under this campaign which exceeded the initial sales target of RM3 billion.
Bank Negara Affordable Housing Fund
As at September 2019, a total of 2,840 applications amounting to RM472.7 million were received.
The approval rate is 77.9%, with 982 total applications worth RM156.2 million being approved.
Youth housing scheme
To help the youth own their first home, Putrajaya will extend the youth housing scheme conducted by BSN from 1 January 2020 until 31 December 2021.
The scheme also offers a 10% loan guarantee through Cagamas to enable the borrower to obtain full financing and assistance of a monthly instalment of RM200 per month for the first two years, limited to 10,000 units of houses.
In response to the public’s views on the Real Property Gain Tax (RPGT) imposed on disposal of properties after five years, RPGT treatment will be enhanced by revising the base year for asset acquisition at 1 January 2013 for assets acquired before 1 January 2013 as compared to the previous base year of 1 January 2000.
Making sure the lifts are safe
The government cares about the state of low and medium-cost stratified houses that are not properly maintained. In 2020, the government will allocate a total of RM100 million to ensure that the services of elevator, electrical wiring, sewerage pipes and roofing are safe and in good condition.
Bandar Malaysia project to go on
The government has decided to continue the Bandar Malaysia project which spans 486 acres in Sungai Besi, Kuala Lumpur after negotiating to obtain better terms for the government. The project will include a people's park, with an increase of 5,000 units of affordable houses and an increase in the involvement of Bumiputera contractors in the project. The proceeds from this project will be evaluated and announced later, and will be used to reduce 1MDB debts.
Help for FELDA folk
RM70 million allocation for housing for new generation of FELDA settlers. RM90 million for upgrading of roads and basic infrastructure in the FELDA area.
Developing Carey Island
The government is implementing feasibility studies for the development of Carey Island for its next growth phase to make Port Klang the Regional Maritime Center and cargo logistics hub. The government expects to spend RM8 billion to improve port infrastructure and turn Port Klang and Pulau Carey into regional maritime centres and logistics hubs.
HBA: Do not neglect the hidden risks while encouraging homeownership
Economists and analysts: A balanced and positive budget
PAM commends the initiatives proposed, but notes room for improvement
Impact of lowering foreign buying threshold depends on states
Don’t send the wrong message by helping dilapidated strata housing, says BMAM
Rehda institute lauds move to encourage home ownership through RTO
Budget 2020: Rahim and Co cautions potential home buyers to not take on too much debt, has neutral outlook on Budget 2020
MIPFM: The real challenge of strata housing maintenance lies in the collection of maintenance charges
Budget 2020 a boon for Johor economy and property, says KGV International Property Consultants
Budget 2020: Still need more to stimulate property market, says Rehda
New foreign buying threshold should be location-based and limited to unsold completed units
New measures will spur property market, says Fiabci
What Malaysia's banking chiefs say about Budget 2020
MBAM: Implement infrastructure projects quickly, contractors running out of jobs
Penang condos priced RM500,000-RM600,000 may rise on lower foreign buying threshold
Mah Sing hopes for continuous improvements on RPGT
Estate agents: Budget 2020 below expectation especially on RPGT
Budget 2020: 'It’s a low-profile Budget, but better than an overambitious one,' says IDEAS
CBRE-WTW: Ensure local buyers not affected by lower threshold for foreign ownership
Johor-Singapore rail link to proceed, but details scarce
Putrajaya raises minimum wage to RM1,200 for urban workers
Cabinet approves takeover of KESAS, LDP, Sprint and SMART Tunnel
Those earning over RM2m a year to be taxed 30%
Govt to proceed with Bandar Malaysia
Budget 2020: RPGT base year to be revised
Budget 2020: Lower threshold for foreign purchases
Rent-to-own financing scheme to be introduced
Govt jobs worth RM1.3b dedicated for bumiputera contractors
Economic Outlook 2020 Report: Federal Govt widens 2020 fiscal deficit target to stimulate growth
Economic Outlook 2020 Report: Malaysia's total debt, liabilities rose to RM1.17t as at end-June
Economic Outlook 2020 Report: CPI seen rising 2% in 2020 after 2019's estimated 0.9% hike
Economic Outlook 2020 Report: Malaysian economy to grow 4.8% in 2020 vs 4.7% in 2019
Economic Outlook 2020 Report: Household debt increases slightly to RM1.22 tril
Economic Outlook 2020 Report: Infrastructure development to support construction and real estate services
Economic Outlook 2020 Report: Residential segment growth muted
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