Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum hopes the government will offer additional 'goodies' in Budget 2021 (to be tabled next month), to promote homeownership for first-time home buyers.
He wishes that the government will reinstate the maximum loan tenure to 45 years from the current 35 years, and use gross income rather than net income in the loan application review.
Leong hoped that the government will also consider implementing Developer Interest Bearing Scheme for first-time homebuyers as the current interest rate is low enough for such a scheme.
"This will allow first-time homebuyers to not service their loan interest and rentals at the same time during the construction period. We are also hopeful for the government to continue working with financial institutions to relax lending requirements to boost homeownership, especially for first-time homebuyers."
"The outbreak of the Covid-19 has certainly placed the world on edge, changing our daily routines and lives. The property sector is affected by challenging market conditions brought by the pandemic and the tight lending environment."
"However, the mid to long term outlook remains positive supported by strong fundamental demand for property due to the young demography," Leong said.
Leong said the property industry has a multiplier effect on over 140 industries.
In efforts to spur more activities in the property industry and related sectors, he hopes the government will consider reducing compliance costs, and resume Malaysia My Second Home Programme (MM2H).
Leong said compliance cost remains one of the most significant factors affecting developers' cash flow.
The Real Estate and Housing Developers' Association Malaysia has said compliance cost takes up an average of 20 per cent of the total cost of construction.
"We hope the government could review and reduce the compliance cost. Apart from land conversion premiums and development charges, the capital outlay for private utility companies is very high. This encompasses surrender of the land, construction of the infrastructure, and contributions to the utilities companies such as TNB, Syabas, Telekom, and Indah Water.
"We hope that compliance costs such as capital outlay for private utility companies can be borne by the respective asset owners so that savings can be passed on to buyers," he said.
On MM2H, which has been temporarily halted as the programme is under review, Leong hopes it would resume and there will be more investor-friendly policies.
Meanwhile, real estate agents in the country urged the government to eliminate or reduce stamp duty on property purchases.
They are asking the government to also provide more support for first-time home buyers and lower the Real Property Gains Tax (RPGT).
This is among the wish list for almost 350 agents for the upcoming Budget 2021 on November 6, 2020, according to a survey by Juwai IQI.
Juwai IQI executive director Kashif Ansari said a stamp duty exemption would save home buyers at least RM20,000 on a typical purchase.
Kashif said a stamp duty exemption would also make it easier for first time home buyers to get into the property market.
"It will also stimulate investor activity and encourage trade-up buyers to move while the exemption is in effect," he said in a statement recently.
"Any measure that makes their first purchase more affordable would be of great benefit both to the real estate market and to society as a whole," he said.
On the RPGT, Kashif said the tax is implemented to curb speculation and to discourage people from flipping their property for a quick profit.
The government has put in place the RPGT exemption for Malaysians who sell their residential property between June 1, 2020, and December 31, 2021, limited to the disposal of three residential properties by an individual.
Kashif said these are laudable goals that support long-term property ownership and the financial health of families.
"It will encourage upgraders to enter the market and reassure investors that they will be able to keep more of their earnings, rather than be taxed upon sale," he said.