Looking out: Muhammad Zainulariff (right) checking out a model of a newly- launched housing area in Penang. — ZHAFARAN NASIB/The Star
GEORGE TOWN: Despite a 100% exemption on the stamp duty for houses below RM500,000, first-time buyers in Penang feel that home prices are still too high.
Civil servant Muhammad Zainulariff Ahmad Sarbri, 28, said although the exemption was welcome news for him, he was still unable to afford a decent house in Penang, especially on the island.
“Our options are quite limited if we’re looking for cheaper houses or apartments in Penang. Even if there are, they would have been snapped up quickly,” he said.
Muhammad Zainulariff, who is getting married later this month, said with an average salary of between RM2,000 and RM3,000 for fresh graduates, not many of them could afford to buy a house, especially in Penang, Kuala Lumpur, Selangor and Johor.
“I have a few commitments, therefore, I can’t afford to pay a monthly house instalment of almost RM2,000,” he added.
“Another option for me is to buy a house in Kedah, which will be much cheaper, but then again it is not practical as my fiancee and I are working in Penang.”
Affordable houses in Penang are priced between RM250,000 and RM400,000 that come with a minimum size and set of amenities.
According to a calculator on a popular property website, a home buyer would have to fork out RM1,054 a month in instalments for a RM250,000 house.
For a RM400,000 house, the monthly instalment is RM1,686.
Both calculations were based on a 3% interest rate for 30 years.
For creative executive Jamal Kamaruddin, 33, his plans to buy a house was put on hold due to the Covid-19 pandemic.
“The pandemic has affected everyone, including me. Now, with a take home salary of about RM3,000, I can only afford to rent. I think it will take a while before I can actually have my own house,” the father of one said.
Jamal said as the sole breadwinner, his salary was only enough to cover his family’s rent, utilities and other commitments.
“My company has not increased my salary for the past 10 years due to the slowdown in economy,” he said.
Welcoming the stamp duty exemption, Jamal also urged the government to enhance the “Skim Rumah Mesra Rakyat” for first-time house owners.
Recently, the government announced a 100% stamp duty exemption on instruments of transfer and loan agreements for properties priced RM500,000 and below, and a 75% exemption for properties priced between RM500,000 and RM1mil from June 1, 2022 until Dec 31, 2023.
In addition, all property transfers between spouses, parents and children, and grandparents and grandchildren, will receive full stamp duty exemptions for the first RM1mil of its value.
