subject: Property Price Hike For Foreigners-is It Good Or Bad For Malaysians? [print this page] The property sector of any country plays a significant role in its overall economy.The consequences of a raise in property price for foreigners can be either beneficial or the other way round. Similar is in Malaysia, where buying a home or investing on property is an exercise that people undertake on a very frequent basis. The government to push the growth of this sector further is in a habit of coming up with new, improved rules and consumer friendly plans. Latest on this front is a new rule for foreign buyers but with a positive point for Malaysians too.
This report reads that the Malaysian government is planning to double the price of houses that foreigners can buy in real estate Malaysia. The minimum amount after this which an overseas buyer would need to pay in order to buy a house in Malaysia would be RM1 million. The government thinks that this step would prove fruitful for the localities in Malaysia. But, what they actually need to make this happen is something more substantial.
One thing that can be done is allowing foreign purchases in few areas while restricting the same in others. Also, it is advisable to allow foreigners to purchase properties that are for purpose other than residential use. In Malaysia, foreigners have complete freedom to buy high-end properties, which is unique when compared to other places. The price hike will keep Malaysians away from buying such properties that will finally affect the entire scenario.
Analysts on the other hand also say limited land availability limits numbers of houses that can be constructed and therefore they must be kept for Malaysians rather than being sold to foreign buyers. When asked from developers they will only favour foreign purchases as there are more chances of getting greater returns for the products.
Whatever speculations are being made today, but a solid step needs to be taken in order to help both developers as well as local people enjoy the advantage. Finally it is Malaysians who should get the chance to reap the maximum benefit from their own land, rather than people who immigrate from outside.
