Malaysians are entering high real estate prices and cannot afford housing. The
situation is worrying. Therefore, through Malaysia Budget 2018, the Malaysia’s
government had announced new issue about the rental estate.
First of all, from 2018 to 2020, EY. (2017) stated that the
monthly rent income of not more than 2000 ringgit, will be 50% rent relief tax
relief to stimulate the rental market. The Real Estate and Housing Developers’ Association Malaysia (REHDA) prescribed that the government
stamp obligation be raised to decrease the theory of
At the same time, real estate value-added tax for properties with more than two
houses can be raised, irrespective of whether the buyer or the seller is the
opposite party. The association urges the
government to build more affordable housing, one of which is to provide some
incentives to private developers. Counting speedy extend endorsement, decrease
of arrive utilize transformation expense and half way benefit exclusion.
In addition, if government provide more “rent and buy a
plan” housing, it can help those who cannot afford the 10% of the first
period to buy a house. The Real Estate and Housing Developers’ Association
Malaysia (REHDA) also advised government to provide more benefits to first-time
homebuyers such as full stamp duty (currently up to RM300,000) and exemption
from legal rates for industrial transfers. The association also thought that
the government should exempt building materials that can afford housing
projects from consumption tax and at the same time allow those homebuyers who
earn less than RM10,000 to cover the selling price of affordable housing while
the building is still under construction.
EY. (2017) stated that the issues that had recommended in Malaysia Budget 2018
is RM200 million allocated to the maintenance and renovation of houses, including
a One Malaysia maintenance fund. Besides, government will ensure that all new
office buildings have a childcare centre, which starts in Kuala Lumpur.
Furthermore, full GST help to be given on development administrations for the
development of school structures and places of adore financed through public
contribution, where certain conditions are met.
challenges that will face is that designers and mortgage holders of rental
estate will experience serious difficulties searching for purchasers. The
purchasers cannot stand to purchase houses any longer because
they cannot pay their month to month portions. Their pay for their job are
mostly at most RM1200. Even the fresh graduate students are facing a hard time
to search for a job. Therefore, it will be a difficulty for them to purchase a
house with high monthly instalments.
In addition, Pui,
F. (2017) stated that the challenge faced by developers was that developers remained
with lose their financing whether not sufficient homes would sold off. Back to
the time, purchasers are required to pay for 10 percent as down payment. But
then, the developers allowed the purchasers to pay only one percent of the down
payment. The developers made this “generous instalment mode” just to attract
more purchasers to buy the house. The developers choose this idea because if they
offer off less than 40 percent of the aggregate units, they might lose their
bridging fund starting with the bank.