By Tharmini Kenas and Hidayah Sarudin
PETALING JAYA: In Budget 2018 which was presented on Friday by Prime Minister Datuk Seri Najib Tun Razak, the major spotlight falls on the rental market.
A 50% tax relief for rental income up to RM2,000 is expected to boost the rental market.
According to Knight Frank Malaysia managing director Sarkunan Subramaniam, the tax relief will be an incentive for people to rent out their properties directly boosting the rental market and property purchases.
This opinion was also concurred by IJM Land managing director Edward Chong who opined that this budget is a balanced budget that caters to all the stakeholders of the property industry.
Another positive outcome from Budget 2018 is the introduction of the rental law in Malaysia.
This has left some young Malaysians in a cheerful mood. "I am glad there is going to be a proper law regarding rental issues. It is so difficult to deal with landlords who try to take advantage," said Priscilla Murthy, a Biochemical Engineering student in Kuala Lumpur.
Noor Fiza Abdul Razak, a 23-year-old working adult in Kuala Lumpur, has also rejoiced at the introduction of the rental law in Malaysia. According to Fiza, a legal and proper contract supported by the law will make life easier for both her and her landlord.
Apart from the rental market, the focus also falls on affordable housing schemes such as MyBeautiful New Homes (MyBNHomes) and MyDeposit are continued or expanded.
The step-up end financing scheme is now diversified to include private developers to improve the affordable housing scheme.
In the StarProperty.my roundtable discussion on property wish list on Sep 20, Chong has proposed that the government consists of private property developers in step up end financing scheme. According to Chong, extending the scheme to private property developers will make it more workable and allow youngsters to get onto the property ladder faster.
His opinion is concurred by Khong and Jaafar Sdn Bhd managing director Sir Elvin Fernandez who said, “The market is being pushed to move towards the better relationship with household income. This probably will bring more affordable housing into the market”.
