What is the impact of 2020 Malaysia Economic Recovery Plan on Property Sector?
Special announcement on economic recovery plan by PM on 5th June 2020, what is the impact on property sector?
First
*Home Ownership Campaign (HOC)*
Stamp duty exemption on MOT (Memorandum of Transfer) and Loan Documents for residential property worth RM300,0000 to RM2,500,000 ‼️
BUT
✅subject to at least 10% discount from developer
✅ Stamp duty exemption for MOT is limited to the first RM1m of the selling price
✅ full stamp duty exemption for LOAN documents
✅ Sales and Purchase Agreements signed between 1st June 2020 to 31st May 2021
Second
*RPGT exemption*
Real Property Gain Tax (RPGT) exemption for disposal of residential properties from 1st June 2020 to 31st December 2021.
But
✅ only 3 units of residential properties per individual
Third
*Lifted 70% margin of financing for 3rd house*
Current 70% margin of financing limit applicable for the 3rd housing loan onwards for residential properties valued at RM600,000 and above will be lifted during the HOC.
But
✅ Subject to Internal Risk Management practices of financial institutions.
