Home Ownership Campaign
The definition of home differs from a person to person. Some believe that home is where your heart feels at peace. However, some have a rather practical way of perceiving this concept. Understanding the logic behind a home can be tricky since humans mostly have an emotional attachment to the idea of a home. On the contrary, a number of people look at it just as a property or a piece of land. Their concern is mainly dependent on the value of their property and how strong is their return on the investment over a period of time.
In some situations, a place to seek refugee and gain shelter is also said to be home. A place where one feels ultimate comfort, peace, and love. The understanding of a home is also woven into one’s bonds and relationships. This is why many new couples consider buying a new house together as a wonderful milestone that they have been able to achieve together.
The significance a house has in one’s life is also due to the time they are able to spend in this home with the company of their loved ones. On the other hand, some even connect it with the idea of growing a family in the near future.
But unfortunately, many Malaysians are suffering from major issues such as unemployment. This has to lead to a number of them not being able to own a house or maintain stability in terms of owning a home and having shelter. Moving from one place to another and staying on temporary rental contracts with the family has its own difficulties and challenges.
Low wage is also another issue the people of Malaysia have to face. A Khazanah Research Institute Study published in April 2021 goes deeper into analyzing the low wage problem in the job market. The publications show how the particular issue has been a part of the economy even before the Covid-19 surge hit the country.
Jobseekers with strong academic backgrounds also go through this extensive struggle. Degree holders are either underemployed or not paid fairly. These realities have made many believe that buying a house might just be impossible.
What is the real meaning of home?
Since the beginning of time, humans have connected the existence of a home to shelter and safety. A home has always been recognized as a place where people find comfort and security from all the noise and dangers of the world. The human race has come very far indeed but the concept of a home has remained the same for many. Warmth and comfort is still a synonym for a home.
But in the truest and most raw form, a home might also refer to a person as well. For example, being able to share a home and the feeling of comfort with the one you love. Many also associate it with the place where their own memories reside. Numerous people spend different phases of life in a certain house. They begin to c0-relate their good times and the memories they have been able to make with a home they resided in for a certain period of time.
Whether the meaning of a home is emotional or practical, the need remains the same. People still wish and plan to own the house of their dreams. Different financial setbacks might have held many from owning one but most of them do feel the need of having a home they can their own.
We’ve all come across people who spent their whole lives saving and planning for their future homes. Most of these people have spent a big chunk of their life staying in a rented house which is why they begin to consider the ownership of a home as one of the greatest achievements in life. The safety of knowing that no unusual circumstances will be able to take your own away is a feeling many crave for.
What is the Home Ownership Campaign?
Despite having the wish to own a house due to either practical or emotional reasons, being able to own a safe shelter is a challenge. Harsh financial constraints and economic effects are mostly the reason why. Nonetheless, the Malaysian Government introduced Home Ownership Campaign i.e the HOC to help home seekers find the right home for themselves. This campaign was initially introduced and launched in 2019.
The HOC initiative is established in order to encourage more sales of land and properties in Malaysia. This is basically a drive that helped people looking to buy houses and the ones looking to sell them. Many developers are a part of this campaign as well. This scheme has been helping the listed developers meet the interested buyers.
Many advantages of this campaign are strongly related to financial incentives as well. In other words, this initiative has not only provided da property for the home seekers but also at a better price. A minimum of 10% of discount is applied to the properties listed in the scheme. Many other benefits are also a part of this scheme which will be discussed in more detail ahead.
Malaysians who are interested to buy a home depending on bank loans can also make the most out of this opportunity. In fact, major banks have introduced various loan packages in collaboration with this scheme. This has made buying a house even easier as many people might be interested in buying a property only based on a loan.
Under the HOC, the government does not only help the home seekers find an ideal home but also provides a stamp duty exemption in the favour of the buyers. For numerous people, duty exemption may be the most important reason behind this purchase. This might seem like a scheme that is only working in the favour of home seekers but in reality, it’s solving a major problem as well.
Malaysia has been struggling with an overhang of residential properties for sale. According to the National Property Information Centre (NAPIC), 31,661 units were empty and available for sale. This problem is now been taken care of by introducing the HOC initiative. Genuinely interested buyers will be able to buy their houses from legitimate developers and builders listed in this scheme.
