MALAYSIA BUDGET 2018 – HOUSING SECTOR
The Government will continue to intensify efforts to increase home-ownership for the rakyat with an allocation of RM2.2 billion as follows:
17,300 units of People’s Housing Programme;
3,000 units of People’s Friendly Home under SPNB;
210,000 units of houses under PR1MA with prices RM250,000 and below. For this, RM1.5 billion is allocation for the period of two years;
25,000 units of 1Malaysia Civil Servants Housing Programme (PPA1M) will be completed in 2018 while another 128,000 units are at various stages of construction;
600 units of MyBeautiful New Homes (MyBNHomes) scheme for B40 households in Terengganu, Pahang, Melaka, Johor, Sabah and Sarawak as well as Orang Asli settlements;
2,000 units under MyDeposit programme to assist down payments as well as MyHomes programme to enable developers to provide more affordable homes;
A sum of RM200 million is allocated for maintenance and refurbishment of houses, including the 1Malaysia Maintenance Fund.
To encourage the construction of more affordable homes, the step-up financing scheme introduced by PR1MA will be extended to private housing developers subject to certain criteria.
With regard to abandoned housing projects, stamp duty exemption for loan agreements and letter of consent to transfer, are given to rescuing contractors and original owners of abandoned projects, effective 1 January 2018 to 31 December 2020.
To promote rental of residential homes, for the first time in 60 years, the Government proposes a 50% tax exemption on rental income received by resident individuals not exceeding RM2,000 per month for resident individuals.
This exemption is effective from the year of assessment of 2018 to 2020. The Government will also formulate the Residential Rental Act to protect the landlord and tenant.
Public Sector Home Financing Board (LPPSA)
From 1 January 2018, the Public Sector Home Financing Board (LPPSA) will implement measures to enable public servants to own their dream homes. Among the measures include:
Allow financing by LPPSA to construct property on waqf land;
Include legal fee-related to sale and purchase agreement as part of financing by LPPSA;
Allow LPPSA joint-loan for husband and wife or children with a condition that all applicants must be public servants; and
Allow joint-home financing between husband and wife or children, with a condition at least one of the applicants is a public servant. The non-public servant needs to secure loans from financial institutions or agencies that provide financing facilities which agrees to be the second mortgage holder.
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