LBS Calls For Greater Measures To Boost Homeownership Within The Country

PETALING JAYA: Property developer LBS Bina Group Bhd (LBS) has proposed five key thrusts for its Budget 2020 wishlist to aid the property industry.

“We at LBS hope the government will continue to uphold its commitment to ‘house the nation’ by delivering more affordable units,” said LBS group managing director Tan Sri Lim Hock San, adding that homeownership plays a key role in ensuring the well-being of the nation, both socially and economically.

“In view of the opportunities and challenges facing the local property sector, Budget 2020 presents a good opportunity for us to review policies and measures to encourage homeownership, as well as to uplift the property sector, whether it is through provision of incentives for potential homebuyers or easing the cost of business for property developers,” he added.

LBS remains committed to support the government’s housing agenda and suggested five key measures aimed at promoting homeownership for first time homebuyers. Noting that property affordability remains a key challenge for the majority of Malaysian homebuyers, especially those from the lower-income group, LBS proposed that the government continue the homeownership campaign (HOC) and various financial incentives till 2020.

To enable easier access to financing options for first time homebuyers, LBS is of the view that the housing loan tenure should 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 spur growth in the secondary property market, LBS recommended the adjustment of the 5% real estate profit gain tax imposed on gains obtained from disposal of property after five years of ownership, stressing it will promote home upgrading and boost property buyers’ confidence.

Additionally, LBS hoped that the government will introduce further incentives to promote wider adoption of industrialised building system (IBS) technology, especially for township developments. The wider usage of IBS will enable property developers to develop fast-track the delivery of quality housing units, while simultaneously reducing the building cost and reliance on unskilled foreign labour, eventually, bringing down house prices.

Lastly, LBS proposed 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.

Source: StarProperty