new RPGT - Good and Bad !

The proposed new real property gain tax (RPGT) and also the removal of developers interest bearing scheme (DIBS) is good measurement to the house-buyer in general.

The removal of DIBS is the good solution as the developer generally pass the buck back to the property buyers for whatever incurred on them.

With the introduction of new RPGT, government hopes that property price will be controllable.

In the new RPGT, the increase of foreigner purchasing price from RM500,000 to RM1,000,000 is a very good counter attack on the property price. This will definitely prevent foreigner from making our property as their investment tools.

The increase of RPGT might discourage some property speculators, or for those want to have a quick on property investment. But for those with the holding power, this should not be a problem because of the low interest rate in the housing loan.

But on the negative side, developer may pass the GST incurred on their materials back to house-buyer by putting back the taxes into the property price. At the end, property buyer has to asborb all the GST incurred.