Introduction to Budget 2024
All the efforts drawn up will follow every priority and benchmark of the MADANI Economy which is broken down into three main focuses which are:
The increased allocation totals RM7.7 billion, representing a significant boost from the previous budget.
Prime Minister Anwar Ibrahim has stated that the government has taken on a debt and liabilities burden amounting to RM1.5 trillion, equivalent to 82% of the country’s GDP.
Real Estate Highlights
This enhancement of the MM2H program is anticipated to bolster investment activities within the Malaysian financial market and stimulate growth in the country’s real estate sector.
Outlook for 2024
The 2024 budget will mark a pivotal moment for the nation’s economic development, with the government expected to introduce robust policies to provide substantial assistance to the people.
This budget is anticipated to fuel sustained economic development and contribute positively to the nation’s prosperity and the well-being of its citizens.
As we await the budget announcement, we look forward to witnessing the potential positive impact on the real estate sector and various key industries, paving the way for progress and growth.
]]>Acara yang dianjurkan oleh Persatuan Pemaju Hartanah dan Perumahan Malaysia (REHDA) Selangor itu akan berlangsung dari 26 hingga 28 April 2024 di Pavilion Bukit Jalil bagi menjanjikan platform untuk peneraju industri, pelabur dan pembeli rumah meneroka masa depan hartanah.
Pengerusi REHDA Selangor, Datuk Zaini Yusoff, berkata MAPEX Selangor 2024 menyasarkan untuk melebihi jangkaan dengan menawarkan pengalaman yang pelbagai bagi menampilkan pameran dan ceramah untuk mencerahkan peluang rangkaiannya.
“Dengan tumpuan kepada inovasi, kerjasama dan pertumbuhan, acara ini bersedia untuk mentakrifkan semula kejayaan dalam pasaran hartanah.
“Sama ada untuk pelabur berpengalaman atau pembeli rumah kali pertama, acara ini merupakan pintu masuk perhubungan dan peluang dalam membentuk masa depan pelaburan hartanah,” katanya pada sidang media di sini hari ini.
Zaini berkata, MAPEX Selangor 2024 menjanjikan pemandangan landskap di rantau ini daripada kondominium mewah sehingga pembangunan perumahan mampu milik yang direka dengan teliti.
“MAPEX Selangor 2024 akan menjadi tuan rumah kepada siri ceramah bagi menerangi pelbagai aspek industri termasuk trend pasaran termaju, strategi pelaburan dan amalan pembangunan mampan.
“Organisasi ini mempunyai keahlian sebanyak 1,022 ahli, membentuk cawangan terbesar dalam REHDA, yang mempunyai keahlian keseluruhan sebanyak 1,800,” katanya.
]]>Themed “Membangun Malaysia Madani”, Anwar, who is also the Finance Minister, stressed the government’s aim is to alleviate the rakyat’s struggles amidst the economic challenges, while ensuring a sustainable fiscal growth for the nation.
Houses for the rakyat
In line with that, there was a list of allocations for affordable housing programmes:
Stamp duty exemptions for first homes maintained
For first-time homebuyers, the following measures announced in the October budget have been maintained as follows:
Housing credit guarantee scheme increased
The housing credit guarantee scheme has been given an allocation of RM5 billion to help up to 20,000 borrowers with no fixed income from the gig economy to get loans. This is a significant increase from the RM3 billion budgeted in October.
Stamp duty on property transfer by way of love and affection revised
The stamp duty of only RM10 for transfer of properties between parents and children, and grandparents and grandchildren, which was proposed in the October budget, has been revised to the following:
They are applicable for transfers signed from April 1 this year, and only where the recipients are Malaysian citizens.
]]>This updates edition is prepared based on the Malaysia Budget 2023 speech at 4.00 pm today.
The Malaysian Finance Minister, YB Tengku Zafrul announced the Budget 2023 speech with the theme “Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia” underlying Budget 2023 (“Budget 2023”).
An allocation of RM372.3 billion is provided for Budget 2023 as compared to RM332.1 billion in Budget 2022.
