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Email your feedback

and queries to:

[email protected]

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ON FRIDAY

OCTOBER 24, 2014

H

BA

honorary secretary-

general Chang Kim

Loong’s views and stance

on several measures are

detailed below. He appreciates the

prime minister’s wisdom in

prohibiting the Developers Interest

Bearing Scheme (DIBS) and his

leading the government in the

decisions announced under Budget

2014.

DIBS

More than happy with the

government and the prime

minister’s decision to ban DIBS

“or any permutation that entails

interest capitalisation,” says Chang.

He adds that developers, as

entrepreneurs, should be

responsible and bear the risks that

are generated from their

investment. “They should not be

allowed to enjoy profits at the

expense of house-buyers bearing

the risks on their behalf. After all, if

developers claim that DIBS ‘assists

new purchasers’, they should be

asked to use the Build-Then-Sell

(BTS) 10:90 concept … if they are

sincere in not wanting to shift the

risks to the house-buyer.”

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“HBA agrees with the measures

to assist the lower- and mid-income

group to acquire their own

properties.”

CAUTION:

“To ensure that

benefits and compensations

are not abused, these should

only be available for first time

home buyers.”

Improvement

of the Skim

Rumah Pertamaku under the

purviewof Cagamas

The government has agreed

to raise the ceiling price to

RM500,000 in line with the

stamp duty exemption. The age

of the borrowers to qualify for the

scheme has also been increased

from 35 to 40 years.

SUGGESTION:

Though HBA

agrees with the above

mentioned measures, it

recommends that there should

not be any cap on age limit.

“There are many older low and

middle income earners who

have yet to own their

first property.”

States Chang: “The curb

measures announced and

implemented for next year’s budget

[real property gains tax (RPGT) exit

costs, loan-to-value ratio (margin of

finance/LTV) and prohibition of

DIBS] have achieved their

objectives in partially deterring

speculators and ‘bogus’ house

buyers. It has also brought some

sense of orderliness to the housing

arena.” However, further measures

have been prompted byHBA, which

it hopes will be implemented in

Budget 2015. Thesewill be discussed

in a subsequent feature.

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Youth

Housing Scheme and

benefits for young buyers

The smart partnership between the

government, BSN, EPF and

Cagamas offering a funding limit

for a first home not exceeding

RM500,000 for married youth

between 25 and 40 years old, with

household income not exceeding

RM10,000. The maximum load

period is 35 years. Chang feels that

under this scheme where the

government will provide monthly

financial assistance of RM200 to

borrowers for the first two years

will help reduce the burden of

these young families just starting

out. “I urge the government to

impose a restriction that properties

under this Youth Scheme cannot be

sold for the first 10 years, similar to

PR1MA properties. Borrowers can

also withdraw from their EPF

Account 2 to top up their monthly

instalment and other related costs.

“I urge the youth to grab this

opportunity, offered on a first-

come, first-served basis, for 20,000

units only.”

CAUTION:

However, Chang

advises young buyers not to

forget that the RM200 subsidy is

only for the first two years.

“Take heed with regards to Zero

Entry Cost properties,” says

Chang, as it encourages

unnecessary speculation.

Building

of more affordable

housing

PR1MA to build 80,000 affordable

homes with eligibility raised from

monthly income of RM8k to

RM10k; National Housing

Department (JPN) to build 26,00

units under People’s Housing

Programme (PPR) with allocation

of RM644 million; Syarikat

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FROM

chic nest eggs for one’s

golden years to cozy cul-de-sacs for

growing families, the Uniquely

Property Showcase 2014 offers

property enthusiasts of all ages and

income groups an affordable route

towards purchasing their ideal

dreamhomes.

Taking place fromOct 30 till Nov

2 at Penang’s popular shopping

haunt, QueensbayMall, the second

instalment of this property

extravaganza will feature close to a

dozen of the industry’s movers and

shakers of the property industry.

These include Alor Vista, Best

World Realty, GoldMart

Development, Handle Property

Group, KLMetropolitan, Oriental

Max, TFDCAsiacorps as well as the

Sunway Group and others. Not-to-

be-missed deals, promotions and

exclusive rebates will be offered at

the fair.

The brainchild of Penang-based

Unico EventsManagement, project

managerMichael Chowbelieves

that the wide range of developers on

show, will help set the showcase

apart fromother such fairs and

exhibitions andwill certainly appeal

to a broader target audience of

both local and foreign property

investors alike.

“Themain aimof the 2014

Uniquely Property Showcase is to

present andmake known the array

of projects and developments that

would appeal to those fromall

walks of life. Whether you are

newly-weds in search of your first

home or an expatriate seeking an

abode for retirement, there is

something on offer for everyone.”

Some of themore prominent

projects and developments include

BestWorld Realty’sMines

Waterfront Designer Suites and

theWoodsbury projects in Klang

Valley and Butterworth. Themuch

lauded Sunway Groupwill also

be showcasing its eagerly

anticipated Bukit Mertajamand

BatuMaung projects, as well as

the SunwayWellesley and

Sunway Cassia developments.

There are also a variety of up and

coming property projects in hot

spots such as the isle’s rapidly

developing Ayer Itam, Balik Pulau

and Sungai Ara areas. Visitors

with deeper pockets, seeking

foreign property investments

should check out exhibitions

by TFDC andHandle Property

Group for the lowdown on the

Canadian and Australian

markets respectively.

Previews aside, the

showcase also offers patrons

a plethora of information

on the ins and outs of today’s

property including advice, tips

and consultancy on just how to

go about making themost of

your investment. These talks

and forums are delivered by

some of the industry’s

leading experts.

“We are well aware that

manyMalaysians, particularly

middle income earners have

their concerns over the

consequences of next year’s GST

implementation and how it will

affect themarket. The showcase

is a great opportunity to learn

more about it, as well as grab the

best deals on your dreamproperty

prior to its implementation,”

Dreamhomes andmore

adds Chow.

Visitors to the fair will also be

in the running for exclusive

prizes and gifts as the organiser,

Unico EventsManagement, has

set about crafting an array of

lucky draws, contests, early-bird

giveaways and pre-event

Facebook offers.

Perumahan Negara Berhad (SPNB)

to build 12,000 units of Rumah

Mesra Rakyat (RMR) and 5,000

units of Rumah Aspirasi Rakyat on

privately-owned land.

CAUTION:

“Ensure the right

implementation reaches the

appropriate market. Affordable

housing must be built at the

right location and priced

reasonably between RM150k

and RM300k and not more than

RM400k in prime locations.

These should only be meant for

first-time home buyers and not

second-time house buyers in

which PR1MA is allowing with

conditions. The allocated land

must also be used to build, and

only build affordable housing,

and not partner with private

developers where only about

40% of the land (from what we

understand from the market) is

likely to be allocated for

affordable housing, and the

balance used

for lifestyle

properties,

commercial and high-

end developments.”

SUGGESTION:

The best

delivery agents for private

affordable housing are private

developers, Chang feels.

“The government can boost

the delivery of affordable

housing if they give incentives

and rebates to private

developers to build affordable

homes – such as lower corporate

tax rates, lower land conversion

premiums and/or fast track

release of unsold bumiputra

units.”

Extension

of 50% stamp duty

exemption on the instrument of

transfer and loan agreements

until December 2016 + increased

purchase limit fromRM400,000

to RM500,000

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in

Budget 2015

Property andhousing

PART2

>Opinion and comments gleaned fromthe

National HouseBuyersAssociation