Come 4pm this evening, Malaysians from all walks of life will be glued to their televisions, radio and even mobile devices as the highly waited Budget 2016 will be unveiled today.
What exciting measures will be announced, especially in relation to the property market? Will there be more cooling measures imposed? Perhaps there will be changes to the Real Property Gains Tax? Reintroduction of the Developer Interest Bearing Scheme? Increase supply of affordable housing in more strategic areas?
iProperty.com Malaysia asked Malaysians what they are expecting and more than 6,000 people shared their views with us.
Here is a recap of Budget 2015:
The findings revealed that Malaysians’ are of the opinion that the various housing schemes introduced in Budget 2015 were not enough to address the rising demand of affordable homes. Perbadanan PR1MA Malaysia (PR1MA) has to-date approved 153,000 units of affordable houses to be built in 110 locations nationwide, except in Labuan, and is targeting to have another 250,000 units of affordable housings to be approved by the end of the year 2015.
As of July 2015, PR1MA has already received a total of 1,016,000 applicants. These homes are priced at between MYR100,000 and MYR400,000, with the average cost being between MYR250,000 and MYR300,000.
As such, what are they expecting from Budget 2016?
Respondents are calling for an increase in the Real Property Gains Tax, especially for foreigners. 24% are hoping for an increase across the board, while 18% are hoping for a decrease.
With Budget 2016 just days away from being announced, the top four schemes that respondents are hoping the government will look at having better control on property prices, reducing housing loans & interest rates, introducing better options for housing schemes and to also reintroduce the Developer Interest Bearing Scheme (DIBS)
Respondents are hoping that the government will introduce other effective schemes that can help the under 30’s afford a property by also taking into consideration affordability of current property prices, inflation rates and income levels.
The people also hope that the housing limit under the Malaysia My First Home, a scheme introduced in Budget 2011, and PR1MA, established under the PR1MA Act 2012, will be increased and also built in strategic locations with good public transportation
Aside from this, they are also hoping that government will provide more tax incentives for landlords as it will encourage property owners to focus on renting properties out rather than selling for profit.
With the demand for affordable housing on the rise, respondents are also hoping that the government will look at bringing back the DIBS scheme but target it specifically for first time home buyer that have a low to medium income.
What are you expecting from #Budget2016 and did Budget 2015 meet your expectations? Comment below and share your thoughts!