Nominal Stamp Duty for Transfer of Property by Way of Love and Affection
In previous years, 100% stamp duty waiver was only provided for transfer between spouses. From year 2023 onwards, transfer of property by way of love and affection between family members such as parents to children, husband to wife or grandparents to grandchildren will subject to a nominal stamp duty of RM10.00.
Stamp Duty Exemption for First Home Buyers
First time home buyers will get an increase in stamp duty exemption on instruments of transfer and loan agreements from 50% to 75% until 31 December 2023 for property priced between RM500,000.00 to RM1,000,000.00. The full exemption of stamp duty for property priced below RM500,000 is still applicable up to 2025.
Housing Projects for Low-Income Group
RM367 million is allocated to develop People’s Housing Projects (PPRs) in urban areas. 4,250 housing units worth RM358 million will be built under Rumah Mesra Rakyat.
Low and Medium Cost Strata Development
RM290 million is allocated to replace and maintain lift services in low and medium cost strata development.
Credit Guarantee Scheme
RM3 billion is allocated for housing credit guarantees for those without a stable income.
Subsidy for Construction and Repair of New Houses
RM460 million is allocated to subsidize the construction of new houses and repairs in rural areas. In Sabah and Sarawak, the cap price for this purpose is revised from RM68,000 to RM79,000 for each unit.
]]>Financial plan
Money matters are top of your priority list. Maintain a budget in mind for ideal properties that makes your heart skip a beat. It is crucial to take time to slowly list the amount of cash available for expenses like loan insurance, legal fees, monthly instalments and other related costs. Secondly, whip up a list of all your assets (income, savings, fix deposits, investments) and then give the two figures a comparation and roughly gauge how much you can spend on the new home.
Locality
Where is the property situated near? Are there schools, hospitals or even shopping centres nearby? You will definitely need the banks, the supermarkets and malls that you can go to on weekends to do your shopping.
Other than that, if you do not possess a car, do look out for public transportation to see if it is accessible around the property. Are the bus stops nearby, or do you have to walk a certain amount of distance?
Style of House
There are basically 2 types, the landed property and the non-landed property. Non-landed properties are primarily the flats, condominiums and apartments which are more captivating to the younger generations while Landed properties include semi-detached, bungalows and link houses that may cater to larger families. However, it all sums down to the type of home you prefer as well as the amount of income you have.
Interior of the House
It is important to examine the property externally as well as internally. The designs of the exterior and the interior, the size of the living room, how big the rooms are, how spacious the kitchen is, the types of floorings, the plumbing net works, etc. Private properties are usually furnished to a certain extend so make your way to the interior and slowly appreciate the designs and see if it’s to your liking.
It is best that you multiply your house-hunting options by attending project launches and open-houses organized by developers. Sign yourself up to mailing list for an update of future projects. From there, you can choose from the varieties of properties that suit you best. Purchasing and owning a house is a long-term investment, so It is crucial to plan before hand to enjoy a pleasant and good buy.
]]>There are some land holdings that you need to know before buying a home.
Freehold or freehold property refers to a permanent ownership interest. This property belongs to you forever and it is easily transferable from one individual to another. You do not need to get permission from an authority such as the state government to transfer ownership.
Leasehold or leasehold property refers to you leasing or renting the property from the government. Usually the lease term is 99 years. If the lease term of the property is reduced to like only 10 years left, then you can make a lease extension by paying the lease premium.
The lease will be renewed to maximize it to 99 years again. If you fail to renew it, it is impossible for your property to be taken back by the government. As for the transfer period, it takes quite a long time, less than 18 months or 18 months maximum. It all depends on the situation.
The land is reserved only for the Malays or called Bumi Lot. It does not matter if the property is freehold or leasehold , this property designated for sale in the indigenous Malays.
After approval is given to the developer to develop a piece of land, the land office will grant the master title or Master Title to the developer for the entire housing project.
Once the houses are handed over to the buyer, the developer will apply to the land office to transfer ownership of the property from Master Title to individual ownership. Most individually owned properties consist of landed houses such as Semi D houses and terraces. As for strata ownership, most of them consist of high rise houses such as condominiums and apartments.
