Friday 29 Mar 2024
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KUALA LUMPUR: With the upcoming Budget 2015 to be tabled in less than two weeks, Mah Sing Group Bhd managing director and chief executive officer Tan Sri Leong Hoy Kum has asked the government to consider implementing certain measures to help first-time home buyers.

“In line with the government aspiration and to assist first-time property buyers, we would like to request that Developer Interest Bearing Scheme (DIBS) be allowed for first-time home buyers,” said Leong in a statement yesterday.

DIBS could bridge the gap for genuine home buyers who will be able to afford their first home in two to three years’ time, he said, by allowing them to lock in properties at current prices. “With increasing salary in two to three years when the property is completed, the repayment capability of purchasers would have increased.”

DIBS, a scheme in which the developer would pay for the interest cost on behalf of property purchasers during the construction of property, was prohibited in last year’s budget. 

Leong  also asked the government to extend tax relief to all interest incurred on end-financing for the first home.

Alternatively, he suggested the government consider providing grants of up to 10% of the purchase price of affordable properties to first-time homeowners so it would be easier for them to own their first property.

In addition, Leong hopes  the government will extend the 50% stamp duty exemption for first-time buyers of properties below RM400,000, and maintain its stamp duty rate of 3% for portions of the purchase price exceeding RM1.5 million, as “any increase would add burden to owning homes”.

On the goods and services tax (GST), Leong echoed the request from the Real Estate and Housing Developers Association (Rehda) that all types of contracts made prior to the announcement of GST (on Oct 25, 2013) be entitled to zero-rating during the transition period.

“For SPAs [sale and purchase agreements] of land entered into prior to April 1, 2015, payments received or invoices issued prior to April 1, 2015 should not attract GST if the supply of land is made after April 1, 2015,” said Leong.

Leong also asked that residential properties priced up to RM1 million be zero-rated.

“We would like to reiterate the view that house price increases are due to demand exceeding supply in good locations, as well as cost-pushed inflation,” he added.


This article first appeared in The Edge Financial Daily, on October 1, 2014.

 

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