Chew Sang Hai
KOTA KINABALU: Sabah Housing And Real Estate Developers Association (Shareda) congratulates the new government on the new directive in the National Budget 2019 unveiled by Finance Minister Lim Guan Eng last Friday.
With the theme ‘Resurgent Malaysia, A Dynamic Economy, A Prosperous Society’ Shareda president Chew Sang Hai said it is a step forward to expand the economic growth and reserve the welfare of this society.
Shareda also applauds the introduction of compulsory salary deduction for repayment of PTPTN which it provacated in past few years.
Chew said the measure definitely would enhance the credit rating of the young house buyers during housing loan application.
Shareda also supported the new Government National Home Ownership Campaign in dealing with the unsold overhang residential properties.
Chew cited that a successful campaign was implemented during the financial crisis in 1998 when our country faced an financial crisis.
“The implementation of the Home Ownership Campaign scheme would be effective as it is the avenue for the co-operation between private and government sectors to overcome the overhang properties in market,” he said.
He added that Shareda, Real Estate And Housing Developers?Association (REHDA) and Sarawak Housing and Real Estate Developers?Association (SHEDA) would cooperate with the government to work on the details soon.
Shareda also applauds the announcement on the RM1 billion fund to be set up by the Central Bank of Malaysia to assist homebuyers earning under RM2,300 per month to buy affordable houses priced at RM150,000 and below with an interest as low as 3.5%.
In the above incentives, Shareda encourages private developers and members to explore the opportunities to build more affordable range of properties or houses priced below RM150,000 per unit in urban by developing innovative studio suite for newly-wed couple, bachelor or youth before they upgraded to bigger and better accommodations.
“However there are many challenges for the above development and we seek co-operation with our state government for the above implementation,” said Chew.
As for outskirt of towns, he suggested that Shareda members work with the State Government and its agency who owns land to develop houses with price range of RM150,000 and below.
Shareda also welcomes the stamp duty exemption for first RM300,000 on the property transfer letter and loan agreement for first-time buyer purchasing a house priced at a maximum of RM500,000 for two years (2020).
It also welcomes the extension of Loan Tenure under Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA), whereby the government will extend the duration from 30-35 years for first financing and 25-30 years for second financing. By extending the loan duration, the amount of monthly installment and financing burden will be lessened. The government intention is achievable by assisting the government servants in acquiring their homes.
SHAREDA lauds the government’s allocation of RM1.5 billion to build and complete affordable homes under the People’s Housing Programme (PPR), Civil Servants Housing Project (PPAM), PR1MA and Syarikat Perumahan Nasional Bhd (SPNB), so that the rakyat or homebuyers have other alternative supply from the government sector or GLCs.
On the property crowdfunding platform which will be headed by the private sector, Chew said it is welcoming and acceptable as alternative source of financing.
Recently during the opening ceremony of Shareda PropEX 2018, Shareda had signed a Memorandum of Understanding (MoU) with a private financial advisor (NewParadigm Capitals Market Sdn Bhd) which is licensed by the Securities Commission of Malaysia.
Among the objectives are that the private financial advisor (NewParadigm) who is the sole and exclusive financial adviser will, subject to all terms and conditions acceptable to both parties, advice on the establishment of a rent-to-own financing scheme via a dedicated Sukuk financing program.
In fact, Shareda in 2017 had approached the state agency as an alternative party to provide financial facility to eligible buyer for down payment. Unfortunately the proposal was unsuccessful.
On the Real Property Gain Tax (RPGT), Chew said according to the Budget presented, RPGT will be increased from 5% to 10% for companies, non-citizens and non-PR holders. As for citizens and with PR status, RPGT will be increased from 0% to 5%.
Since the current property market is inactive and lesser liquid, Shareda proposed to the government to maintain the fixed RPGT rate of 5% throughout the holding period and the implementation would improve the liquidity of property transactions in the market.