Property buyers, especially those looking for their first house, may see more goodies coming their way if the 2017 Budget includes some key incentives.
If there are concerns that it would revive property speculation, the government could potentially limit it to first-time house buyers. We think this measure could be more meaningful compared to bringing back DIBS for first-time house owners.
These are the reintroduction of the Developer Interest Bearing Scheme (DIBS), relaxed loan assessment methods, increased allocation of Employees Provident Fund (EPF) Account 2 and more 1Malaysia People’s Housing schemes.
This will be quite helpful in servicing part or the full 10 per cent deposit, or if one is unable to secure the full 90 per cent margin financing.
The biggest barrier for first-time buyers, which is financing. Budget needs to address the concern of the deposit and hidden costs, especially when buyers cannot secure the full 10 per cent margin of financing. Its will help if first-time house buyers get a margin of financing of more than 90 per cent or the method of loan assessments for first-time house buyers is changed.
