Rism lauds scheme to enable house buyers to pay less in early years

KUALA LUMPUR: The step-up financing scheme, which is extended to private developers under Budget 2018, will enable more prospective house buyers who do not qualify for financing to pay less instalments in the early years of their purchase.

Chair for the Property Management, Valuation and Estate Agency Surveying (PMVS) Division of the Royal Institution Of Surveyors Malaysia (RISM) Sr Choy Yue Kwong said as houses were becoming increasingly unaffordable, it was indeed good news to pay less when income was low and repayment could be gradually increased when income rose over the years.

He said the stamp duty exemption would help the long-suffering original purchasers of abandoned projects and would also act as an incentive for the white knights to rescue abandoned schemes.

However, Choy feels it was rather odd for the government to come up with a scheme of tax exemptions in the rental market by providing a mechanism to offset the rent earned by landlords although it was only 50% and up to RM2,000.00 against income tax, he said.

"Probably the government's intention is to ensure the lower value property owners have the ability to use this incentive to maintain their properties.

"However, it will be more appropriate if the government grants the tax exemption to the tenants who are the parties in need of assistance instead of rewarding the landlords," Choy said.

On the proposed formulation of the Residential House Rental Act, he said that this was timely as this would add clarity to the landlord and tenant's rights, as well as protect both parties, but this should not just cover the residential sector but also the commercial sector.

He noted that the government has allocated a budget of about RM37.34 billion for logistical infrastructure compared with RM8.48 billion to the property sector.

This shows the government's commitment to enhancing connectivity between major towns and cities within Malaysia to spur the local economies and manpower sector, he added. — Bernama