According to studies, 2020 will be a positive year for the housing market. This is a good news for Penang residential properties alike.
Every Malaysian kid dream of owning their home once they grow up. Unfortunately, in the last couple of years, buying a Penang residential property was becoming a challenge, and new homebuyers
were not sure if they should buy their first property.
2020 is a brand new year, and there are good news for property companies in Penang and homebuyers as the government will be working with financial institutions to introduce a Rent-To-Own (RTO) scheme to help those who can’t afford a 10% deposit to secure a home financing.
How Does the Rent-To-Own (RTO) Scheme Work?
Financial institutions will provide RM10 billion financing with the government's assistance through a guarantee provision of 30% or RM3 billion. To help many Malaysians who are unable to pay 10% deposit to book a home, the government will be working with financial institutions to create a Rent-To-Own (RTO) scheme.
RTO scheme is open to Malaysian to purchase their first home worth up to RM500,000
Government will also fully subsidize stamp duty on transfer between developers, financial institutions and buyers.
Under this scheme, the candidate will rent a Penang residential property or a property in Malaysia for a period of up to five years. After a year, the candidate will then have the option to buy the residential property at a fixed price when the rental agreement is signed.
To help even more homebuyers, the government will grant the full exemption of stamp duty on transfer instruments between property developers and financial institutions, as well as between financial institutions and the potential buyers.
As you can see, the new year is looking good for those who plan to buy a Penang residential property as the government will lower the foreign buying threshold for condominiums and apartments in urban areas from RM1 million to RM600,000 in 2020.
Malaysia’s real estate market is experiencing a transition that will continue in 2020. The supply and demand of Penang property new projects are catching up, and housing inventory is stabilizing.
It is important to note that appreciation among houses for sale is still ongoing but at a reasonable speed, which is great as it rules out the risk of a housing bubble in 2020.
Frequently Asked Questions For First-time Homebuyers
Here are the most common concerns on how to buy your first residential property and what criteria to look at.
1. Is now the right time to buy Penang residential property?
One thing is for sure, property prices in Malaysia
are not going down. Malaysia property prices have experienced compound annual growth of 7.8%. So the best time to buy a Penang residential property is today.
Now if you’re looking at properties in Penang, it is the perfect time to check out some of the most sought after new housing developments in Penang, such as 79 Residence
and Artis 3
. Bear in mind that the longer you wait, the more you will have to pay.
2. Where should I buy the property?
Your best option is to find a residential property located in a city such as Penang for the quality and convenient lifestyle it offers.
Certainly, budget will be one of the main concerns. If you do your research, it’s not hard to find great properties launched by new developers in Penang Mainland at affordable prices.
3. Which type of property is a better investment?
Most experts agree that landed properties give a better return on investment, but you have to keep in mind that this will depend on what you are looking for.
Properties in Penang Mainland are more suitable as long-term investments as the capital return is higher. A good example of Penang property development is 79 Residence located in Bukit Mertajam with a price range starting at RM511,500. This development is great for rent or permanent tenancy.
The Bottom Line
In general, buying a Penang residential property for investment is a great idea in 2020 because you will be able to get a good deal or buy a property at fair market value without entering into a bidding war with homebuyers or other real estate investors. This means that first-time buyers will find amazing opportunities for owning a home in 2020.
Believe it or not, most property companies in Penang agree that the best time to buy a new residential property is at the beginning of the year, so if you are determined to own a home, start doing your research today!