Budget .. Property sector .. Global Market ...
EPF withdrawal
With the approval to withdraw money from EPF Account II for purchasing property, would it push the property sector to a higher level? Personally, I believe the demand for property will be higher as the potential buyers will have higher purchasing power by utilizing the money available in their EPF Account II.
2k?
However, the 50% discount for the stamp duty of property with value not more than RM250k is pretty immaterial in my opinion. With reference to the article in local newspaper, the discount represents a total of max 2k and it is only eligible for 1 property each individual. Is 2k that significant to a buyer who can buy a 250k property? I am not able to see the importance and I believe this has no major impact to the property sector.
Higher brokerage fee in 2008
Meanwhile, the min brokerage fee will be RM40 per transaction, starting Jan'08. I have no idea why the gov decided to increase it. Retails investors may be reluctant to pay for the higher brokerage fee where it has a direct impact to the net profit/loss for each investestment/trade.
Global Market
US market market gave up ~250 pts after the release of not impressive payroll data on Friday. China market dropped as well on Friday. Osama video clip may appear on 11 Sept? Will Fed cut the interest rate on 18 Sept? What will be the direction for global stock markets? We can deny that Malaysia market continues to be influenced by the global market at the moment.
The collapse
Personally, I believe the real huge correction will come after next year Beijing Olympic. Meanwhile, I am discovering and learning to join US stock market and options. You may visit optionXpress to look around. US market is more volatile and easier to make money? In the other way, it would be easier to lose money as well.
No Sin Tax
It is the first tax the gov did not raise the sin tax in Budget presentation? hooray for drinkers and smokers ....
4 comments:
opinion on the RM40 brokerage fee
think the positive way... RM40 is a fix rate. the new rate is actually encourages people to buy shares in bigger lots.
Example:
1. If you buy a share with RM 1,000 and you need to pay RM40, your brokerage fee is 4%; much higher than now.
2. If you buy a share with RM 10,000 and you need to pay RM40 only; this means the brokerage fee only 0.4%.
you will only face a higher brokerage fee (compare to the rate today) if your transaction value is below RM6000. The fee is actually lower than now, if you buy a big-value contract.
when people buy something in big amount, they will probably think twice. Then, they will make a more rasional decision (I think). And, I hope that, this will reduce the speculations activities in KLSE and make Malaysia's stock market more healthy.
They cancelled the property gain tax, but enforce you to declare the profit you made in property sale during income tax form submission. What's the point....
They cancel the tax on dividend profit, sounds good but doesn't bring any benefit, because currently we can actually claim it back through year end income tax form submission.
On top of that, they increase the brokerage fee to RM40, which means in general investors have to pay more than before.
A few years back they changed the minimum stock purchase units from 1000 to 100 in order to allow more people to invest in stock market and now they want to charge more on those people.
The collapse:
It's very true. China market is a closed market, manipulated by the government. Currently the PE ratio in China exceeded 50x and people are getting too excited and emotional on the stock market. Of course the government wouldn't want the market to collapse before Olympic.
i think the gov waived the RGPT and do not mean to abolish RGPT. as a result, we still need to file the information but it is not taxable.
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