Leave RPGT alone, Govt urged
Micheal Geh
The Federal Government should leave real property gains tax (RPGT) alone in the 2014 Budget.
New Bob Group director Dr Lee Ville said that if the RPGT is increased, then it will dampen the property market, which has already started to cool.
Lee is also president of ERA Malaysia, which is the world’s leading real estate brand.
It is expected that the Federal Government will raise the RPGT rate to 30% from 15% for properties sold within two years, and 15% from 10% for properties sold within three to four years.
For properties sold in the fifth and sixth year, the RPGT is expected to remain unchanged at the current 10% and zero RPGT respectively.
“The anticipated RPGT will not deter foreigners from buying, as they are allowed to dispose their properties only after the third year,” he said.
Lee said the anticipated RPGT would work in the initial stages, curbing speculation in the short term.
“If implemented, developers will respond by reducing their delivery of residential housing projects.
“This will eventually lead to a shortage, triggering demand and causing property prices to rise up again in the long term,” he said.
Lee said the Federal Government should look into controlling price, other than cement, of essential building materials, as the rising price of raw materials was a reason for soaring property prices.
Meanwhile, Raine & Horne Malaysia director Michael Geh said the RPGT would hurt current speculators who had already bought properties, and not the future ones who had yet to buy properties.
“If the existing speculators are hurt, the banks will also be dragged down.
“The Federal Government should look at curbing speculation through other means such as providing middle-income homes with an effective delivery mechanism that ensures only the eligible income category benefits,” Geh said.
Source: StarProperty.my
let’s see what really happen after the budget2014
RPGT confirm will be there already.
There is no need to urge or say anything else because New Bob has no say in Budget 2014.
Furthermore, Dr Lee Ville is a young chap. Perhaps if you get Redha chairman to speak then it is a different story all together.
“If the existing speculators are hurt, the banks will also be dragged down.
What is this, then contiunes less speculator goreng the price? Is this mean also Bank also part of the goreng factor. Put more oil into fire
Hope the tax for property increase
2 year – 40%
3 year – 30%
4 year – 20%
5 year – 10%
6 year – 5%
More than 6 year zero
I support this, goverment revenue will increased from collect more money from greedy speculator and rich ppls buying property.
Bank cannot goreng anymore, have to follow BNM guideline.
50% of those booked the new property, but the loan are not approved by bank.
The next OPR meeting there are possibilty to increase OPR rate abts 0.25 point.
See what happen to four season and strait garden project almost 4 to 2 year still not fully sold out.
@soo
I think you ‘re referring to All Seasons. Strait Garden project was not completely
sold was due to its location near to Sewage Treatment Plant and its layout and
not fully caused by BNM guideline.
Also, All Seasons sales was hampered by its pricing and facing direction of many
units which are not preferable and not BNM guideline.
Bank will not goreng price. They will analyse the risk as well.
They offer loan to you because of your capability of repayment as main concern and only concern the property price.
I believe that government will ensure the property pricing remain competitive and affordable to all level. For istancce, Gov might be start to impose certain restriction on loan application/approval for those property price >RM500,000.
At the same time, Gov also ensure the affordable house for lower/middle income level. For isstance, Gov will rebate those developer with property price (tax incentive) <RM500,000 or reduce stamp duty for property price <RM500,000. (depend development area/state)