Wednesday, November 25, 2020

Measures needed to encourage young homebuyers, govt told ahead of budget

iProperty says tax relief measures, a reduction in stamp duty and rental initiatives will help first-time homebuyers and rejuvenate the local property market.

Other News

Menteri BN sokong penuh Muhyiddin

Setiausaha Agung BN Annuar Musa yang juga Menteri Wilayah Persekutuan ketika dihubungi mengesahkan kenyataan yang dikeluarkan bersama itu.

Singapore deports Bangladeshis over anti-France posts

The individuals, most of whom were construction workers, put up social media posts 'which incited violence or stoked communal unrest' in response to the attacks in France.

Russia says Sputnik V vaccine 95% effective

It can be stored at between two and eight degrees Celsius instead of the temperatures below freezing required for some other vaccines.

FIFA bans head of African football from the game over corruption

CAF paid for Ahmad and other Muslim federation heads to travel to Saudi Arabia for the umrah pilgrimage.

2,188 kes baru Covid-19, 1,623 di Selangor

Angka keseluruhan Covid-19 kini berjumlah 58,847 kes.

Property portal iProperty has urged the government to include policies and measures to encourage homeownership among young buyers in the upcoming budget, to be tabled by Prime Minister Muhyiddin Yassin on Nov 6.

In a statement today, it listed factors such as tax relief for first-time homebuyers which it suggested that the government reintroduce.

“The earlier homebuyers get onto the property ladder, the more time they have to benefit from the capital appreciation of their property,” it said.

It also proposed a reduction in stamp duty for first-time buyers after the Home Ownership Campaign (HOC) ends next year and an extension of the reduction to property in the secondary market.

The HOC, which kicked off last year, is a government initiative to stimulate the housing sector.

On the real property gains tax (RPGT), iProperty said the existing initiative under the Penjana package in which full exemption is given for the disposal of three home units per person should be improved.

“We hope the new budget will improve on the existing RPGT initiative by removing or loosening the limitation of disposal units per individual to encourage more confidence in property sellers.

“This will help stimulate more transactions and encourage sellers to pass on the savings from the exemption to the buyer,” it said.

It also spoke of rental initiatives to support the demand for rented homes given the uncertainty due to Covid-19.

“As more people are working from home, the need to have a comfortable and conducive living environment is now more important than ever,” it added.

“Renting provides an opportunity for people to save on accommodation costs in the short term.”

It suggested that the government also introduce an initiative that provides incentives to first-time and seasoned renters.

“On the other hand, homeowners who are finding it difficult to sell during these times could consider renting if the right incentive is in place.

“This type of initiative gives them benefits for renting. For example, earlier this year the government introduced tax deductions to landlords who provide discounts on rental rates.”

It said the government should also look into the prospect of foreign buyers, and voiced hope that the budget would revive the Malaysia My Second Home (MM2H) programme to encourage foreigners to invest in the local property market.

“In addition, the application process could be made more streamlined and investor-friendly to encourage more foreign buyers,” it said.

“Furthermore, the MM2H programme could help reduce the property overhang and the supply of unsold units in the secondary market.”

Subscribe to our newsletter

To be updated with all the latest news and analyses.

Related Articles

Umno leader goes solo in frantic bid to shore up support for Anwar?

Source claims there has been lobbying by a senior politician ahead of a crucial budget vote.

Budget increase for development of Islam, Bumiputeras nothing new

The same trend was seen in the two budgets prepared by the Pakatan Harapan government.

Frontliners, civil servants can still be paid if Budget 2021 is shot down, says Dr M

The former prime minister says this was the case with the budget for 2000 which was interrupted by the dissolution of Parliament for GE10.

MP’s northern dialect causes confusion over Najib

Shahidan Kassim says he never targeted Pekan MP Najib Razak in his comments on the 2021 budget.

Let’s reject the budget and topple govt, PH MP says in leaked document

'Mini-dossier' tells MPs there is nothing to worry about if the government collapses despite several royal reminders.