Thumbs up for removal of RPGT for older houses

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FREE MALAYSIA TODAY. 29TH OCTOBER: The National House Buyers Association (HBA) has welcomed the government’s move to abolish the Real Property Gains Tax (RPGT) on properties held for more than six years.

Commenting on Budget 2022, HBA secretary-general Chang Kim Loong said the RPGT was an anti-speculative tax and any property held for more than six years is not considered a speculative investment.

He also welcomed the RM2 billion allocation for a scheme to guarantee housing loans for those without stable incomes.

“The gig economy has been a lifesaver to many who lost their jobs and had to resort to becoming ride-hailing drivers and food delivery jobs or other forms of freelance work.

“These employees are still economically productive and as such should have access to financing to buy assets such as property.”
Chang, however, said that HBA hopes the scheme would be limited to first-time house buyers and only for affordable properties.

Meanwhile, Melaka-based developer Anthony Adam Cho said the abolition of the RPGT on properties held for more than six years would be a boon for genuine property investors.

“Genuine house owners who have been hesitant to dispose of their properties because of the tax can do so without worrying about the costs.

“The profits on certain properties could be very high. For example in 2012, you could get a house in Putra Heights for RM300,000. Now it is valued at over RM1 million. So the RPGT on this would be very high.”
Cho said the RPGT on properties held for a long time is unfair to the buyers.

On the loan guarantee scheme for those without stable incomes, Cho said the RM2 billion would prove to be a good start.

“We know many without stable incomes have been facing difficulties in obtaining housing loans, so this will help.”