If you buy a Master Title property , it will take a long time to be transferred by the developer due to the many procedures that need to be followed. It will be a problem for you during the sale of the house. But, if you buy an individually owned property, it is easier to sell.
That is one of the ownership or holding of real estate in Malaysia. Hopefully, with this brief information, it can guide you in choosing a suitable property and make things easier.
]]>It essentially catered to new homebuyers looking to buy a beautiful home for their family.
After Covid-19 made its mark on the country’s economy, it was reintroduced under Penjana as an initiative to revitalise the property market. It is set to end on May 31, 2021.
The main attraction of HOC is that it provides stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million.
The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement effective for Sales and Purchase Agreements (SPA) signed between June 1, 2020, to May 31, 2021.
Best of all, the HOC also offers a minimum 10% discount on houses bought under the scheme!
For those looking to purchase a second home or build their property portfolio, there is no better time than the present.
The property market is currently a buyer’s market, which means there is more supply than demand, thus raising your chances to snag a property below market price.
Even potential investors who want to capitalise on the current situation but do not have enough cash can jump on the wagon.
How? The answer is refinancing.
Refinancing is the restructuring of your loan in a way that gives you different terms or rates and usually gives you better cash flow, especially through cash-out refinancing.
Before deciding on whether to opt for refinancing or not, you must first weigh out various options — how much can you save by refinancing your home loan? Would it put you in a better position debt-wise? How will it serve you in the long run? Let’s find out!
Advantages of refinancing
Lower interest rate
Currently, the Overnight Policy Rate (OPR) in Malaysia is at its all-time low at 1.75%. If you refinance your home loan now, you can save on your monthly interest payment significantly. Combined with the HOC, you can apply to refinance for a new home loan at this all-time low interest to reduce your accumulated debt for both houses.
Debt consolidation
Usually, paying for multiple loans is hard. You are more likely to miss a payment or become overwhelmed by the mounting loan installments. To ease your burden, you can refinance to put all your home loans under one loan.
Paying your loans will be easier and you can even bargain a better interest rate in the current situation. Besides, if you invest in a new home under the HOC scheme, you can put that home loan together with your existing ones to put all your obligations in one neat package.
Healthier credit score
Refinancing allows you to save money thus releasing more free cash for your use. You have less monthly interest to pay and less debt obligation in your record. It puts you in a great position to meet your obligations regularly and your debt-to-income ratio also looks considerably better. Thus, it helps you to obtain a higher credit score for further loans in the future.
Large loans
Often, multiple small loans can add to your interest expense. Refinancing enables you to take a larger loan to cover all your existing loans in one single new mortgage. It is easier to maintain and saves you time and hassle in catering to different loans at different times of the month.
Longer repayment period
When you took your first loan, your financial capacity might not have been as good as it is now. Over time, your income has grown, your credit score went up and you are financially healthy.
If this is you, then refinancing your home loan today can give you a better negotiating position to get a longer repayment time. You will have more time to pay your loan which will free up your monthly cash to invest in other important things.
Disadvantages of refinancing
Risk of foreclosure
If you cannot pay your mortgage payment in time, you stand the risk of a foreclosure on your homes. However, if you are able to make your payments on time, then you need not worry about it.
If your sole purpose of refinancing is getting a better interest rate and better terms and conditions, then you will be freeing up cash. So, you will have enough money in hand to make your payments in a timely manner.
Closing cost
When you refinance your home, the closing cost can quickly add up. You will have to pay for a loan application, home appraisal, disbursement and stamp duty. But as long as you keep an eye on the cost and look for a bank that has the lowest closing cost, all will be well.
Interest cost
Refinancing often involves adding your other existing loans to put all debt obligations under one new mortgage. Hence, your new interest rate will be higher than the existing one as you are paying for a bigger loan amount. To avoid overpaying your interest, calculate your existing interest on loans to make sure your new interest is lower.
As with all financial decisions, choosing to refinance is not a decision you can make lightly. You’ll need to weigh all the pros and cons, as well as calculate your monthly commitments carefully before deciding to sign the papers.
Luckily, the approval process for refinancing is not as long as personal loans, so if you apply now, it may even get approved just in time for Raya!
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