The Home Ownership Campaign (HOC), which ran throughout 2019, was designed to encourage the increase in home ownership among Malaysians. And now, it’s back again till 2021, people!
1. What were the benefits of the Home Ownership Campaign 2019?
The Home Ownership Campaign aimed to encourage the purchase of certain properties with the support of key financial incentives. Those incentives are:
i) Full stamp duty exemption till RM1 million
Under the scheme, successful applicants enjoyed 100% stamp duty exemption on Instrument of Transfer for any residential home purchase up to the value of RM1 million.
ii) Partial stamp duty exemption till RM2.5 million
For properties worth more than RM1 million up to RM2.5 million, you paid 3% stamp duty on the Instrument of Transfer for the amount that’s more than RM1 million.
iii) Instruments on securing loans exemption
All properties within the scheme enjoyed a further stamp duty exemption on the Instrument of Securing Loan.
Property Price: Up to RM2,500,000
Stamp Duty : Exempted
iv) 10% house discount
As well as the stamp duty exemption, you enjoyed a minimum 10% reduction on the purchasing price of properties listed under the scheme.
2. What are the benefits of the Home Ownership Campaign 2020-2021?
The HOC this time around carries the same set of benefits as previously, notably:
- Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (subject to at least 10% discount provided by the developer).
- The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement effective for Sales and Purchase Agreements (SPA) signed between 1st June 2020 to 31st May 2021.
Let’s say you bought a property at RM400,000
Without HOC, you’d have paid:
With HOC, you’d only pay:
*As properties under HOC is entitled to a minimum 10% discount, thus the new property price under HOC is RM400,000 x 90% (10% off)
3. Who was eligible for the Home Ownership Campaign?
Unlike many of Malaysia’s restrictive affordable housing schemes which come with stringent rules in place, the Home Ownership Campaign had relatively relaxed criteria in a bid to encourage growth in property buying.
- Registered properties: Eligibility only applies to those registered properties listed by developers within the scheme.
- Residential purposes: Purchasers must be buying the property for the purpose of residing within it only.
- Malaysian citizens: Purchasers and co-purchasers must be Malaysian citizens.
- 1 June 2020 to 31 May 2021: To be eligible for the exemptions and discount, a Sales and Purchase Agreement (SPA) must be stamped between 1 June 2020 and 31 May 2021.
4. What else was there to know about HOC 2020?
So with all that in mind, what else did you need to know about the Home Ownership Campaign? Let’s go through some important questions:
i) Does it apply to secondary markets?
No, the HOC 2020 only applied to new properties registered under the campaign from specific developers.
ii) When does the campaign end?
The campaign will end on 31st May 2021. All qualifying SPA agreements must be signed between 1 June 2020 to 31 May 2021.
iii) Do I have to pay a fee to participate?
No, the campaign is free. Developers must pay a registration fee but that does not apply to home owners.
iv) Can I buy multiple properties under the campaign?
Yes, you can. There was no limit to the number of properties you can purchase, and get stamp duty exemptions on all of them, under the HOC 2020.
v) Do all properties receive a 10% discount?
A minimum 10% discount applied on all properties within the scheme, with the exception of those subject to government price controls.
vi) What was the exemption amount on the Instrument of Loan?
The exemption on an Instrument of Loan amount covers 0.5% of the loan agreement. That amount covers the standard stamping fee for such an instrument.
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