What is the benefit of HOC?
One of the best benefits of buying a home and ensuring it’s under the HOC initiative is the 10% house discount. This has been by far one of the most exciting benefits of this campaign. But do not think this is the only one. This scheme comes with a number of other benefits as well.
The government also announced a full stamp duty exemption till RM 1 million. This benefit is a blessing for many home seekers. In addition to that, properties for more than 2.5 million will also be able to redeem a perk. Their houses will also be able to get a partial stamp duty exemption.
Analysing the decreased stamp duty further explains the difference thoroughly. Beginning from the first RM 100,000 until RM 1,000,000, the stamp duty is exempted completely. The 3% of the stamp duty will be charged starting from RM 1,000, 001 all the way until RM 2,500,000. These discounts are indeed staggering and impressive for Malaysian home seekers.
Furthermore, there is another benefit that is suitable for home seekers looking to buy a property based on a loan. Parties that seek a loan under this scheme will have up and above 2,500,000 exempted for the purchase of their home. These incentives are allowing many to finally make a decision and be able to secure a safe haven for themselves and their respective families.
The exemption percentage that has set an Instrument of Loan is able to cover 0.5% of the loan agreement made by the buyers. The stamping fee is also included and can be covered. This is another benefit that the HOC scheme has given the home seekers who are willing to purchase their dream home.
Another important and attractive giveaway also lies in the fact these services are absolutely free and no additional or hidden charges are involved. A fee is imposed on developers but home seekers walk away with a house of their own without having to pay any excessive charges.
Who is eligible for HOC program?
We all know what everyone might be wondering at this point, what makes one eligible for this scheme and what is the definition of eligibility in this scenario? Well, unlike other campaigns and initiatives, the requirements by the government are much lower here.
To be able to buy a house under HOC, the first requirement is only choosing a property that has been listed under this scheme. Which refers to the homes that are included by the developers. In addition to that, the property should be bought with the intentions of residence only. This means that the property can not be used for any other commercial purposes.
One major reason behind launching this initiative was to ensure that Malaysians are able to have a house of their own instead of looking for a home every now and then. So to keep things fair, this scheme only applies to people who would like to reside in this home.
Moving on, the third requirement is being a Malaysian. You can avail this opportunity if you are a Malaysian citizen. In order to become a part of this scheme, your property should be stamped by 31st December 2021 since HOC is meant to end by the last day of the year 2021.
Malaysians resending in the Peninsular, Sabah, and Sarawak are all eligible for the subjected benefits given they are only buying it for residential purposes and the house is listed in the scheme. This campaign has been carefully curated to benefit home seekers only. Sabah Law Society has made it even simpler and financially sustainable by granting a discount of 25% on legal fees for all properties eligible for HOC in Sabah.
Anyone looking to buy more than just one property is also appreciated and will be eligible to list themselves for furthermore properties. There have been no caps or limits set on the number of properties that can be purchased. Home seekers are free to get their respective properties exempted from duty under the HOC program.
Closure
Low wages have been affecting the lives of common citizens largely resulting in their inability to afford the ownership of a house. The data collected by Social Security Organisation (SOCSO) also shows that almost 82% of the jobs available in 2019 offered a wage of either RM 1000 or RM 2000 which comes in the category of low. The pandemic has only made these matters worse since the wage growth has become even slower. Considering these issues, buying a house seems almost impossible.
Nevertheless, the government has ensured that more people get the chance to have ownership of a home that they can call theirs. This step has been taken in the right direction and will assist many. People might think that buying a house is a want but a place where you can seek shelter and feel safe is a need.
The launch of the Home Ownership Campaign is a step in the right direction and proves that the government has been listening to the common people of Malaysia. Their hard work and effort in this regard have given many the chance to call a place their own and their home. By this problem-solving strategy, they will also be able to support the economy greatly.
The initiative has made the government successful as they have assisted many in order to achieve their lifelong goal. They not only solved the problem of the market but also worked in the favour of many common citizens of the country. During these tough times when unemployment, low wages and the surge of Covid-19 have affected the savings of each Malaysian, an initiative like HOC being announced by the government is indeed applaudable.
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