Inflation Rate In Finland: Myhome Scheme
Malaysia government was implemented Myhome Scheme to all people of Malaysian. As we know, this kind of policy which implement by Malaysia government is to help those first-time homebuyer with low-cost income Malaysian citizen of at least 21 years old. Its look very worthy that in today’s era, owing a house is still the basic aspiration of most people especially those newcomers or fresh graduate who have just entered the working place or society, but wages can’t keep up with the rising cost of living. It is a proud owner of some real estate, for many people owing a house is just a dream. This policy is helpful for Malaysian citizen to buy their first house, but people always think about the present benefits but didn’t think about the future planning especially in the inflation period.
The disadvantages of this policy in an inflation is Myhome unit cannot be rented out within the moratorium period of 10 years and also the purchase house cannot be sold or transferred to new owner. If in a housing investment perspective, a house that cannot be rented or sold, it counted as loss investment which mean that the owner of Myhome unit need to bear all the cost of the house. Besides, there are another choice to pick which a Malaysian citizen for buying this house purpose which is live in the house. Its sound beautiful to a new house and move in to a new house, but in the new house, there have no furniture at all, owner need to use extra money to buy those furniture which is a huge amount for a low-income person especially in an inflation period which the increase overall price level. So, the future planning for buying Myhome unit is very important, if don’t plan well, it can counted as a loss profit.
Malaysia government implemented Malaysia My Second Home (MM2H) programme to Malaysian citizen. The only disadvantages in this policy is the value of the money will decrease if the inflation situation seep running. According to Malaysia My Second Home (MM2H), there is a rule that all customers of the MM2H should be follow which is must to place the fixed deposit until the customers or participants give up the MM2H. This is a disadvantages for people in an inflation period. This is because inflation occur when the money supply is greater than the actual demand of money, resulting the currency depreciation and the price level continues to rise and generally rises during a period time, so if the fixed deposit cannot take it out unless give up MM2H, the value of the fixed deposit after receive the money will be decrease if the inflation period keep running.
Goods and Services Tax (GST) also implemented by the Malaysia government and started this policy on 1 April 2015. The purpose of GST is to replace the sales and services tax which has been used in the country for a long time period and also help government diversify its sources of income but no just relying on income taxes and oil taxes. There’s always advantages and disadvantages to everything, and GST is no exception to this rule. GST brings some disadvantages during inflation, first of all is reduce in purchasing house. GST would add up to 8% of the cost of new house to those buyers, so naturally people will consider about the price of the home since the price of the house is already pricey as it is. It is bad for people who want to buy a new house in the inflation period, because in an inflation period, it will increase the overall price level and the rising of the living cost instead of wages, the demand of the house naturally will be affected and decrease. Furthermore, the main argument to people circulating around GST is that GST is a burden on the public, when the increase the overall price level, they still need to play the goods and services taxes, and the market demand will decrease, many people will not be able to pay for high cost living which it cannot be compared to their income needs.
