IT is a good time to buy big-ticket items, such as property, because of the low interest rate and the incentives provided, said Socio-Economic Research Centre (SERC) executive director Lee Heng Guie.

Those with stable income and employment can take advantage of the conducive environment to purchase such items.

“Interest rates are very low.

“For those who wanted to buy a house or get another house or upgrade, they can take advantage of the low interest rates, the home ownership campaign (HOC)  and even the RPGT (real property gain tax) exemption to buy a house,” he told The Malaysian Insight.

The HOC 2020-2021 campaign is a part of the Penjana stimulus package announced by Prime Minister Muhyiddin Yassin in June. The package aims to mitigate the impact of Covid-19 on the economy.

The initiative offers 100% stamp-duty exemption for the instrument of transfer for any residential home purchase valued at up to RM1 million and a 3% stamp duty for properties priced between more than RM1 million and up to RM2.5 million.

Lee said property transactions might see some improvement in the next two quarters.

“We see some uptick of the loans outstanding for property and cars. Definitely there will be some who will take up loans to buy (these items) due to the low interest rates.”

According to Bank Negara Malaysia’s monthly highlights, household loans grew by 0.5 percentage points to 4.8% in August from 4.3% in July.

BNM said the total loans disbursed remained “steady” despite moderating slightly at RM89.19 billion compared with RM100 billion in July, which was mainly due to loans for the purchase of residential property.

Lee said there is also an uptick in car sales due to the exemption of the sales and service tax.

Sales of new cars grew by 3.2% to 52,800 units in August from 51,148 units a year ago.

The Malaysian Automotive Association attributed the increase in sales in August to passenger vehicles (PVs).

Sales of passenger vehicles increased by 1.7% to 47,591 in August 2020 compared with the 46,802 units sold in the same month last year. – October 7, 2020.