Rehda: Stamp duty exemption for purchase of first house worth up to RM500,000 will encourage home ownership

KUALA LUMPUR, Nov 6 — The Real Estate and Housing Developers’ Association (Rehda) Malaysia today welcomed the federal government’s announcement of stamp duties exemption on transfer and loan agreement for residential units priced RM500,000 and below as well as for ‘white knight’ contractors and original purchasers of abandoned projects.

Rehda president Datuk Soam Heng Choon said that these were part of its Budget wish list.

He thanked the government for easing the burden of first-time house buyers as well as those who are affected by abandoned projects, especially during the Covid-19 pandemic.

“Rehda welcomes the government’s initiative to encourage home ownership amongst the rakyat.

“Expanded from houses costing RM300,000 earlier to RM500,000 for a period of five years, we believe that the stamp duty waivers will benefit a lot of Malaysians who find it hard-pressed to own a house, particularly those in the B40 and M40 group.

“This incentive (of Stamp Duty Exemptions for abandoned projects) will definitely give peace of mind to purchasers who have been severely affected after the units they bought were abandoned.

“Similarly, the stamp duty waivers for the white knights (contractors) will hopefully encourage more contractors to come in and rescue abandoned units which eventually will realise the dreams of home buyers to have their own homes,” he said in a statement today.

Seom, on the other hand, also hoped that the Rent-to-Own Scheme for PR1MA housing would be extended to more units as it will benefit more people.

“We believe that the various recipients of this allocation namely Program Perumahan Rakyat, Syarikat Perumahan Negara Berhad’s Rumah Mesra Rakyat and Program Perumahan Penjawat Awam Malaysia will provide the much-needed relief  for those in need.

“We thank the government for including our proposals in this Budget 2021, which signifies their commitment to listening to industry players, the rakyat and our plights. We believe the allocation will also benefit the other 200 other downstream and upstream sectors and the people behind them,” he said.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz earlier tabled the Budget 2021 today with the theme Teguh Kita, Menang Bersama (Stand United, We Shall Prevail), in the Dewan Rakyat.

Budget 2021 is the largest budget in Malaysia’s history, with a total of RM322.5 billion compared to RM297 billion for Budget 2020.