The incentives offered by the government at the Home Ownership Campaign (HOC) should also be extended to first-time homebuyers planning to purchase from the secondary market, said the Malaysian Institute of Estate Agents (MIEA).
“MIEA is very appreciative of the fact that the Finance Ministry has introduced new programmes to stimulate the primary market by focusing on first-time home buyers, however it is critical that we should not close the door to first-time property buyers by limiting incentives to only properties offered by developers.”
National Property Information Centre revealed that 80 percent of all residential property transactions in Malaysia came from the secondary market.
This implies that the secondary market is the “bedrock” of the property sector that sustains the real estate market as well as provides the thrust for its sustained growth, noted MIEA.
With this, the organisation urged the government to offer the stamp duty exemption on instrument of transfer for properties priced up to RM1 million to first-time buyers of secondary properties, reported The Sun Daily.
The stamp duty exemption on instrument of transfer for loans up to RM2.5 million should also be made available to this group of buyers.
“There are significantly more varieties of homes at affordable prices for first-time home buyers within the secondary property market. Based on this premise, we should allow for the exemption of stamp duties to cover the purchase of homes within the secondary market by first-time buyers.”
MIEA also called for the setting up of a “Rent & Buy Programme” for this group of buyers, via a special vehicle or banks to help them in areas such as funds for down payment and loan eligibility.
“We also request Bank Negara Malaysia to study and implement a fair and equitable loan approval and streamlined process for first time buyers and/or set up a special revolving fund to fund these buyers,” it said.
“This will allow for a shift in the dynamics of the property market, not only allowing for the disposal of ‘overhang’ properties but also unsold completed projects that are vacant.”