Malaysia

Boost for homeownership under Budget 2025

Nearly RM900 million allocated for housing aid for the low-income earners

Updated 1 year ago · Published on 18 Oct 2024 6:50PM

 Boost for homeownership under Budget 2025

SEVERAL measures to boost homeownership will be implemented under the 2025 National Budget.  

New tax reliefs and financial support would be introduced to make homeownership more accessible while the Federal Government will also look at ways to deal with the housing needs of the underserved communities.

Prime Minister Datuk Seri Anwar Ibrahim, during the budget tabling in Parliament, reiterated the government’s commitment to ensuring that affordable housing is available to all.

Nearly RM900 million was allocated for 48 Residensi Rakyat programs and 14 Rumah Mesra Rakyat projects where these projects are designed to assist the low-income earners in the country.

Some 17,500 new residents by the end of 2025 are expected to enjoy these facilities by the end of 2025, he said.

“We are committed to making homeownership more attainable for every Malaysian,” Anwar said.

“The government has approved RM12.8 billion in guarantees through the Syarikat Jaminan Kredit Perumahan (SJKP) to assist over 57,000 first-time homebuyers. Moving forward, an additional RM10 billion in guarantees will be provided to benefit 20,000 more first-time homebuyers.”

The budget also introduces tax relief for first-time homeowners.

Individuals purchasing homes priced up to RM500,000 can claim a tax relief of up to RM7,000 on interest payments, while those purchasing homes priced between RM500,000 and RM750,000 can claim a relief of up to RM5,000.

This tax relief can be claimed for three consecutive years for sale and purchase agreements completed between January 1, 2025, and December 31, 2027, said Anwar.

Anwar said the government would also increase assistance for new home construction.

Residents of People’s Housing Projects (PPRT), fishermen, and residents of Kampung Baru Cina will be eligible for a maximum subsidy of RM90,000, while the ceiling for home repair subsidies has been raised to RM20,000.

To further address housing needs, the government has set aside RM200 million for the maintenance of low- and medium-cost public strata housing, which includes upgrading ageing elevators in these properties, he said.

“We are taking a comprehensive approach to solving housing challenges, ensuring that both new homeowners and residents in existing public housing have the support they need,” Anwar said.

These measures, designed to improve access to homeownership and enhance living conditions, are part of the government’s broader strategy to uplift underserved communities and ensure equitable development across Malaysia. - October 18, 2024

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