First-Time Home-buyers Entitlement on 50% Stamp Duty Exemption

Scenario

Jack-jack who is 24 years old intends to buy his first home for own stay. In view that he is not entitled for the 50% stamp duty exemption for the condominium that he is favors as it purchase price is RM450,000, Bob, Jack-jack’s father has advised him to enter into the sale and purchase agreement (SPA) joint namely in September 2014. However, pursuant to the reading of Budget 2015 by Prime Minister, Bob has regretted his advice to enter into the SPA joint namely as Jack-jack is now entitled to the 50% stamp duty exemption on the instrument of transfer with the new RM500,000 purchase limit. Is that true?

Mythbusted.

Notwithstanding that the Budget 2015 has made announcement on the RM100,000 increase in purchase limit for first time homebuyers, the implementation of such measure does not takes place immediately. The reading of Budget in Dewan Rakyat is similar to the Bills having their first read in Parliament. It is subject to debates and second reading by the Members of Parliament. Upon passing by the Dewan Rakyat, the relevant ministry department will have to come up with the effective date for such implementation. For example, the foreigner purchase threshold of RM1million in Budget 2014 took 4 months before Economic Planning Unit made the necessary amendments in the policy before it comes into force on 1 March 2014. Thus, Jack-jack is not entitled for the 50% stamp duty exemption unless and until further announcement by the relevant ministry is made.

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