PETALING JAYA, 20 September 2019 – LBS Bina Group Berhad’s (LBS) states five key thrusts on leading township developer, for its Budget 2020 wish list. This includes extension of home-buying campaign and property financing tenure, adjustment of Real Estate Profit Gain Tax (RPGT), lowering the threshold for foreign buying of properties, as well as further incentives to encourage wider Industrialized Building System (IBS) adoption.
“Homeownership plays a key role in ensuring the well-being of the nation, both socially and economically. We at LBS hope the Government will continue to uphold its commitment to ‘house the nation’ by delivering more affordable units.
Budget 2020 presents good opportunity for us to review policies and measures to encourage homeownership, as well as to uplift the property sector, whether its through provision of incentives for potential homebuyers or easing the cost of business for property developers,” said LBS Group Managing Director, Tan Sri Lim Hock San.
LBS proposes that the Government continues the homeownership campaign (HOC) and various financial incentives until 2020, to enable homebuyers to purchase their dream home at a special rate.
LBS states housing loan tenures should also be extended from 35 years to a maximum of 40 years, for all property types, and 100% housing loans for young graduates and professionals, to enable easier access to financing options for first time homebuyers,
LBS also recommends the adjustment of the 5% Real Estate Profit Gain Tax (RPGT) imposed on gains obtained from disposal of property after five years of ownership, to promote home upgradings and boost property buyers’ confidence, to spur growth in the secondary property market.
In addition, LBS hopes the Government will introduce further incentives to promote wider adoption of IBS technology, especially, for township developments. This will enable property developers’ fast-track the delivery of quality housing units, while simultaneously reducing the building cost and reliance on unskilled foreign labour, which will bring reduce house prices.
Lastly, LBS suggests lowering the minimum property purchase price for foreign homebuyers to RM700,000 for a limited two years period to help resolve the issue of unsold residential units in the country.