While they described the new impositions on real properties untimely, property players welcomed the government’s initiatives to boost Malaysia’s real estate sector.
Under Budget 2019, the government proposed to introduce a five percent to 10 percent real property gains tax on homes sold above RM200,000 as well as raise the stamp duty for residential properties priced above RM1 million from three percent to four percent.
“These measures will definitely impact the industry, especially in these trying times,” noted Real Estate and Housing Developers’ Association (REHDA) President Soam Heng Choon.
Nonetheless, he described the government’s National Home Ownership Campaign as a positive move in managing unsold residential units, reported Bernama.
“Coupled with the stamp duty exemption on transfer instruments for the purchase of first houses priced between RM300,001 and RM1 million, it is indeed a step in the right direction towards encouraging people to own properties, which is an effective wealth-creating instrument.”
Soam expects the stamp duty waiver for homes costing up to RM500,000 and the RM1 billion Fund for Affordable Homes that is set to be established under Bank Negara Malaysia to help first-time homebuyers with household income of below RM2,300 –acquire a home for up to RM150,000 at a low financing rate of up to 3.5 percent per annum – to boost home ownership.
“In addition, the RM25 million allocation to Cagamas for mortgage guarantee for first-time buyers earning up to RM5,000 monthly is expected to further accelerate the growth of the property market.”
Meanwhile, he expects that the government’s plan to extend the loan tenure in Public Sector Home Financing Board to 35 years from 30 years for first financing and 30 years for second financing to alleviate the financial burden of those hampered by high monthly loan instalment payments.
Soam believes the government’s allocation of RM1.5 billion for affordable housing projects under the Malaysia Civil Servants Housing Programme, People’s Housing Programme, Syarikat Perumahan Nasional Bhd and PR1MA would help ensure that affordable homes are made available to eligible buyers.
“We hope the government will continue to undertake the provision of this category of houses,” he added.
Image source: Free Malaysia Today
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email email@example.com
As a property buyer, it is important to be well informed on the buying process and laws governing the housing industry. Read more here!