Affordable housing: Filepic of low-cost homes in Kepala Batas.

THE Government?s move to help first-time house buyers to purchase homes priced up to RM400,000 will prompt developers to introduce more affordable housing.

Under the Budget?s proposal, first-time buyers with a combined in-come of about RM6,000 will be eligible for loans to buy houses priced up to RM400,000.

Real Estate Housing and Develo-pers? Association (REHDA) Penang chairman Datuk Jerry Chan (pic) said the move would not only encourage developers to launch more houses that were within the middle-income range, but to also stimulate the construction industry as well.

He also welcomed the move by 1Malaysia People?s Housing to develop and maintain affordable and quality houses, specifically for the middle-income group,

?The allocation of RM443mil to boost projects under the Program Perumahan Rakyat and the RM63mil to rehabilitate 12,270 abandoned houses are also good news for the construction industry and the middle-income earners,? he added.

Speaking on the Government?s effort to curb speculation by reviewing the real property gain tax (RPGT), Chan said the impact of the proposed move would be minimal.

Under the Government?s 2012 budget, the proposal is to impose a 10% RPGT on property held and disposed off within two years, compared to the present RPGT rate of 5%.

?It is not a large quantum. Besides due to the global market weakening, the speculative market is also (believed) to be cooling off (here),? he said.

Penang Master Builders & Building Materials Dealers? Association immediate past president Datuk Finn Choong said that on paper, the proposals looked good.

?Every plan boils down to implementation. If the proposals can be executed with efficiency and without leakages, it will benefit the people,? Choong said.

SOURCE: The Star