Very good article to describe on Buy or RENT?
Is it better to rent or buy a house in Malaysia?
Some excerpt:
What are the current housing market initiatives for homebuyers?
As mentioned above, aspiring home buyers could leverage on several government measures to secure their own property at a discounted price:
1. Housing Credit Guarantee Scheme (HCGC, or Skim Jaminan Kredit Perumahan)
HCGC was introduced to help those without proof of a fixed monthly income get housing financing. The applicant’s average monthly income must be at least RM1,000. Under Budget 2022, the government allocated a total of RM2 billion for this scheme which will be expanded to freelancers and gig workers. Currently, the scheme is only open to those with irregular income such as small business owners, farmers, taxi drivers, fishermen, and others.
2. Keluarga Malaysia Home Ownership Initiative (i-MILIKI)
In July 2022, the Malaysian government announced a 100% stamp duty exemption for first-time home buyers of properties priced RM500,000 and below for sales and purchase agreements between 1 June 2022 and December 2023. Properties between RM500,000 to RM1mil will get a stamp duty exemption incentive of 50%. It was also announced during the first tabling of Budget 2023 that the stamp duty exemption for houses worth between RM500,000 and RM1mil will be increased from 50% to 75% but this has yet to be gazetted by Parliament due to the change in government in Q4 2022.
3. Recent Real Property Gains Tax exemption could mean more subsale property opportunities
The exemption of RPGT after the fifth year would encourage the listing of more sub-sale homes in the market – property owners who were previously holding off selling their property will be more willing to settle for lower selling prices as they would enjoy significant savings from the RPGT exemption. If you have been eyeing a sub-sale home, now is the perfect time to revisit the plan as you will be able to negotiate a better deal with the owner!
4. Residensi Wilayah (RUMAWIP)
The RUMAWIP scheme is specially designed for first-time buyers who fall under the low-to-middle-income groups. This program offers a variety of properties in the Federal Territories of Kuala Lumpur, Putrajaya and Labuan at affordable prices.
5. Skim Rumah Pertamaku (SRP)
Skim Rumah Pertamaku or My First Home Scheme was introduced to help eligible first-time buyers secure loan financing of up to 110% of the price of a property if their monthly household income is less than RM5,000 and the property is priced below RM300,000.
What are your next steps?
Buying a home involves a lot of research and personal assessments from your end, but this step-by-step guide could help you navigate the process smoothly from the get-go. Also, make sure to utilise our home loan eligibility tool, LoanCare to find out if you will be able to secure a mortgage from up to 17 banks across Malaysia for the property you have been eyeing.
FULL ARTICLE: Is it better to rent or buy a house in Malaysia? - iproperty.com.my