Nowadays, Lumpur. Furthermore, full GST help to

Nowadays,Malaysians are entering high real estate prices and cannot afford housing. Thesituation is worrying. Therefore, through Malaysia Budget 2018, the Malaysia’sgovernment had announced new issue about the rental estate.           First of all, from 2018 to 2020, EY.

(2017) stated that themonthly rent income of not more than 2000 ringgit, will be 50% rent relief taxrelief to stimulate the rental market. The Real Estate and Housing Developers’ Association Malaysia (REHDA) prescribed that the governmentstamp obligation be raised to decrease the theory ofproperty hypotheses.At the same time, real estate value-added tax for properties with more than twohouses can be raised, irrespective of whether the buyer or the seller is theopposite party. The association urges thegovernment to build more affordable housing, one of which is to provide someincentives to private developers.

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Counting speedy extend endorsement, decreaseof arrive utilize transformation expense and half way benefit exclusion.In addition, if government provide more “rent and buy aplan” housing, it can help those who cannot afford the 10% of the firstperiod to buy a house. The Real Estate and Housing Developers’ AssociationMalaysia (REHDA) also advised government to provide more benefits to first-timehomebuyers such as full stamp duty (currently up to RM300,000) and exemptionfrom legal rates for industrial transfers. The association also thought thatthe government should exempt building materials that can afford housingprojects from consumption tax and at the same time allow those homebuyers whoearn less than RM10,000 to cover the selling price of affordable housing whilethe building is still under construction.

            Moreover,EY. (2017) stated that the issues that had recommended in Malaysia Budget 2018is RM200 million allocated to the maintenance and renovation of houses, includinga One Malaysia maintenance fund. Besides, government will ensure that all newoffice buildings have a childcare centre, which starts in Kuala Lumpur.Furthermore, full GST help to be given on development administrations for thedevelopment of school structures and places of adore financed through publiccontribution, where certain conditions are met.

            Thechallenges that will face is that designers and mortgage holders of rentalestate will experience serious difficulties searching for purchasers. Thepurchasers cannot stand to purchase houses any longer becausethey cannot pay their month to month portions. Their pay for their job aremostly at most RM1200. Even the fresh graduate students are facing a hard timeto search for a job.

Therefore, it will be a difficulty for them to purchase ahouse with high monthly instalments.             In addition, Pui,F. (2017) stated that the challenge faced by developers was that developers remainedwith lose their financing whether not sufficient homes would sold off.

Back tothe time, purchasers are required to pay for 10 percent as down payment. Butthen, the developers allowed the purchasers to pay only one percent of the downpayment. The developers made this “generous instalment mode” just to attractmore purchasers to buy the house. The developers choose this idea because if theyoffer off less than 40 percent of the aggregate units, they might lose theirbridging fund starting with the bank. 

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