As we all know, property prices can be quite overwhelming these days. With land shortages within the city center, land prices itself are already quite expensive to begin with and developers have no choice but to charge a premium for properties that are within the 5-10km radius of the city center.

With the hefty costs that come purchasing a home, these days, many Malaysians especially the younger generations avoid pursuing the idea of buying a property entirely as to the commitments it may bring along with it.

While housing affordability has always been quite a tricky subject, there are certain home ownership schemes that are currently available to make owning your first property more possible to those who are keen to own their first property.

Among these schemes, one that is reintroduced, is the Home Ownership Campaign (HOC) 2020. This program includes some exemptions that reduces the entry costs of owning a property. This scheme might assist you to land owning the dream property of yours as well as those seeking to upgrade and or buy properties as second and third property buyers.

What is HOC 2020 anyways?

The Home Ownership Campaign (HOC) was reintroduced by the Malaysian government as a part of the current Short-term Economic Recovery Plan (Penjana) as an effort to overcome the property glut as well as to clear the surplus of unsold residential units. The campaign runs from 1st June 2020 to 31st of May 2021 will exercise stamp duty exemptions for properties prices above Rm300,001 to Rm 2.5mil.

This campaign is applicable to properties purchased from developers who are registered with the Housing Developer’s Association (REHDA) Malaysia, Sabah Housing, Real Estate Developers Association (SHAREDA), Sarawak Housing as well as the Real Estate Developer’s Association (SHEDA). Some developers also include legal and other fees exemption to further support this campaign and to further aid their own sales.

What are its benefits?

The HOC 2020 campaign benefits include:

  • Partial stamp duty exemption on the instruments of transfer and loan agreements
  • Full exemption for those with a Sales and Purchase Agreement signed and stamped at any inland revenue board between 1st June 2020 until 31st May 2021
  • Developers to give a minimum discount of 10% on the purchase price
  • 70% margin of financing allocated to a homeowner’s third property are lifted

Hence, you could purchase a home at 90% loan financing even on your third property however, this is subject to the bank’s risk assessment.

Who is eligible?

The HOC 2020 campaign is open to all Malaysian individuals. Malaysian citizens can be the main purchaser or the co-purchaser of the residential property.

To buy or not to buy?

If you have been home hunting for these past few years, this is the right time to make a decision. With Duty stamp and SPA exemptions, you are able to have a large portion of your finance for yourself rather than to pay for these legal fees. Home affordability is no longer an excuse for these short period of time. Hence, its up to the buyers to decide which property is the most suitable for them in terms of location, type of property as well as budget.