Tips For Investing In Properties Amidst The RMCO
Is it really a good time to invest in property during these uncertain times? Most Malaysians continue to be wary and adopt a ‘wait-and-see’ attitude throughout the RMCO period. The Malaysian property landscape remains robust and somewhat steadfast despite the ongoing global pandemic. Whether it is the primary or secondary market, there are abundant opportunities awaiting prospective homebuyers and potential investors seeking their dream properties.
HOC 2020 To Spur Market
Recently, Bank Negara has announced a reduction of its OPR rate to 1.75% to stimulate the national economy. RPGT has been exempted from 1 June 2020 to 31 December 2021 to ease the burden on property transactions specifically for sellers disposing off their properties. Under the HOC 2020, developers also provide various exemptions, incentives, goodies for buyers and investors to own a property primarily for residential homes priced between RM300k and RM2.5mil, including a 10% discount for a property purchased.
A Blessing For Estate Agents
There is also good news for agents and negotiators. For the first RM1 million property transacted, full stamp duty and RPGT (limited to 3 homes per individual) are waived for all SPAs signed between 1 June 2020 and 31 May 2021. In addition, first-time homebuyers also enjoy stamp-duty exemption on property purchases valued below RM300k. Similar waivers also apply in the case of third home loan applications for residential properties under construction valued above RM600k.
Be An Informed Investor
Property has long been recognized as an ideal hedge against inflation since it continues to appreciate over time unlike money. A lukewarm property market naturally favours the buyer due to lower property prices. As property is truly dynamic, there is no such thing as the best time to invest in properties. Nonetheless, it is best to keep abreast of current trends in order to make informed decisions on any future investments. When it comes to buying a dream home, it is better to keep tabs on your budget than spend a fortune on a luxury property that does not measure up to your income or salary. But for those with cash to splurge, why not invest in your dream home today?