Property Hunter Magazine Property Hunter Magazine Issue 51 - February 2014 | Page 23

Higher RPGT Rate in 2014 Development Cost to Rise With GST in Sabah Full house turnout to the seminar hosted by SHAREDA Currently, it stands at 1pc for properties priced RM100,000 and below, 2pc for properties over RM100,000 to RM500,000, 3pc for properties over RM500,000 to RM2 million and 4pc for properties over RM2 million. The maximum loan-to-value ratio for third and subsequent homes was also not reduced from 70pc as expected. The 50pc stamp duty exemption for first-time homebuyers still applies to sale and purchase agreements signed between 1 January and 31 December 2014. The determining factor in many cases is how easily or quickly buyers can get loans as banks have tightened requirements. The secondary market has slowed down generally but with many exceptions in different locations and property types from the first half of 2013. Buyers have to make bigger commitments as valuations and asking prices do not match. The secondary market is expected to be subdued in the first half of 2014 while getting use to the Budget 2014 terms. Some market observers say the cooling measures introduced by the government in Budget 2014 will dampen activity. Some developers now developing property priced between RM500,000 to RM1 million (previously capped at RM500,000 upwards) in 2014. Foreigners will only be eligible to buy homes above RM1 million. This is blamed on the risk of the yo-yoing government policy that is not instilling confidence in picky foreign investors wary of flip-flop