Easing hurdles to home ownership

The Budget 2025 has been identified as a key opportunity for real estate players to address the needs of first-time home buyers in Malaysia. Proposals include tax deductions on interest during property construction, a one-time grant for first-time buyers, and expanded rent-to-own initiatives. The Real Estate and Housing Developers’ Association Malaysia (Rehda) suggests a personal tax relief of RM20,000 for properties up to RM500,000 and a RM30,000 grant for the same price bracket. Rehda president Datuk Ho Hon Sang also proposes a task force to analyze housing demand and supply, ensuring decisions are data-driven. He suggests tax-deductible payments for low-cost housing construction to alleviate the burden on purchasers. Additionally, tax incentives for green building initiatives are recommended to support the environmental, social, and governance (ESG) agenda. Zerin Properties founder Previn Singhe suggests reintroducing the Home Ownership Campaign, paired with additional tax deductions for home loan interest and rent-to-own schemes. He also recommends tax incentives for developers focusing on properties priced below RM400,000 to stimulate supply. Tan Kian Aun, president of the Malaysian Institute of Estate Agents, advocates for stamp duty exemptions in secondary markets and the expedited introduction of the Residential Tenancy Act to mediate landlord-tenant disputes and inspire investor confidence. Overall, the proposals aim to promote home ownership amid rising property prices, improve affordability, and create a more sustainable ecosystem for first-time home buyers in Malaysia.

Source: thestar.com.my
Published on 2024-09-29

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