PETALING JAYA (OCT 11): Property developer Mah Sing Group Bhd is hoping that the government will consider continuous improvements to the Real Property Gains Tax (RPGT) policy to boost property market activity.
While Mah Sing appreciates the government’s willingness in listening to market feedback and announcing the improvement to the RPGT policy in its Budget 2020, its founder and group managing director Tan Sri Leong Hoy Kum hopes more could be done to stimulate the property market.
“The revision will allow sellers to pay lower RPGT. However, we hope continuous improvements to the RPGT policy can be considered to boost more interest and activities in the secondary property market, as many buyers are looking to upgrade after disposing their older units,” said Leong.
The government announced revising the base year for property acquired at Jan 1, 2013 for assets acquired before Jan 1, 2013 as compared to the previous base year of Jan 1, 2000.
It also announced its proposal to reduce the foreign ownership threshold value for high rise residences in urban areas from RM1 million to RM600,000 in 2020.
“Lowering the threshold of high-rise property prices in urban areas from RM1million to RM600,000 in 2020 will have a positive impact as foreign buyers are a blue-ocean pool of potential buyers which can reduce the overhang of properties in this price point.
“It is crucial that the respective state governments respond to this positively and revise their ceiling prices accordingly,” Leong notes.
Meanwhile, he also thinks that the announcement of the new Rent-To-Own (RTO) financing scheme is favourable towards first time home buyers who are facing difficulties in coming up with the initial 10% down payment and securing end-financing as it serves as an alternative option for home-ownership.
“As end-financing has continued to be amongst the major challenges for home buyers, we believe the RTO financing scheme would help to stimulate the market as first time home buyers are now given aid and flexibility to own their preferred home at the agreed purchase price during the leasing tenure once their financial position strengthens.
“We also commend the government for providing stamp duty exemptions on the instruments of transfer in this scheme as this helps to reduce the financial burden that first-time home buyers need to bear when purchasing a home,” Leong commented.
He also appreciates the government’s initiatives to help the youths and young married couples to own their first home by extending the BSN Youth Housing Scheme from Jan, 1 2020 to Dec 31, 2021.
The scheme is offered for financing the purchase of either completed, under construction or sub-sales properties priced from RM100,000 to RM500,000.
“Obtaining housing loan has been the number one challenge of owning a home, hence offering a 10% loan guarantee to enable borrowers full financing and RM200 per month instalment assistance that will be credited to customer’s financing account for a period of 2 years will greatly help more youths and young married couples in owning their first home,” Leong concluded.
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