Short-term economic recovery plan (ERP) introduces attractive stimulus measures
On 5th June 2020, Malaysia’s Prime Minister Tan Sri Muhyiddin Yassin announced the PENJANA – Short-Term Economic Recovery Plan (ERP) worth RM35 billion. The ERP is the fourth of the six-phase 6R approach (Resolve, Resilience, Restart, Recovery, Revitalise and Reform) to overcome the economic downturn caused by the pandemic.
There are many stimulus measures being introduced to revive the economy and ensure businesses can slowly improve. One of the measures to help boost the property market is the reintroduction of the Home Ownership Campaign (HOC), which will end on 31st May 2021.
The main focus of HOC was to increase the home ownership among Malaysians and will bring about a positive change in the property market. This campaign is offering full stamp duty exemption on the Sales and Purchase Agreement (SPA) signed from June 1, 2020 to May 31, 2021 for property priced between RM300, 000 and RM2.5 million. If your property is priced between RM300, 000 and RM1 million, there’s a full stamp duty exemption on the instruments of transfer. On top of that, selected projects from participating property developers will enjoy a minimum of 10% discount.
Besides that, the government added two other measures which include the lifting of the 70% loan-to-value for the third property valued at RM600, 000 and above, and the real property gains tax (RPGT) exemption for up to three disposals per person. These two measures are effective June 1, 2020 to Dec 31, 2021.
Other than that, developers all across Malaysia are offering special ‘MCO package’ or ‘stay-at-home package’. Majority of the offers include zero booking fees, zero down payment, zero legal fees, zero interest charges during construction and zero cancellation fees. While others have booking fees of a few hundred ringgit and free 24 months instalment plans.
With all of these stimulus measures and attractive packages being offered, now might be the best time to buy property since it currently is a buyers’ market.