The stamp duty for property transactions above RM1 million was not welcomed by the market. Of course, the target was not the B40 or the M40 households but this will subdue the number of potential transactions from the more experienced investors and when the numbers suddenly drop, the first-time home buyers would definitely lose confidence and may delay their purchases further. It’s their first time, they would not be able to act logically, not yet. The stamp duty was supposed to start from 1st January 2019. I think many must have made known their views to our Finance Minister Lim Guan Eng. This was reported in Edgeprop.my of his latest views.
The increase of one per cent in stamp duty for over RM1 million properties are now effective July 1, 2019. In a statement today, the Finance Ministry said this is to encourage the sustainability of activities in the real estate sector. Finance Minister Lim Guan Eng said the Pakatan Harapan government was very concerned and fair in determining a sufficient time frame for the transfer process to be undertaken in the interim before the new stamp duty becomes effective. He added, “As announced in the 2019 Budget, the government had agreed to grant a 100 per cent stamp duty exemption to first time house buyers for properties priced between RM300,000 to RM1 million.” As for houses priced below RM300,000, the stamp duty will be exempted for sale and purchase executed between Jan 1, 2019 to Dec 31, 2020. he also said the exemption of the stamp duty is aimed at continuing to encourage first time house purchases by Malaysians, improving the purchase of unsold units from developers, as well as boosting the property market. Full report in Edgeprop.my here.
Whether this will boost the market or not will be known soon. When everyone sees everyone else is buying, the buying will continue. If everyone sees everyone waiting by the sidelines, then the waiting starts. I personally do not think many Malaysians are going to be out of job soon which meant that their ability to buy remains intact. My advice? Buy if we have enough downpayment and don’t if we need lots of help from everyone just to buy that unit which we will still have to sweat as soon as interest rates start creeping up. Happy believing.
written on 29 Dec 2018
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