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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