The federal spending plan for 2018 or Malaysia Budget 2018 will be tabled in Parliament on October 27, said Datuk Seri Najib Razak today.

The prime minister and finance minister also said the government will hold sessions to gather views and feedback from various stakeholders in drafting Budget 2018.

Recently, The Real Estate and Housing Developers’ Association (Rehda) hopes the government will seriously consider three key areas, namely financing, cost of doing business and the GST exemption.

Let’s look at Rehda proposal for Budget 2018.

1. Home Ownership Assistance Programme (HOAP)

Rehda Proposed a Home Ownership Assistance Programme (HOAP).
– Under the programme, developers will include the interest of the housing loan disbursed during the construction period in the purchase price.
– The programme will be targeted at first-time or single-property homeowners, including those who have sold their previous property to upgrade and.or relocate, subject to the following criteria.
a. House priced at RM500,000 and below
b. House price includes interest on the mortgage during the construction period.
c. Property under construction period for a landed and high-rise property.
d. Household income of RM10,000 and below.
e. Not applicable to a cash buyer.

2. Employee Provident Fund (EPF)

Rehda hopes that the money in Account 2 of EPF can be channeled directly from the fund to developer to cover 10% down payment.
In addition, Redha also appealed the percentage of contribution to be credited to Account 2 be increased from current 30% to 50% for first-time homebuyers.

3. MyDeposit Scheme & My First Home Scheme

Rehda also urged the government to continue the MyDeposit Scheme and reintroduce My First Home Scheme with a higher allocation to benefit more first-time homebuyers in addressing the issue of high entry cost.

4. Private Developers

Include private developers in the Special End-financing Scheme for PR1MA houses, which provides buyers with end-financing up to 90% to 100%, or accord them other similar schemes.

5.Reducing Or Abolish Unnecessary Cost

Rehda proposed the government to review and lower or abolish unnecessary charges or requirements with the objective of reducing the costs of doing business so that the savings can be passed on to house buyers in the form of more affordable housing.

6.Increase the Supply of Affordable Houses By lowering Prices of Construction Materials

In order to increase the supply of affordable houses, prices of certain things must come down. For instance, levy on steel, which was introduced in February this year.Instead of paying RM1700 per tonne, with this levy they are paying RM2728 per tonne.

7.GST Waiver On Construction Materials For Development Of Affordable Housing

To request the government to waive GST on the construction materials for Affordable homes priced RM500,000 and below. This will help developers and encourage more people to build affordable homes.

8.Extend the 100% stamp duty exemption for houses priced up to RM500,000 from RM300,000 currently; extend the stamp duty exemption beyond December 2018

9.Reduce legal fees for residential properties with selling price of up to RM500,000

10.Provide further incentives for the adoption of industrialized building system

11.Implement a tiered pricing threshold for foreign property buyers who depend on location

12.Revise the Bumiputera Quota Policy.

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