To curb speculation, the government has raised the Real Property Gain Tax (RPGT) to 30% after the announcement of Budget 2014.
This is the new tax rates if you sell your property:-
1st three years :- 30%
4th year :- 20%
5th year :- 15%
There will be no RPGT if you sell off your property on the 6th year.
- Curb speculation
- Prices of property will be more stable
- Oppourtunity for first time house buyers to get their dream homes
- Property market might slow down
- Developer might launch less mega projects
- Cash flow problems for developer due to slow sales
In a way, it’s a good measure as most young adults are finding hard to purchase their dream homes due to speculation in the prices of properties. Less speculation, prices of properties will be more stable.
What do you think of the new RPGT rates?