How can Budget 2021 boost home ownership for youth and first-time buyers?

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Budget 2021 Proposals to Boost Home Ownership for Youth and First-Time Buyers

Budget 2021 should prioritise initiatives aimed at fostering job creation and income growth, with a particular emphasis on supporting young Malaysians and first-time homebuyers. While interest in property ownership has seen an increase, the economic fallout from the Covid-19 pandemic, including job losses and reduced incomes, has presented significant barriers for potential buyers. Addressing these economic challenges and implementing targeted property market incentives are crucial steps to facilitate homeownership.
Expanding Home Ownership Campaign Incentives

A key proposal from the property industry is the extension of existing Home Ownership Campaign (HOC) incentives to the secondary property market. This would include extending exemptions on stamp duty and instrument of transfer fees, which are currently a significant draw for new property purchases. Industry players have also called for an extension of the HOC incentives until May 31, 2021, to provide a longer window for buyers to take advantage of these benefits.
Fostering Economic Drivers for Buyers

To directly support potential buyers, Budget 2021 needs to focus on economic strategies that stimulate job creation and enhance income growth. According to PropertyGuru Malaysia's Consumer Sentiment Study for the second half of 2020, a substantial number of house seekers, particularly those aged 22 to 29, and renters expressed their likelihood of purchasing property post-movement control order. This demographic group, along with renters, indicated that the pandemic would not necessarily delay their property acquisition plans, underscoring the importance of economic stability for their purchasing power.
Reviewing Loan Eligibility and Tenures

Property sector stakeholders have also suggested a review of financial institution policies related to home loans. This includes considering the extension of maximum loan tenures and a reassessment of the eligibility criteria for home loan applicants. Such adjustments could potentially make it easier for younger and first-time buyers to qualify for mortgages, thereby unlocking their ability to enter the property market.
Encouraging Digitalisation and Proptech Adoption

The budget should also continue to support digitalisation within the property sector. Incentives such as grant funds for pilot projects focused on digital applications, especially for property technology (proptech) players, can drive innovation. This focus on digital solutions can enhance awareness of available property initiatives and opportunities, streamlining the home-seeking process and encouraging greater uptake of new technologies within the industry.

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How can Budget 2021 boost home ownership for youth and first-time buyers?

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