PETALING JAYA (Oct 7, 2011): The Real Estate and Housing Developers’ Association Malaysia (Rehda) said the reviewed real property gains tax (RPGT) rate is positive for the housing and property industry.
Its president Datuk Seri Michael Yam said the renewed RPGT rate encourages home ownership and long-term investment, rather than short term gains and possible speculation.
In the 2012 Budget announcement, Prime Minister Datuk Seri Najib Abdul Razak said the current 5% RPGT rate has been reviewed to 10% for properties held and disposed within two years.
For properties held and disposed within a period exceeding two years and up to five years, the rate remains at 5% while properties held and disposed after five years are not subject to RPGT.
“This announcement would also encourage home buyers to hold their properties for long term capital appreciation of the property, and enhancing their personal wealth at the same time,” said Yam in a statement today.
He said the association said it is thankful to the government for not introducing measures that will have drastic impact on the property industry, which is a key economic contributor to the country’s economic wealth.
“Increasing the RPGT in the first two years of ownership to 10% will in fact help reduce property speculation and promote a more stable, healthy and orderly growth for the housing industry,” he added.
In his speech today, Najib said if real estate speculative activities are not controlled, it will pressure prices of real estate and jeopardise the ability of the low and middle income groups to buy houses.
Meanwhile, the limit of house prices under the My First Home Scheme has been increased from RM220,000 to RM400,000, and will be available to house buyers through joint loans of husband and wife beginning January 2012.
Yam said Rehda welcomes the improved scheme, following its recent appeal to raise the price limit to RM350,000, a move which will help those living in urban areas to purchase homes.
Source: The Sun Daily