Budget 2018 is an announcement every Malaysian has been waiting for. The announcement was made on the 27th October with a theme of “Shaping The Future”. Budget 2018 will determine the country’s direction in tackling various socioeconomic issues that will lead and have a profound impact on us, the rakyat. Many Malaysians who are feeling the pinch hope to find relief through the new Budget coming next year. According to The Malay Mail Online, here are some highlights of what Malaysians are expecting in the Budget 2018 in regards to housing and properties.
There are major concerns over the issue of a homeless generation in Malaysia. As the name suggests, this generation consists of Malaysians are not able to afford their own home. Malaysians can agree that renting and purchasing properties now and in its current state is too expensive. For example, renting an apartment of 2 bedrooms with limited parking and zero security costs an average of RM1,200 per month. Living costs are off the roof and affordability of housing is an issue.
In line with Budget 2018, The National House Buyers Association (HBA) came up with some methods in hopes to ease this crisis and it includes holding back property speculation through higher stamp duty rates and higher real property gains tax on buyers and sellers who own more than two properties. HBA also said the government should increase the amount of affordable homes by providing incentives to private developers by fast-tracking project approvals, cheaper land conversion or alienation costs, partial tax exemption on profits from such projects. The Real Estate and Housing Developers Association (Rehda) came up with measures to make it easier for first-time buyers of affordable homes.This includes a full stamp duty exemption on higher-value affordable properties instead of the RM300,000 limit announced in the last Budget, as well as exemption from higher conveyancing legal fee rates.
The Budget 2018 is the hot topic for all Malaysians this season. We hope to see houses become more affordable and available. However, regardless of our expectations, we hope that Budget 2018 helps ease our troubles instead of adding to it.
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