From the recent budget, government has re-imposed a 5% on Real Property Gain Tax (for property held more than 5 years )which has repealed this Real Property Gain Tax since year 2007 April.
However, higher rates (30%, 20% and 15% will impose for disposal property within 2 years; in the 3rd year and 4th year after the acquisition) from the Finance Bill.
Besides that, our government also give the facility of withdraw the EPF saving Account 2 for down payment on 2nd property buying.
What do you think of these 2 implications?? Can I say the government intention is stimulate people towards buying the new trend property rather than existing 2nd hand property? This would lead to a competitive market for new residential property investment. People would put their attention for 2nd property to a trendy design property as their priority even it’s not a strategic location. In this situation, those investors who had invested few properties on hand and opt for capital gain, I am afraid they might need to delay their capital gain dreams….I am sure quite a number of investors are unhappy with this.
You need to have a well and correct judgment yourself before making the investing decision and not regretting after few years later, other investors might maximize their wealth in their portfolio but you are losing from your property investment. We must taking experience from the 1998 Financial Crisis which caused many of the abandoned old properties.
So, be a smart investor and have a well plan for your property investment!
No comments:
Post a Comment