PETALING JAYA – Lending guidelines, stamp duty exemption for first-time homebuyers and properties below RM500,000, reduction of compliance cost and comprehensive homeownership campaign are among the wishlist of Mah Sing.
“We appreciate the Government’s continuous efforts to promote homeownership, especially for first-time homebuyers. We are looking forward to the introduction of the upcoming National Housing Policy and new initiatives which are expected to be beneficial for the first-time homebuyers and addressing the demand for affordable homes,” said Mah Sing group managing director Tan Sri Leong Hoy Kum.
He added that the property industry has a more substantial multiplier effect than other sectors. Hence, stimulating the property industry should, therefore, have a more significant impact on the broader economy.
MAH SING BUDGET 2019 WISHLIST
- Relaxing lending guidelines for housing loansLeong said it has been challenging for the property industry in Malaysia for the past few years especially with the loan eligibility issues.”We understand that the Government is working together with Bank Negara Malaysia on relaxing lending guidelines to enable more first-time homebuyers to secure housing loans. We hoped that this issue would be addressed, with a higher margin of financing, longer loan tenure, lower interest rates, higher Debt Service Ratio and discounted MRTA (mortgage reducing term assurance) to ease home ownership for the first-time homebuyers,” said Leong.
- Continue to exempt stamp duty expenses for first-time homebuyers and extend the incentives to affordable properties below RM500,000According to Leong, while the initiative by the Government to exempt 100% property stamp duty for first property up to RM300,000 currently is an excellent move to lessen the burden for first-time homebuyers, they hope that the initiative could be extended to first property under RM500,000.
- Reduce compliance costAccording to Real Estate and Housing Developers’ Association Malaysia (Rehda), compliance cost remains the most significant factor affecting developers’ cash flow, and it takes up an average of approximately 20% of the total cost.”In line with the Government’s continuous effort to lower the housing price to benefit the market, we would like to echo Rehda’s suggestion for the Government to review and reduce the compliance cost.
“Apart from land conversion premiums and development charges, the capital outlay for private utility companies are very high which covers surrender of the land, construction of the infrastructure, and contributions to the utility companies such as TNB, Syabas, Telekom and IWK. We generally hope that the compliance cost like the capital outlay for private utility companies can be borne or shared by respective asset owners,” he said.
- Homeownership campaign which involves the collaboration of all stakeholdersLeong urged the Government to initiate a campaign which involves the collaboration of all stakeholders such as bankers, lawyers and developers, to come up with a strategic plan to encourage home ownership, especially on affordable homes to reduce the unsold stock in the market.