Thursday, April 19, 2012

7-15 % discount for Bumiputera house buyers

I know this is a very sensitive  issue among the bumiputeras. But I feel that the requirement imposed by the government that bumiputera house buyers be given  discounts up of between  7- 15 %  is outdated and not relevant anymore. This ruling has been implemented since 1970 in the wake of the establishment of  the New Economic Policy. I believed the ruling served its purpose well for the last 30 years. Today, buying a house is not a luxury anymore and it is a requirement especially among the newly weds. Whether you are a bumiputera or a non bumipurea you need  a roof over your head. I don't think the government should make this a very discriminatory plan. We all need our own homes. Every one should be facilitated to get a house to call  home regardless of their ethnic groups.

I feel that if discounts are indeed  to be given, it must be given to all first time buyers who earn less than RM 3000 regardless of whether they are bumiputeras or otherwise. Discounts can also be given to government servants. This is to show recognition of the contributions made by the government servants. Moreover, their salary they earn  is much less than those  in the private sector.  Discounts however  should not be given to the greedy speculators and I notice that these speculators are like vultures and deprive ordinary people from buying their first homes. In fact, the government can impose some form of taxes on these opportunists very much like  the RPGT (real property gain tax) to discourage them from speculating on housing market. The money collected from these taxes can be used to subsidise other housing projects or use as discounts for first time buyers.

Another thing that  I don't agree with the government is they always like to increase the amount of loans that  government servants can take. I believe that the government takes this questionable step because of pressures from housing developers who are  a greedy lot. They want to make more money. I dont think this is the right strategy -to jack up the the amount of loans that a government servant can opt for. This is because the repercussion of this is really great. For one, the housing developers will automatically raise the  price their houses to match  the loans taken by government servants   .  The price of houses are now actually very ridiculous. In Bandar Baru Bangi the price of a link house is around RM 400,000. 

I think the best strategy that a governement can do is to monitor the price of houses. They have to control and regulate the prices of the houses in the country. But I'm very pessimistic. I dont know what the future  holds. I dont know whether my children are able to buy landed properties in and around KL. The price of a house is beginning to be beyond reach. 

No comments: