Everyone, do you support Real Property Gains Tax (RPGT) or are you against it? I think for people without properties, this move where the government extended the RPGT period to be ‘forever’ has the biggest negative impact. Everyone is calculating how much they will have to pay when they sell the property later, even though they have not yet bought a property today. Truth is, it’s just 5% if it’s sold on the 6th year of ownership. Earlier article here: RPGT: 3 personal thoughts So, will it help if the 5% on 6th year onwards is removed?
Article in edgeprop.my The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) is urging the government to review the current Real Estate Property Gains Tax (RPGT) so it can have a positive impact in stimulating the country’s housing market. This is because property ownershipfrom 6th year onwards should not be deemed as speculative anymore.
It said, “The removal and reduction of the RPGT after the fifth year will indirectly stimulate the property market and encourage more buyers and investors to re-enter the property market and this will also assist to reduce the property overhang and help developers to reduce the supply of unsold units in the secondary market.”
PEPS also suggested that first-time homebuyers of properties below RM500,000 be given 100% loan while the margin for the third property be increased to 80%. Government should also allow more funds from the borrower’s EPF Account 2to be withdrawn for the purchase of affordable homes.
It said that state governments should also consider lowering the minimum threshold for foreigners to own properties in Malaysia, such as from RM1 million to RM800,000 in Kuala Lumpur and from RM2 million to RM1 million in Selangor. PEPS also shared many more recommendations. Please read it here: Article in edgeprop.my
I generally agree that RPGT from 6th year onwards could be removed for Malaysians. However, no reduction should be implemented for foreigners. Please always remember that whenever a crisis happens, Malaysians will still be here while foreigners will just dump whatever properties they own.
I disagree with higher loan amount for first-time home buyers. I seriously hope all these first-time home buyers are also serious with their investment and save for the homes instead. If it’s out of reach, it simply meant they should consider something more affordable. Else, it should also entail a change in lifestyle. Well, I am just a blogger. Happy evaluating and buying.
Next suggested article: Ability to repay borrowings, very important