Developers hopeful interest
relief will boost house sales
11/03/2009 The Star By Angie Ng
PETALING JAYA: Developers are hopeful that the government’s tax relief on
interest paid on housing loans of up to RM10,000 a year for three years
which will lower the tax bracket for house buyers, promote stronger buying
interest for houses and give a boost to the market.
The latest measure announced under the second stimulus package or
mini-budget will lower the cost of owning a property.
“Hopefully the tax relief will also apply to all existing house buyers who
have taken loans for their house purchase,” a chief executive of a property
If the tax relief only applies to new housing loans, then the impact would
be insignificant as buying activities had slowed down tremendously after the
global financial crisis hit the country’s shores around the third quarter of
last year, he said.
In welcoming the incentives for the housing sector, Mah Sing Group Bhd
managing director Datuk Sri Leong Hoy Kum said the tax relief on interest
paid on housing loans of up to RM10,000 a year for three years would result
in further savings on the cost of owning a property.
“This will encourage investment in properties which is seen as a good hedge
against inflation. We look forward to the further liberalisation of the
Foreign Investment Committee (FIC) guidelines which will provide a boost for
the property sector,” Leong added.
Khazanah Nasional Bhd’s increased investment for infrastructure projects in
Iskandar Malaysia and the expansion of the Penang International Airport will
also augur well for the property sector.
He said by allowing house buyers who had been retrenched to defer the
repayment of housing loans for a year, it would provide better cashflow to
them and lower the probability of loans going into default