KUALA LUMPUR: With the upcoming three-year tax relief for first-time owners set to increase demand for homes, these buyers are calling for the current timeframe “from the signed date of sale and purchase agreement (SPA)” to be replaced by “from taking vacant possession”.
The National House Buyers Association (HBA) secretary-general Datuk Chang Kim Loong said that currently, buyers of residential units from developers usually only start servicing their loan interest when they take vacant possession of the property.
Under Budget 2025 announced on Oct 18, first-time buyers will get a tax relief of up to RM7,000 for purchasing homes priced up to RM500,000, or a RM5,000 tax relief for first-time buyers of units costing between RM500,000 and RM750,000.
This initiative can be claimed for three consecutive assessment years between Jan 1, 2025, and Dec 31, 2027, commencing from the date the SPA is signed.
“While HBA supports the tax relief, we feel that it should also be given to all existing homeowners with outstanding housing loans to benefit more rakyat.
“As such, the three-year tax relief should start from the date of handover (of properties) instead of the date of SPA,” said Chang.He also urged that the target group be expanded to those who buy from the secondary market or pre-owned residential properties.
“The relief on interests should be similarly applied to all first-time buyers whether they purchase from housing developers or the secondary market,” he said.
Chang added that more importantly, the government should come up with a policy to exempt all victims of abandoned projects from paying interests until the handover of their completed units.
Real Estate and Housing Developers’ Association (Rehda) president Datuk Ho Hon Sang said association members are expecting the tax relief offered in Budget 2025 to spur demand for residential properties.
“The positive sentiment it creates will play a role in enhancing the property industry and the economy as a whole,” he said.
Meanwhile, Housing and Local Government Minister Nga Kor Ming said the announcement in Budget 2025 is aimed at ensuring that all Malaysians are able to own a home, regardless of their income.
Malaysia’s home ownership has achieved 76.49%, which is well above the global average, he said.
Under Budget 2015, to further support first-time homebuyers, the Housing Credit Guarantee Scheme (SJKP) has approved RM12.8bil in government guarantees for over 57,000 individuals purchasing their first homes.
To help young Malaysians own a home, a step-up financing scheme under SJKP provides a government guarantee of up to RM5bil, offering lower loan repayments for the first five years.
“The RM12.8bil will help to solve the bankability issue for buyers who can now get loans for their first homes,” said Nga.
(SJKP is a government scheme to assist individuals without steady jobs or incomes or proper payslips to get loans and financial assistance from banks to buy homes.)
Nga also hailed the further savings for first-time homebuyers when they are exempted from paying stamp duty.
Under the Home Ownership Campaign 2.0 that continues until the end of 2025, these buyers will enjoy a full stamp-duty exemption for properties priced RM500,000 and below.
“In addition, those who buy their first homes priced between RM500,000 and RM1mil will get a 75% exemption from stamp duty,” he added.
