Home ownership in Malaysia is a tricky situation – there’s a demand and then there’s also a supply, but financial capability seems to be an issue here. Based on Bank Negara Malaysia (BNM) insights, these supply-demand imbalances in the property market have increased since 2015. And the reason for this is not because of the strict lending rules on housing loans, but it’s because (drum roll, please)… houses aren’t affordable anymore.
With this issue in mind, the Minister of Finance, Lim Guan Eng has initiated a national campaign called Home Ownership Campaign (HOC) to help clear the backlog in the housing market, as well as to encourage property ownership.
Yup, this campaign can increase your chance to own a house. So be on the lookout for properties within this campaign period as it doesn’t come around often. Although the expo is over, you can still take advantage of this campaign. But before that, here are a few things you should know about HOC.
So, who’s eligible for HOC and what are the promotions?
From 1st January 2019 to 31st December 2019, all Malaysian citizen who’s looking to buy a house (that’s priced above RM100,000 and not more than RM2.5 million) will enjoy a minimum of 10% discount (there’s a possibility for it to be more) from the property developer.
On top of that, you’ll also get a 100% stamp duty exemption on the Instrument of Transfer and Instrument of Loan Agreement – well, it depends on the house price range.
Instrument of Transfer
| HOUSE PRICE | STAMP DUTY |
|---|---|
| First RM100,000 | Exempted |
| RM100,001 to RM500,000 | Exempted |
| RM500,001 to RM1,000,000 | Exempted |
| RM1,000,001 to RM2,500,000 | 3% (instead of 4% which will take effect on July 2019) |
Instrument of Loan Agreement
| HOUSE PRICE | STAMP DUTY |
|---|---|
| Up to RM2,500,000 | Exempted |
*The amount of exemption on Instrument of Loan Agreement is 0.5% of the loan amount.
And of course, to meet the eligibility criteria, the purchaser must have their SPA signed and stamped on during the mentioned timeline.
Here’s how HOC works. If you buy a house worth RM550,000…
Without HOC, you’ll have to pay (based on Loanstreet’s Home Loan & Stamp Duty Calculator):
But with HOC, you’ll pay way lesser:
Having said that…
Take note that the exemptions are only applicable for residential properties in the primary market like landed houses, condominiums and serviced apartments that are completed or under construction, and governed by the Housing Development Act with a valid advertising and sales permit (AP) and a developer’s license (DL) and/or a Certificate of Completion and Compliance (CCC).
If you’re thinking about purchasing a small office/home office (SoHo), small office/versatile office (SoVo), small office/flexible office (SoFo) or a subsale unit – SORRY, they’re not qualified.
Besides that, the eligible properties in Peninsular Malaysia MUST be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia. For Sabah and Sarawak, on the other hand, the eligible properties must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA), respectively.
So, don’t forget to check if the property you wish to buy is eligible for HOC to avoid unnecessary disappointments.
I have more questions in mind…
1. Do I need to pay a fee before purchasing a property via HOC?
If anyone ever asks you to pay a fee to be eligible for HOC promotions, you can ask the person to go fly a kite. Do know that only developers are supposed to pay the registration and certification fees.
2. I bought a property recently and didn’t get the 10% discount or stamp duty exemption. Why?
If you previously signed an SPA within the said timeline and have paid the stamp duties on the Instrument of Transfer and Instrument on Loan Agreement without discounts and stamp duty exemption, you can ask for a refund. First, check if the developer of the unit has registered with REDHA, SHAREDA or SHEDA for HOC. Then, make sure that the 10% discount is reflected in the SPA.
3. If I buy more than one house, can I get stamp duty exemptions for all of them?
The answer is NO. Unfortunately, the stamp duty exemption is limited to 1 unit for one 1 purchaser only.
New Projects currently entitle for HOC campaign
- Razak City Sungai Besi (from RM3xxk)
- Aviary Puchong Horizon (From RM375k)
- Alanis Kota Warisan (From RM300k for 3 bedrooms)
- M Vertica Maluri Cheras (from RM4xxk)
- Mulia Residence Cyberjaya (Landed 3 Storey from RM8xxk)
- Sunway Velocity Two
- Clio 2 IOI Resort City (3 Beds from RM4xxk)
- Zentro 16 Sierra (From RM3xxk)
- Trion Chan Sow Lin
- Maple Residence Cyberjaya
- Ayden Kota Warisan
If you need personal consultation for HOC or HOC projects, do can consult :-
Call / Text / Whatsapp Sam 012-6341950