Rehda’s wishlist for Budget 2012

The Real Estate and Housing Developers’ Association Malaysia (Rehda) hopes the Government will not implement any major systemic change for the property sector in Budget 2012.

While applauding the current system, its president Datuk Seri Micheal KC Yam said frequent changes in the taxation and property-buying segment would disrupt the immense investment in property by both locals and foreigners. — Bernama

He said a change, would deepen the negative perception of Malaysian legislation by foreigners, and even locals, that things are always changing.“If the system keeps changing for every budget, then the confidence level for a person to invest in local properties will also be very low.“Sustainability and standardisation of property taxes, as well as a market friendly environment, is very important for Malaysia to compete on the international arena,” Yam said after the opening of the “Green Solutions for Property Development 2011” forum here today.

It was officiated by Housing and Local Government Minister, Datuk Wira Chor Chee Hueng.

He added that the result of an inconsistent system has resulted in only four per cent of households in Malaysia being owned by foreigners.

He said the current system was good in ensuring the competency of the local property market among neighbouring countries.“However, the property segment players must be given time to adjust to a certain legislation system.“Usually, when the players are ready to adopt a new system, it is then being enhanced or upgraded, thus, making it difficult for the property developers to put it into practice,” he added.

Meanwhile, Yam said REHDA hopes the government will review the low cost housing scheme requirements and reconsider the release of unsold Bumiputera-property units, due to less demand from the respective quarter.“This will enable the Malaysian property segment to be a more market and demand-driven,” he said. BERNAMA - By The Star

11 comments

October 5, 2011 at 1:46 PMcondomana

Dear DATUK SERI,

You mean even if the government ABOLISHES all taxation in property buying segment, it will "deepen the negative perception of Malaysian legislation by foreigners, and even locals, that things are always changing"??...;)...Hehe, I bet you would have said a different thing then!

"He added that the result of an inconsistent system has resulted in only four per cent of households in Malaysia being owned by foreigners".....Until today, I am still having difficulty convincing myself that allowing foreigners to own our real estate would have more positive than negative impact to Malaysians in general.

 
October 5, 2011 at 3:52 PMPrasad

what would happen if foreigners to own were to default on their loan. will the banks try to write it off on the rest of us through bank bail outs like the US

 
October 5, 2011 at 7:43 PMpetestop

condomana,

I agree with you. Why the heck does a buyer have to pay tax, to buy something ?? Should'nt the tax be on the seller ??

The buyer does not make money buying a property.

Indeed, why should we allow easier property ownership by foreigner, when our young generation are having hard time to even own their first property ??

Likewise, I'm not too convince the MM2H program is if benefit to the locals. These are retirees coming to a lower cost country to stretch their retirement fund.
They are competing for the subsidised facilities (by tax payer) we have here, while paying no tax themselves.

Some people equate MM2H to long-term tourist visa, but I beg to differ. Because a tourist spend a short time here and spend a lot of money without burdening the system.
You think a retiree will spend much money ? They more like will try to utilise as much of the subsidised facilities here to make their money stretch.

Nothing against the MM2Hers, but if you stay here and enjoy the facilities here, then you should pay tax as everyone else.

 
October 5, 2011 at 9:26 PMDaamao

I fully agree with Datuk Yam, let's just fix 2 rules:
1. those that can afford 3rd house onwards should fork out min 30% down payment
2. those who flip the property within 5 years should be imposed 30% gain tax.

Anything less, is speculation that will deprive genuine home owner from affordable housing.

And anything less, should warrant an "Occupy Housing and Local Government Ministry" campaign, because you are paid to work for the people.

Sweet and simple.

 
October 6, 2011 at 1:24 AMCK

Eh? I think Datuk Yam is against your 2 rules la... isn't it?

 
October 6, 2011 at 12:31 PMDaamao

CK
I think so. I even think Rehda would like to see no regulation so GREED can run amok in the name of creating favorable investment atmosphere.

You can't blame them, I would do the same if I can build houses at cost of 200k and have the crowd chasing them at 1 million this year, 1.5million next year.

After all, this is what capitalism is all about, right?

 
October 6, 2011 at 5:15 PMcondomana

Daamao,

There are many good things about capitalism, but irrational speculation is one of the few bad things...:)

Without capitalism, we would not have the pleasure of enjoying mobile phones, Ipads, mega screen LCD TVs, viagra, internet etc. The world would have been so much backward today.

 
October 7, 2011 at 7:21 PMCK

My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000.

Datuk Yam have virtually won the first round. Let's wait for the RPGT outcome. Karn Cheong....

 
October 7, 2011 at 9:15 PMDaamao

Capitalism has no doubt created many good things, but if unregulated then the have exploiting the have not will "inevitably produce internal tensions which would lead to its self-destruction and replacement by a new system"

Just take a look at what is happening to the mother of all capitalism, the US of A.

 
October 8, 2011 at 3:41 PMHector VM

Daamao
Couldn't help but agree with you.

CK
What use would it be for those 3K earner? Can they REALLY own a 400K unit? I beg to differ here. 400K unit is almost equivalent to 2K instalment servicing over 30-year loan. that's two third of their income already. can u afford to live on less than 1K a month? i said less because of epf deductions and so forth.

 
October 8, 2011 at 11:58 PMCK

Hi Hector,

You have a valid point there on the loan part and maybe some fine tuning is needed to address the eligibility part...?

The scheme is meant to help first time buyer and families with a combined income of <3K. But it's your choice actually. Raising the ceiling will no doubt help make it easier for these people to qualify for loans at these price range. It might be the much needed drugs to help consume and drive the market further? I really don't know.

Most of the time, most people would want the best properties with marvelous location and fantastic amenities nearby. But you really need to be realistic, you actually have a choice by not being too choosy, there's still plenty of low-medium cost properties here or in mainland at a much lower range than the 400K cap.

You need not utilize all the 400K loan, why so Tam Sim? The key word is to not over gear oneself.

On your questions of whether one can survive with 1K/month, it's an individual choice really on what kind of balance sheet of disposable income is good for oneself. That is very subjective, but I do think one will not die of hunger with 1K la....