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/// Banking and Investment News
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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,
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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.