The re-introduced Home Ownership Campaign (HOC) 2020, which exercises exemptions that lower the entry costs of property purchases is a scheme that might land you that much-coveted dream home of yours!
Many Malaysians have a shared dream to own their own property, whether for investment purposes or for their own stay. However, due to the hefty costs that come with purchasing a home, many avoid pursuing the idea.
We know housing affordability has always been a tricky subject but there are certain home ownerships schemes that make owning a property more accessible to keen buyers.
Among these schemes is the re-introduced Home Ownership Campaign (HOC) 2020, which exercises exemptions that lower the entry costs of property purchases – a scheme that might land you that much-coveted dream home of yours, or even a second or third property.
The government wants to overcome the property glut and clear the surplus of unsold residential units, which is why HOC was reintroduced as part of the current Short-term Economic Recovery Plan (Penjana). The campaign, which runs from 1 June 2020 to 31 May 2021, will exercise stamp duty exemptions for properties priced above RM300,001 and up to RM2.5mil. This will be applicable to residential properties within the primary market, which are units purchased from developers registered with Housing Developers' Association (REHDA) Malaysia, Sabah Housing
and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers' Association (SHEDA).
The current HOC 2020 includes a partial stamp duty exemption on the instruments of transfer and Ioan agreements, while full exemption is granted for those with a Sales and Purchase Agreement signed, as well as stamped at any Inland Revenue Board between 1 June 2020 and 31 May 2021. Additionally, developers are required to give a minimum discount of 10% on the purchase price, while the 70% margin of financing allocated to a homeowner's third property has been lifted. Hence, you could purchase a home at 90% loan financing (subject to the bank's risk assessment).
It is open to all Malaysian individuals – Malaysian citizens can either be the main purchaser of a residential property or the co-purchaser.
M Group's Eazy to Own, which is a campaign in collaboration with Maybank's rent-to-own scheme, HouzKEY, offers low entry payments where homebuyers can choose to stay first and own later for lowered monthly payments, or own now with a mere booking fee or RM500!