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Developers are hopeful that
the government’s tax relief on interest paid on housing loans of up to
RM10,000 a year for three years which will lower the tax bracket for
house buyers, promote stronger buying interest for houses and give a
boost to the market.
The latest measure announced under the second stimulus package or
mini-budget will lower the cost of owning a property.
“Hopefully the tax relief will also apply to all existing house buyers
who have taken loans for their house purchase,” a chief executive of a
property company said.
If the tax relief only applies to new housing loans, then the impact
would be insignificant as buying activities had slowed down tremendously
after the global financial crisis hit the country’s shores around the
third quarter of last year, he said.
In welcoming the incentives for the housing sector, Mah Sing Group Bhd
managing director Datuk Sri Leong Hoy Kum said the tax relief on
interest paid on housing loans of up to RM10,000 a year for three years
would result in further savings on the cost of owning a property.
“This will encourage investment in properties which is seen as a good
hedge against inflation. We look forward to the further liberalisation
of the Foreign Investment Committee (FIC) guidelines which will provide
a boost for the property sector,” Leong added.
Khazanah Nasional Bhd’s increased investment for infrastructure projects
in Iskandar Malaysia and the expansion of the Penang International
Airport will also augur well for the property sector.
He said by allowing house buyers who had been retrenched to defer the
repayment of housing loans for a year, it would provide better cashflow
to them and lower the probability of loans going into default.
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