Property Hunter Magazine Property Hunter Magazine Issue 51 - February 2014 | Page 60

52  53 | Contributor /// Banking and Investment News $₤ ¥ € BANKING & INVESTMENT NEWS The banking and investment industry has a crucial role to play when it comes to property. Read about the most recent news and trends in this trade Buy Property Now? What if the Demand Crumbles as Interest Rates Rise? he noted that many construction materials and services like architect fees, electrical wiring and plumbing charges could accrue the 6% GST rate. “The developer will not absorb these (GST-related costs) so (these costs) will be passed on to the buyers,” he told theSun. Richard Oon Those interested in going into the property market should do so now before the Goods and Services Tax (GST) starts in 2015, as prices are set to rise by some 4% when the new tax regime commences, said tax consultant Richard Oon. He pointed out that many construction materials under the soon-to-be abolished sales tax scheme are given a special 5% rate. However, under the GST scheme, 60 www.PropertyHunter.com.my Oon earlier gave a talk to house buyers on the impact of the 2014 Budget during the Penang International Property (PIP) Expo. Some 40 developers were present during the two-day event at the Straits Quay Convention Centre to showcase their properties. Those attending the seventh edition of the PIP Expo were also able to get updates on their registration for state low-cost and low medium-cost housing and register for Penang Development Corporation’s (PDC) affordable housing schemes. Lock in before GST? What about crumbling demand? government’s theme of a cleaner, greener, safer and healthier Penang. In his talk, Oon said the best time to buy property is now, as those purchasing can lock in the prices before GST costs can be factored in. He also called on developers to ensure top quality properties are built in the state. He said developers cannot pass on such costs to the buyer prior to the implementation of the new tax. Officiated by Penang Housing and Town and Country Planning Committee chairman Jagdeep Singh Deo, the event saw some 40 developers exhibiting their properties. The expo also featured talks on property fraud, affordable housing for the people and the 2014 Budget, as well as a public auction of properties. In his speech, Jagdeep said that demand for properties in the state has grown, in line with the state “I would like to commend developers who have ensured the production of top quality properties for they have put Penang on top of the list of the most sought-after properties in the country,” he said. Among those present at the expo were PIP 2013 organising chairman Ong Ban Seang, FIABCI Malaysia central committee member Michael Geh and IJM Land Bhd northern region general manager Toh Chin Leong.