Call for govt to reinstate DIBS

 

IMPACT: Scheme will lift burden on house buyers, says Tropicana

PROPERTY developer Tropicana Corp Bhd hopes that the Developer Interest Bearing Scheme (DIBS) will be reinstated in 2015 Budget.

Echoing other property developers’ wish, Tropicana executive director Pam Loh said the government should be looking into bringing back the DIBS as it is hurting genuine buyers, especially first-time house buyers who usually are not equipped to fork up 10 to 20 per cent of downpayment for the property.

“By us (the developers) absorbing the interest during construction, we can reduce the burden of the buyers. At the same time, it will give them the opportunity to buy a house,” she said after the launch of the Tropicana Green Carnival, here, yesterday.

Tropicana’s green campaign will run until October 19. The campaign showcases a 3.68ha of green lung, aptly known as Central Park, with an open space concept ideal for residents seeking healthy, modern and serene lifestyle.

In the 2014 Budget, developers were no longer allowed to sell properties with DIBS features, while financial institutions were also prohibited from providing final funding for projects involved in the scheme.

In recent years, property developers have been offering DIBS for newly-launched projects to entice house buyers and investors.

On the impact of the Goods and Services Tax on property sale, Loh said it would definitely affect the market.

“However, I still see it as a positive thing the government is introducing and the market just needs time to adjust to it.

“The RPGT (Real Property Gains Tax) would also hamper the speculation market, but the real buyers are still there and what it does is narrow down the market to owner occupancy rather than for speculation.”

By BUSINESS TIMES

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