RPGT and DIBS: Views pro and against

We asked several property experts and agents on their views on the lack of changes or announcements on Real Property Gains Tax (RPGT) and Developers Interest Bearing Scheme (DIBS) for Budget2016. Here are some of their comments:

  
Foo Gee Jen

Managing director of CH Williams Talhar and Wong

There was no reduction in RPGT, so it was good. If the RPGT is reduced, this will make the property prices more speculative.

I take a stand against DIBS. For me, it is not a step forward but a step backward instead. There may be irresponsible parties taking advantage and hiking up prices because of this policy. Instead, a grant will be a better choice. A grant given by the government to first time homebuyers would be a better choice as this would prevent a hike in house prices.

Max Sylver Sintia

Sabah branch manager,Rahim and Co

I remain neutral on the implementation of DIBS. On one hand, both the developers and buyers are happy as developers would be able to sell more houses and buyers would not need to bear the cost of house until the project is completed. However, this may push the house prices higher and cause a mark-up in property prices.

Erick Kho

President, Malaysian Institute of Estate Agents

Budget 2016 was quite underwhelming, especially since there were expectations for boosters from the government to counter the slow property market. It is disappointing that there isn’t more leniency for first home buyer, and matters such as DIBS and RPGT are not being addressed.

Sarkunan Subramaniam

Managing director, Knight Frank Malaysia
 
I am disappointed the government does not see the need for private sector to provide “affordable” homes, but just the government agencies. What is “affordable” is subjective to many levels of homeowners.
Also, affordability is only achievable if you have financing – financing is the key input in deciding on affordability. Financing is key in  deciding what is affordable. If the government fails to see that financing for first-time homebuyers is important then they fail to see the bigger picture. I am sad that matters such as RPGT and DIBS are not being addressed.

Siva Shanker

CEO, PPC International Sdn Bhd

The Budget should tackle the issue of first-time homebuyers. They should be given a higher loan margin, such as a 100% loan because a 10% deposit is a huge amount for many middle-income earners. Also, the government should bring back DIBS for first-time homebuyers, at least for those buying affordable properties. The government has to define the term "affordable", in relation to middle-income earners. They are the majority who need housing. (BAJET 2016)