What you MUST know about Budget 2021: For the real estate sector

KUALA LUMPUR (Nov 6): Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has tabled Budget 2021 today. 

It is widely expected to be one of the biggest federal budgets, with a total of RM322.5 billion or 20.6% of the GDP will be allocated in the Budget 2021, of which RM236.5 billion (73.3%) is for operating expenditure, RM69 billion (21.4%) for development expenditure (DE) and RM17 billion (5.3%) for the Covid-19 fund.

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Here are some of the highlights that are related to the real estate industry:

1. Full stamp duty exemption on Memorandum of Transfer (MOT) and loan agreement for the first home priced below RM500,000. This is for agreements inked from January 2021 to December 2025;

2. The extension of the stamp duty exemption on loan agreement and MOT given to rescue contractors and original buyers of abandoned houses for another five years. This exemption is effective for the loan agreements and MOT executed from January 2021 to December 2025 for abandoned housing projects certified by the Ministry of Housing and Local Government (KPKT);

3. RM1.2 billion provision for the construction of comfortable and quality housing for low-income earners:

I. RM500 million to build 14,000 housing units under People's Housing Project (PPR);

II. RM315 million for 3,000 units of Rumah Mesra Rakyat built by Syarikat Perumahan Negara Bhd (SPNB);

III. RM125 million for maintenance of low and medium-low cost strata-housing and also for upgrading of old houses and those damaged by natural disasters;

IV. RM310 million for Malaysia Civil Servants Housing Programme (PPAM)

4. 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.

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