To buy or not to buy? That is a tricky question to answer.
With more than 1 million jobs lost and average household income declined by 12% in 2021, buying something expensive like a house seems illogical. In every crisis, there are opportunities. In this article, you will learn about the reasons to buy a property during a pandemic.
THREE main reasons why an investor or buyer should buy a house during a pandemic
1. Many government incentives
a) Home Ownership Campaign (HOC)
The program, which began in 2019, was first prolonged in June 2020 as part of the PENJANA effort, and was set to finish on May 31, 2021. However, as part of the Pemerkasa Plus declaration, it was then extended till the end of the year. Purchasers are entitled to at least 10% reduction on the purchase prices of chosen projects specified under the program under the HOC.
b) Full stamp duty exemptions
Stamp duty is excluded for those buying their first home (up to RM500,000) and is valid till December 31, 2025. As a result, unlike the HOC, which only caters to new projects, subsale properties are also included. This is good for property investment.
c) Real Property Gains Tax (RPGT) exemption
The extension of the RPGT deferral for Malaysian landlords who sell their property until December 31, 2021, will encourage sellers to sell their houses at competitive prices. For those who are interested in property investment in Malaysia, this is a great opportunity.
2. Low interest rates
By decreasing the overnight policy rate to 1.75%, this effectively reduces home interest rates to 3%. This move by Bank Negara allows buyers to not only secure a property at an affordable rate, but also to get a lower interest rate and monthly repayment. This is a buyers’ market and there will be ample property investment opportunities.
On average, the house loan interest rate was at 3.8% in the past, based on loans offered by 23 banks. With lower interest rates, some banks are even providing home loans with interest rates as low as 2.9%. In simple terms, a lower OPR causes financial institutions to reduce their base lending and financing rates. Consumers can now enjoy lower monthly payments.
3. Attractive goodies from property developers
To attract buyers, developers are offering rebates, discounts, free legal fees, and other freebies. Coupled with the fact that some developers are lowering their purchase prices to reduce inventory, now is a great time for YOU to finally buy your dream home. Is it a good time to buy a house during this pandemic? A big yes!
Is it a good idea to buy a house during the pandemic?
By now, you should have a clear answer. A house is a basic need. Buying property for investment is also a wonderful idea. With the ongoing initiative by the government and incentives given by property developers to keep the property market alive, potential home seekers like you are greatly encouraged to buy properties during this pandemic. Choose your future home from our list here: