KUALA LUMPUR, Oct 26 — Online property site, iProperty.com.my hopes the government will consider reducing the stamp duty tax for first-time housebuyers after the current Home Ownership Campaign ends on May 31, 2021.
It said a stamp duty reduction is essential to help young Malaysians get on the property ladder.
On the same note, the stamp duty tax could be extended to the secondary market which will further provide opportunities for property seekers to explore sub-sale properties.
“We hope the government will review policies and introduce supplementary measures to encourage homeownership among young people. For instance, tax relief for home loan interest incurred by first-time housebuyers should be reintroduced to further encourage homeownership among young people.
“The earlier housebuyers get onto the property ladder, the more time they have to benefit from capital appreciation of their properties,” said iProperty.com Malaysia Sdn Bhd general manager for Marketing and Communications, Wong Siew Lai, in a statement on its Budget 2021 wish list today.
iProperty also hoped the new budget will improve on the existing Real Property Gains Tax (RPGT) initiative by removing or loosening the limitation of disposal units per individual to encourage more confidence in property sellers.
This, she said, would help to stimulate more transactions and encourage sellers to pass on the savings from the exemption to the buyers.
At the moment, the exemption announced under the PENJANA (economic recovery plan) package is limited to the disposal of three units of residential homes per individual, effective June 1, 2020 to Dec 31, 2021.
Meanwhile, Wong also hoped that the government would introduce more initiatives on rental incentives as the uncertainties brought on by the Covid-19 pandemic may see more people preferring to rent than buying a house.
As more people are working from home, she said, the need to have a comfortable and conducive living environment has become more important than before.
“Renting provides an opportunity for people to save on accommodation costs in the short term. For example, the government could introduce an initiative that provides incentives for first-time and seasoned renters,” she said.
Wong said that homeowners are finding it difficult to sell their properties during these times, but they may consider renting them out with the right incentive.
“This type of initiative gives them benefits to renting. For example, earlier this year the government introduced tax deductions for landlords who provide discounts on rental rates,” she noted.
Another factor that could stimulate the local property market is investment from foreign buyers, where it is hoped that the Malaysia My Second Home (MM2H) programme would be revived to encourage foreign housebuyers to invest in the local property market.
“In addition, the application process could be made more streamlined and investor-friendly to encourage more foreign buyers. Even though the MM2H programme only encompasses a relatively small number out of the total homebuyers in Malaysia, it is an important driver of foreign buyer demand.
“Besides, the MM2H programme could help to reduce the property overhang and the supply of unsold units in the secondary market,” added Wong. — Bernama