Govt open to reintroducing DIBS
The government is open to reintroducing the Developer Interest Bearing Scheme (DIBS) for the residential property market if there are indications that the ban is creating a negative impact, said Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan.
“There are some suggestions made by the industry, we will look into it. There are pros and cons, there’s no hard and fast rule on this. If it is not abused, it’s a tool for everybody to sell their houses and to make it more affordable for the people. We will look at it on a case-by-case basis. It’s not cast in stone. Some policies can be changed mid-term,” he told reporters at the 17th National Housing & Property Summit 2014 yesterday.
“If there are some indicators that DIBS can reintroduced we have no problem with it but the most important thing is we must be flexible and nimble,” he added.
During the Budget 2014 announcement last year, Prime Minister Datuk Seri Najib Abdul Razak announced the removal of DIBS, amongst a slew of cooling measures for the property market. Since then, some developers have urged the government to allow DIBS for first-time home buyers.
MKH Bhd group managing director Tan Sri Eddy Chen who spoke at the summit debate titled ‘Are the Cooling Measures Good for the Market and House Buyers?’, for one is confident that DIBS can be reintroduced in a manner which could deter past abuses from happening again. He however did not elaborate on this.
National House Buyers Association secretary-general Chang Kim Loong, who also spoke at the debate, is adamant that it not be reintroduced in any shape or form saying that DIBS encourages speculation which artificially inflates property prices.
“In the event of an economic downturn, banks saddled with too much DIBS end-financing could collapse as the losses from such DIBS end-financing will erode the banks’ capital,” he added.
Meanwhile Abdul Rahman said in his keynote address that the ministry is proposing to apply for funds from the Ministry of Finance to buy strategic land in urban areas to develop low cost and affordable housing in the future.
“Some people say that government should not buy land. I disagree. We should be aggressively buying more land in the urban areas. The government of Sarawak is doing it and I know Johor is looking into it but for the federal government, I find it increasingly difficult to find land in good strategic location to build PPR (People’s Housing Project) within urban centre.
“That’s why buying land now would be a very interesting strategic policy. It may be expensive but you all know the price of land will always go up. The government will not lose in terms of value,” Abdul Rahman said.
Chang questioned the ministry’s move to buy land, stating that it would be more meaningful for the government to take over responsibility for all low-cost housing in the country instead.
Source: The Sun Daily
reintrodction of DIBS will just further push up household debts where bank negara is trying to suppress it. DIBS will only benefit the cronies and greedy developer.
DIBS shall offer to those 1st time buyer only.
aiyor don’t be naive lah. no dibs also got other rebates mah. all the macam macam rebates everywhere. whats the diff?
Before implemented most of the people said DIBS should be removed.
Now you want it back !!!! How is the “taste” like ?
Still have PR1MA and affordable housing to choose.
During DIBS and easy housing loan era, I knew many first time house buyers eventually turn into speculators and did the “let go” process because felt too sayang if not bought when realise house price keep increasing like crazy. Yes, lured into the dark sight of the greediness, fan by developers and bankers. Nowadays, speculators jobs not just done by uncles and aunties.
Agreed with National House Buyers Association secretary-general Chang Kim Loong on DIBS.
Actually not difficult to make it very costly for speculators. The state gov could always introduce more “tax” against flippers. An example, maybe for those who wish to sell their properties less than 5 years after OC can be charged a one-off tax of say 40% of transaction value. That would be much more effective than no-DIBS, as this DIBS thing can take many forms, which is difficult to trace and control.
Whereas for plain vanilla tax, there’s no running away. All transactions have to go through land office for name change. So it’s as simple as (1) OC date – check (2) resale date – check (3) Less than 5 years, 40% tax – check…:)
@chopper
What will happen to those really in financial trouble and need to let go the house and yet force to pay 40% tax as you suggested?
This @chopper really know how to chop people…
Would the banks offer to cut your credit card interest to 0% when you’re in financial problem? Would the pawn shop offer you free money when you’re in financial trouble and have to pawn that favourite rolex of yours? Haha!
Anyway, 40% is just a random number, it could well be 30%, 25%, something that makes flipping properties not worth its while.
chopper, your suggestion is make sense. But now everywhere also market slow, if your suggestion is implemented, developers will be in big problem. Ivory maybe the first to close shop.
Its clear that we see many immigrants low level paying engineer here in Penang, where their sole intention is to rip off penangites and dont really have a holding power. Whatever the state goverment do, they need to prioritise the real home buying Penangites. But we cant expect much from that Melaka boy anyway, as he himself is an imported rotten fruit.
@James
Loser speaking liao.. lol.
Actually why need to differentiate penangnites, melaka boy or etc??
Isn’t that malaysia is for Malaysian?
Agreed that government should prioritise the real first home buyers.
May impose higher tax to those who own more than 1 residential home. Or implement stricter Total Debt Ratio to prevent flippers……
Always need to strike a balance between inflation and economic……..
@IsaacTan
Don’t assume everyone needs to borrow.
I didnt assume everyone needs to get a loan. As i mentioned, may impose higher tax and etc……