Written by: Guo Zhenhao
Redefining affordability could be the next step in providing tax rebates for Malaysians.
Perumahan Penjawat Awan Malaysia (PPAM) is an affordable housing scheme launched in early 2013 to enable low and medium income civil servants to afford homes in major towns. Since then, a slew of initiatives to make housing more accessible in Malaysia has been rolled out. Recently, a Valuation and Property Service Department (JPPH) report revealed that many of Malaysia’s Bottom 40 (B40) income earners experience difficulty buying homes priced between RM200,000 and RM300,000.
These homes consist of up to 43% of the property overhang in the first half of 2019.
Affordability Standards Vary Between States
Property consultants have weighed in, stating that the standard for affordability is subjective to each state. Land scarcity, population growth, and an ageing population are all factors that can cause housing prices to fluctuate.
Redefining Affordability Standards for Wider Housing Loan Accessibility
On the ground, Malaysians bemoan that buying a home is unfeasible even after working for years on end. Some Malaysians cite difficulty and shortage of aid when it comes to down payment.
The good news is, there’s better classifications to redirect tax dollars.
Some ministers have suggested classifying housing submarkets based on affordability. Arranging property in terms of value, and subsequently planning taxes, incentives, and income distribution could be the way forward for making homeownership accessible to Malaysians.
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Source: Free Malaysia Today