Budget 2011 Overview - Warisan Merdeka & Property

On Friday 15^th October 2010 our beloved prime minister addresses the Budget for Malaysia 2011. Overall expectation was quite high & the response was overwhelming. I will comment some point of the budget & hopefully the governments take note & reconsider certain aspect of the budget which needed improvement.

RM 5 Billion Warisan Merdeka Project.

- RM 5 billion project

- 100 storey building

- In the hearth of KL

What were they thinking. Have a feasibility studies or market study been done when proposing this project? Or its just merely a guts feeling or some recommendation by people who have interest on the project. If its just for pride & glory for another tallest building in the world forget about it. There is no point to undergo this project. Even at the moment the project to develop Kg Baru still not yet rationalise.

Government need to rethink about this project. RM 5 Billion is a lot of money. Better that money spend to take over abandon projects around the city rather than make another mega project which we do not know the whether it will be full or not.

My suggestion : -

- Rather than make it 100 storey building make it lower but fully artistic design based upon the country’s rich cultural diversity.

- Take over abandon projects around the city (using the surplus money on the 1st suggestion above)

Property aspect - Full Loan for 1^st time Buyers

- Full loan for income Less RM 3000 house value less than 220k

- 50% Stamp duty exemption for house not exceeding 350k

Reflecting to the current increase of house price or in my words as overpricing of the property market this is among the best announcement by the government. Government realizes the importance to help the new X Generation in having to own property rather than renting. The incentive includes full loan for 1^st Home Buyers for person earning less than RM 3000 per month.

Newly married couple should take this opportunity to purchase house separately rather than combine to get full benefit of the incentive. However, I do believe this announcement will make the property market more attractive to buyers (especially generation X) & may lead to higher prices offered.

My advise :

-Take the fullest loan at the fullest length years. Islamic banking if possible.

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