KUALA LUMPUR, Oct 11 -- The government will extend the Youth Housing Scheme administered by Bank Simpanan Nasional starting Jan 1, 2020 until Dec 31, 2021 to assist youths to own their first homes.

Finance Minister Lim Guan Eng said the scheme also offers a 10 percent loan guarantee through Cagamas to enable borrowers of full financing and RM200 monthly instalment assistance for the first two years limited to 10,000 home units.

He said, in partnership with the private sector, the Government has launched the Home Ownership Campaign where developers providing at least a 10% discount for qualified properties will be matched with stamp duty exemptions,” he said when tabling Budget 2020 at the Dewan Rakyat here, today.

“As many as 21,000 property units valued at RM13.44 billion under the Home Ownership Campaign have been successfully sold, exceeding the RM3 billion initial sales target, therefore, the campaign deadline has been extended by 6 months from 30 June to 31 December 2019,” he said.

Lim said to address those who are unable to afford the initial 10 per cent deposit and access to financing in purchasing their homes, the government will collaborate with financial institution in introducing Rent To Own (RTO) financing scheme.

He said,  through this scheme for purchase of first home up to RM500,000 property price,  financing of up to RM10 billion will be provided by the financial institutions with the support from the Government via a 30 per cent or RM3 billion guarantee.

“Under this scheme, the applicant will rent the property for up to 5 years and after the first year, the tenant will have the option to purchase the house based on the price fixed at the time the tenancy agreement is signed.

The government will provide stamp duty exemptions on the instruments of transfer between the developer and financial institution, and between financial institutions and the buyer,” he said.

Lim said Bank Negara Malaysia launched a Fund for Affordable Home earlier in January 2019 to help home buyers from the lower-income group to purchase their first homes, for property priced up to RM150,000 at a concessionary interest rate up to 3.5 per cent.

He said the qualifying criteria was expanded on 1 September 2019 to include property priced up to RM300,000 for households with maximum income of RM4,360, being the threshold income for B40. 

“As of September 2019, 2,840 applications amounting to RM472.7 million have been received. The approval rate is 77.9%, with 982 applications amounting to RM156.2 million being approved,” he said.

He said, to reduce supply overhang of condominiums and apartments amounting to RM8.3 billion in the second quarter of 2019, the government will lower the threshold on high rise property prices in urban areas for foreign ownership from RM1 million to  RM600,000 in 2020. 

Meanwhile, Lim said the government will allocate RM100 million in 2020 for the repair and refurbishment of low and medium cost strata housing to ensure lifts, electrical wiring, sanitary pipes and roofing are safe and in good working order.

“The Government will allocate RM15 million to the Safe City Initiative (Bandar Selamat) to provide outdoor lighting, parking with security features for motorcycles, anti-climb fences, and safety advocacy programmes,” he said.

Meanwhile, In response to the public view regarding the Real Property Gain Tax (RPGT) imposed on disposal of properties after 5 years onwards, Lim said, the government will enhance RPGT treatment by revising the base year for asset acquisition at 1 January 2013 for asset acquired before 1 January 2013 as compared to the previous base year of 1 January 2000. 

-- BERNAMA