The government should consider reviving the Malaysia My Second Home (MM2H) programme as investments from foreign buyers could help stimulate the local property market.
iProperty.com Malaysia Sdn Bhd general manager for marketing and communications, Wong Siew Lai hoped that the upcoming Budget 2021 will look at this matter as quickly as possible to help encourage foreign homebuyers to invest in the local property market.
"The MM2H programme could help in reducing the property overhang and the supply of unsold units in the secondary market," she said.
Wong said the application process, however, should be further streamlined and be more investor-friendly to encourage foreign buyers.
"Even though the MM2H programme only encompasses a relatively small number out of the total homebuyers in Malaysia, it is an important driver of foreign buyer demand," she said in a statement.
Wong also said the full exemption of Real Property Gains Tax (RPGT) should be one of the top priorities in Budget 2021 to stimulate the property market.
At the moment, the exemption is limited to the disposal of three units of residential homes per individual.
Wong hoped that the new budget will improve on the existing RPGT initiative by removing or loosening the limitation of disposal units per individual to encourage more confidence in property sellers.
"This will help to stimulate more transactions and encourage sellers to pass on the savings from the exemption to the buyers," she said.
On stamp duty tax, Wong urged the government to reduce the tax for the first-time homebuyer after the end of the current home-ownership campaign on May 31, 2021.
She said this would help rejuvenate the local property sector.
"A stamp duty reduction is essential to help young Malaysians get on the property ladder. On the same note, stamp duty tax could be extended to the secondary market which will further provide an opportunity for property seekers to explore sub-sale properties," she said.
Wong said there should also be tax relief for home loan interest incurred by first-time house buyers to further encourage homeownership among young people.
"The earlier that a homebuyer gets onto the property ladder, the more time they have to benefit from capital appreciation of their properties," she said.
Meanwhile, Wong said the uncertainty brought about by Covid-19 may see more people renting a house instead of buying one.
In this regard, she hoped that the government would introduce rental incentives.
"Renting provides an opportunity for people to save on accommodation costs in the short term," she said.
