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

VARIOUS initiatives have been put in place under Budget 2012 to make house ownership more affordable.

The maximum price of houses under the My First Home scheme will be increased to RM400,000 from RM220,000, and eligibility will be through joint loans of husband and wife from January 2012.

The 1Malaysia People’s Housing (PR1MA) will be the sole agency to develop and maintain affordable and quality homes, especially for the middle-income group, and it intends to develop several plots of government-owned land around Sungai Besi and Sungai Buloh for this purpose.

PR1MA will also develop areas near public transport system lines, such as the MRT and LRT, for housing.

The Government will waive stamp duty on loan instruments for the purchase of PR1MA houses.

To prevent the risk of delayed and abandoned housing projects, Islamic banks have agreed to provide syariah-compliant financing and undertake construction risks to encourage the building of houses costing RM600,000 and below.

They will use the build-then-sell concept that allows instalments to start after the house is completed.

Under the mesra rakyat, or people-friendly project, national housing corporation Syarikat Perumahan Negara Bhd will build 10,000 units that will be sold at RM45,000 each.

The Government will also rehabilitate 1,270 abandoned houses with an allocation of RM63mil.

Another RM40mil will be allocated for restoration and maintenance of public and private low-cost housing.

To provide a more conducive environment for expatriates to continue working in Malaysia, the Government will allow them to make withdrawals from their EPF contribution for the purchase of a house.

With an allocation of RM300mil, a Special Housing Fund for Fishermen will be set up to build and refurbish houses for fishermen with basic infrastructure.

More social assistance centres, known as Anjung Singgah, will also be set up in Johor, Penang and Sarawak to help the homeless.

Source: The Star

Kuala Lumpur: The impact from the real property gains tax (RPGT) hike, a move to curb speculation in the property market, will be gradual.

RPGT is a tax on properties sold less than five years after they are bought. Only the profit from the sale of a property is subject to RPGT.

It has been doubled to 10 per cent for the first two years and will remain at the previous level of 5 per cent in the third, fourth and fifth year. There will be no tax on gains after the fifth year.

RPGT exemption on a residential property is given to both husband and wife on one residential property each, once in a lifetime.

Yesterday, Prime Minister Datuk Seri Najib Razak in his 2012 Budget speech said that the existing rate of 5 per cent is not effective in curbing speculative activities and could jeopardise the ability of the low- and middle-income groups to buy houses.

These changes, he said, are low enough not to affect genuine property owners and will curb speculative activities.

Chairman of the Property Management, Valuation and Estate Agency Division of the Royal Institution of Surveyors Malaysia Adzman Shah Mohd Ariffin said that the move will deter future sales of property within two years of purchase. With prices stabilising and should they sell fast, they will not be able to make a killing.

“But, for those who bought a property three years ago, the price appreciation would have been much higher than the 10 per cent RPGT imposed,” Adzman said, adding that this category of buyers will continue to make a profit.

According to him, properties can appreciate by 20 per cent or more once completed.

Real Estate and Housing Developers’ Association Malaysia president Datuk Seri Michael Yam welcomed the move.

“The fact that there is no drastic change to the ruling on RPGT encourages long-term ownership of property which also helps the owner with capital appreciation and wealth creation as they will hold on to the property longer,” said Yam.

He added that the first two years are effectively a 100 per cent increase, thus it will help discourage short-term speculation.

“It is a gentle/soft landing which will avoid a dip in the supply and demand of property,” Yam told Business Times.

“The increase in this instance is not unreasonable, given that there are no speculative activities in the entire country but only confined to pockets of urban areas like Kuala Lumpur and Penang. These pockets of activities are insignificant compared with the total supply and demand for housing in Malaysia,” he added.

However, real estate agent Rahim & Co’s managing director Robert Ang said the 10 per cent increase is not an effective measure to try and curb speculation activities.

“If you want to curb speculation, why not something higher?” he said.

SOURCE: Business Times

Government proposes to increase the limit of house prices under the My First Home Scheme from a maximum of RM220,000 to RM400,000 beginning January 2012.

The government today proposed a review of the Real Property Gains Tax (RPTG) to curb speculation.

The government has proposed that for properties held and disposed within two years, the RPTG is 10 per cent for both companies and individuals. For properties held and disposed within a period exceeding two years and up to five years, the rate is five per cent for both.

However, properties held and disposed after five years, are not subject to the RPGT.

If not controlled, speculative activities will put pressure on the price of real estate, Prime Minister Datuk Seri Najib Tun Razak said when tabling the 2012 Budget in Parliament, here today.

Najib, who is also the Finance Minister, noted that in the long run it would jeopardise the ability of the low and middle-income groups to buy houses.

“I am confident the revised RPGT rates are low and will not affect genuine owners and curb speculative activities,” he said.

Source: Bernama