Home hunting: Wayne Wong and Karmun Wong viewing property at a showroom in Petaling Jaya, Selangor. The couple are actively scouting for an affordable home. — AZHAR MAHFOF/The Star
PETALING JAYA: The resumption of the stamp duty exemption allocated by the government for first-time house buyers has seen some welcoming it as a boost towards property ownership.
They say the initiative also made the prospect of owning their first home much more affordable, given how the stamp duty savings could now be used towards furnishing the house and for renovation.
For others, however, the rising cost of living and slow salary increment continue to make it financially overwhelming to own a home with many still opting to rent instead.
Entrepreneur Karmun Wong, 33, who is keeping an eye on houses for sale, said the exemption would greatly help, given the rising cost of properties in recent years.
“It’s not like before when our parents bought at much more reasonable prices.
“The challenge now is to find an affordable property, preferably priced below RM1mil, with it also being in a strategic location.
“Since my husband and I both work in the Klang Valley, it greatly helps if we can get a home with a minimum 15-20 minute drive to our workplace while also being accessible by public transport,” she said.
Her husband Wayne Wong, 31, said the savings from the exempted stamp duty could be used for renovation and furniture.
“Any bit of assistance helps. Property on its own is already very expensive.
“Owning a property, however, is a worthwhile investment as it is not only a place we can call home but also an additional income stream if we decide to rent it out in later years,” he said.
Operations manager Raymond Tan, 32, however, said the stamp duty exemption did not encourage him to buy any property.
“It is only a small fraction of the total cost when purchasing a property.
“The biggest problem is that property prices are still very expensive and very financially demanding compared to what current incomes allow.
“At this juncture, it feels like rental is a much more affordable option,” he added.
Tan, who rents a terrace house in Damansara, said that when researching for a place to stay he found that renting made more financial sense based on his income.
“Rental houses where I currently live generally cost between RM2,000 and RM3,000 monthly, but with house ownership, the monthly cost goes up to between RM4,000 and RM6,000, which is double the rental cost,” he said, adding that he opted for his current location due to convenience and familiarity.
Similarly, software analyst K. Sarah, 35, said it was much more affordable to rent now, seeing how the monthly instalment for housing purchases seemed to double the amount she forked out on rent monthly.
“Buying a house also means paying for furniture, renovation and other necessities to make it a home.
“I’m currently renting a fully furnished unit and everything is provided readily, which is much more convenient for my partner and I,” she added.
Meanwhile, a training manager who wanted to be known only as Zaki said it would be good if the exemption applied towards properties with the rent-to-buy option.
“Property prices are really soaring now. The exemption, if applicable towards those with rent-to-buy properties, could make things more affordable and encourage first-time home buyers like myself to own our first home,” he said.
On June 9, the Finance Ministry said that first-time house buyers would continue to enjoy a 100% stamp duty exemption for purchases not exceeding RM500,000 via the Malaysian Home Ownership Initiative (i-Miliki) as provided under Budget 2023.
It said a 75% stamp duty exemption would also be given for first-time home ownership for houses priced at between RM500,000 and RM1mil under i-Miliki.
This exemption applies to sale and purchase agreements executed from June 1, 2022 until Dec 31, 2023, it said in a statement.
The exemption comes under the Home Ownership Programme (HOPE), where first-time buyers are given stamp duty exemption on transfer documents and loan agreements, with the move aimed at encouraging home ownership among the people, the statement added.
The ministry said the stamp duty on instruments of transfer of ownership of real estate by way of love and affection between parents and children and between grandparents and grandchildren are also fully exempted, limited to the first RM1mil of the property’s value.
