Dato’ Raja Kamarul Bahrin Shah – Foreign ownership threshold Reduced RM1M -> RM600k & BSN Youth Housing Scheme

At the Housing Conference 2019, YBM Senator Dato’ Raja Kamarul Bahrin Shah, Deputy Minister, Ministry of Housing & Local Government mentioned on Budget 2020, the government will help improve on affordability and the property sector unsold units situation.

He mentioned the following:

“Under passing budget 2020, extended its aid, in fostering home ownership by providing guarantees, to financing first home purchase of up to RM500,000”

“To reduce the high number of unsold units of condominium and apartment, the government will lower the foreign buying threshold from RM1 million to RM600k in 2020″

“Youth housing scheme by Bank Simpanan National. 10% loan guarantee through Cagmas, to enabled borrowers to obtain full financing and monthly instalment assistance of upto RM200 per month for the first 2 years. This gateway will be further extended until 31 st December 2021 to assist Youth in purchasing their first home, but will however be limited to 10 000 units of houses.

On Rent-to-Own scheme:

“To further implement this step of action, the government will be working with financial institutions to introduce a rent-to-own (RTO) scheme. A scheme aimed at assisting those who are unable to pay 10% deposit, and to secure the access of home purchase financing. Under this programme, applicants will be able to rent a house for a period of up to 5 years and after a year he or she will be given the option to purchase the relevant residential house at a fixed price when the rental agreement is signed. The government will also provide the full exemption of stamp duty on transfer instrument between developers and financial institutions, as well as between financial institutions and the prospective buyers.”

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