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Home Ownership Campaign 2019 What You Should Know?

The Home Ownership Campaign (HOC) 2019 is an initiative by the Government to address the property overhang issue in the country, and to further stimulate the housing sector. The Campaign is open to ALL Malaysian individuals and will run from 01 January 2019 to 30 June 2019. During this time, the Government will offer stamp duty exemptions on the Instrument of Transfer and Instrument of Loan Agreement.

Stamp Duty Exemption

Instrument of Transfer

House Price Stamp Duty

                  1st January 2019 to 30th June 2019

First RM100,000 Exempted
RM100,001 to RM500,000 Exempted
RM500,001 to RM1,000,000 Exempted
RM1,000,001 to RM2,500,000 3%

 

Instrument of Loan Agreement

House Price Stamp Duty

                  1st January 2019 to 30th June 2019

Up to RM2,500,000 Exempted

 

Below are a few common question one might have:

 

1. Who is eligible for the Home Ownership Campaign Stamp Duty Exemption?

All Malaysian Citizen buyers are eligible for the stamp duty exemption.

 

2. What are the eligibility criteria?

To meet the criteria for the eligibility, the purchaser must have their SPA signed and stamped on or after 1 January 2019 but no later than 30th June 2019. However, the exemptions are only applicable for residential properties (including serviced apartments) that are completed or under construction, and governed by the Housing Development Act with valid advertising and sales permit (AP) and developer’s license (DL) and/or Certificate of Completion and Compliance (CCC).

Only residential properties in the primary market are eligible for the stamp duties exemptions, thus the sale must be from a developer to a purchaser. A minimum 10% discount MUST be given by the developer, provided that the residential units are not subject to Government price control.

The discount is given based on approved APDL pricing and must be reflected in the SPA.Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.

 

3. Can I buy a SoHo/SoFo/SoVo?

In this case, a small office/home office (SoHo), small office/versatile office (SoVo), and small office/flexible office (SoFo) units do not qualify for an exemption. To qualify for the exemption, only Residential Properties are eligible.

 

4. Can I purchase the property under my company?

No, purchases are for Malaysian individuals only.

 

5. I just purchased a property from a developer but I did not get a 10% discount.

Not all developers are required to register under HOC. As such, we do advise that purchasers speak to the developers for further clarification before proceeding with your purchase.

The minimum 10% discount is only given to the purchase of properties that are registered with REHDA Malaysia (for Peninsular Malaysia) and SHEDA or SHEREDA (for Sabah and Sarawak).

 

6. Can I purchase more than one residential unit and get stamp duties exemptions on all of them?

No, the stamp duties exemptions is limited to one (1) unit for one (1) purchaser only.

 

7. Am I entitled for the HOC waiver if I purchase a house from my friend (secondary market)?

No, the stamp duty waiver is only applicable for residential properties purchased from a developer (primary market) that is registered with REHDA, SHAREDA or SHEDA.

 

8. Are there any fees I need to pay before I purchase a property from HOC?

No, purchasers are not imposed with any fee either by the developer, REHDA or the Government. Only developers are imposed with the registration and certification fees.

 

9. What is the amount for the exemption on the Instrument of Loan Agreement? Is it based on house price or loan amount?

The amount of exemption on Instrument of Loan Agreement is 0.5% of the loan amount.

 

10. I have previously signed an SPA in January and have paid the stamp duties on the Instrument of Transfer and Instrument on Loan Agreement. Can I get a refund?

Yes, provided that the 10% discount is reflected in the SPA and the developer registers the project/unit with REHDA for HOC.

 

For more details, you can visit the official HOC 2019 website here.

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