'My First Home' Hike In Maximum Price Has Positive Impact On Industry
Oct 07, 2011
The government proposal that the maximum price of houses under the 'My First Home' scheme be increased from RM220,000 to RM400,000 will have positive impact on the housing industry.
Real Estate and Housing Developers Association (Rehda) president Datuk Seri Michael Yam said 2012 Budget is friendly to the real estate industry and conducive to home ownership.
"We view the 2012 Budget announced by Prime Minister Datuk Seri Najib Tun Razak as positive for the housing and property industry as it encourages home ownership and long term investment rather than short term and possible speculation that is being addressed by increase in Real Property Gains Tax (RPGT) in the first two years."
He said in a statement here that the announcement will encourage house buyers to hold their properties for long term capital appreciation and enhance their personal wealth.
Yam said Rehda is thankful to the government for not introducing measures that will have drastic impact on the property industry, a key economic contributor to the country's economic wealth.
"Increasing the RPGT in the first two years of ownership to 10 percent will help reduce property speculation and promote a more stable, healthy and orderly growth of the housing industry."
He also supported stamp duty exemption on loan agreement under the PR1MA programme that will promote home ownership among young families.
Bank Muamalat deputy chief executive officer Musa Abdul Malek said most young people earning less than RM3,000 could take housing loans as it has been improved to allow for husband and wife.
"We (the Bank) think it's a good move because banks will provide maximum loans as required," he added.
Tabling the budget, Prime Minister Datuk Seri Najib Tun Razak said the government launched the scheme in March 2011 to meet the needs of those earning less RM3,000 monthly and changes are made to improve it.
