A good friend asked me what’s my wishlist for Budget 2018 when it comes to the property market the other day. Before a tiny blogger like me share my wishlist, perhaps we look at what the RealEstate and Housing Developers’ Association (REHDA) has wished for Budget 2018. The article in TheStar here. These are their wishes, in brief. This was shared by REHDA president Datuk Seri FD Iskandar.
– Home Ownership Assistance Programme (HOAP) to the Ministry of Urban Wellbeing, Housing and Local Government (KPKT). The HOAP targets first-time homebuyers, including those who have sold their previous home to upgrade and relocate. This new scheme is directed towards houses below the RM500,000 mark and for those whose household income is RM10,000 and below. This scheme will not be applicable for cash buyers.
– Exemption extension for the stamp duty financing scheme to more properties of higher threshold, as long as it still falls under the affordable category. to the stamp duty financing scheme, Currently, the 100% stamp duty exemption is only applicable to houses below RM300,000 in Budget 2017.
– REHDA asked for Account II of EPF to pay developers for the 10% downpayment. Rehda also appealed for the percentage of contribution to be accredited to Account II be increased from 30% to 50%, applicable only to first-time homebuyers.
– REHDA hopes that the Special End-financing Scheme for PR1MA to also be extended to private developers.
– REHDA also hopes that the government should attempt to waiver GST for homes under the RM500,000 category. “Currently developers are paying 6% GST for bricks, cement and roofing materials. They should charge them only if it’s above the RM500,000 mark.”
He also shared, “There has been a levy on steel introduced February this year. Previously we are paying RM1,700 per tonne, but now it is at RM 2,728 per tonne. This cost will be passed on to potential homebuyers. We are looking at the cost that can be controlled such as conversion premium, development charges and infrastructure contribution funds.”The article in TheStar here.
My own wishlist? Any measure must be to assist first-time home buyers ONLY. Actually not just the financing schemes but perhaps the Ministry of Urban Wellbeing, Housing and Local Government (KPKT) should engage property experts to provide property investment knowledge to the first-time home buyers. For example, roadshows where all the industry players could engage the potential buyers directly. This is especially when first-time home buyers are usually clueless and would just rely on their friends who may be just as clueless. There are many who said that the properties nowadays are becoming so expensive that they could never afford, yet refused to expand their choice options. I think when the people are well-informed, the market would also recover. Negative sentiment actually helps no one. Not the buyer, not the seller and certainly not the developers and the government. Cheers.
written on 29 Sept 2017
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