Threshold for foreigners to purchase urban high-rise properties

Budget 2020: RM600k threshold for foreigners to purchase urban high-rise properties

The threshold for foreigners to purchase urban high-rise properties has been reduced from RM1mil to RM600,000.

During the speech of Budget 2020, Finance Minister Lim Guan Eng mentioned to reduce supply overhang of condominium and apartments amounting to RM8.3bil in the second quarter of 2019. He also said that this is the reasons to assists youths in purchasing their first home. Besides that, the Youth Housing Scheme administered by Bank Simpanan National will be extended from Jan 1, 2020 to Dec 31, 2021.  

Lim said that a Rent To Own (RTO) financing scheme has been set up for those unable to afford the initial 10% deposit and access financing in buying their first home. The RTO scheme is for purchase of first home above RM500,000 property. The applicant scheme will rent the property for up to five 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 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 in this scheme,” he said.


Source: Thestar