The Malaysian Institute of Estate Agents (MIEA) which represents 25,000 real estate agents and negotiators has proposed two additional steps to the government to help the Malaysian property market. Its president Lim Boon Ping said that the agents and negotiators livelihood are affected due to the COVID-19 pandemic. This is especially apparent during the Movement Control Order (MCO) where viewings are definitely a no-no. Agents are also mostly commission based which meant their income has now dropped to zero.
Article in kopiandproperty.com As such, he said MIEA was making a call to the Government to place in abeyance the collection of SST (Sales and Services Tax) for Real Estate transactions until end of the year to help sellers from having to incur additional costs. He said, “The RPGT (real property gains tax) be zeroed as in 2007 till end of the year to help boost the already soft real estate market. This would help sellers to reduce losses who will face a ‘push down price demand’ from buyers.”
In his statement, he also said that this will help create a conducive environment for greater secondary market activities and also to stimulate reinvestment in light of the economic downturn and the impact of the current COVID-19 pandemic. Do read their full press statement here: Article in kopiandproperty.com
As much as I think the final decision to buy / sell should not depend solely on RPGT or the SST, I do think the suggestion from MIEA will help the market. Yeah, the government will also lose some revenue but if these agents / negotiators have their commission, they will still be spending their income in the Malaysian economy too. This will bring multiplier effects which is good for the economy as soon as we are back to work and out of MCO.
Truth is, I have many friends who told me that they do not want to sell because they will incur the RPGT of a certain %. I reminded them that the RPGT is based on the profits but I think they do not agree and understand too. So, yeah, this removal will help a few of them to make their decisions. As for the real estate agents / negotiators at home currently, do keep learning yeah. My friend Soma, the CEO of MIEA just told me about MIEA-HOPE which are FB LIVE series with many interesting and good topics. Go ahead, sign up and learn and come back stronger.
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