122,000 homeless every night is a reminder that everyone needs a shelter

122,000 homeless every night is a reminder that everyone needs a shelter

Parents’ advice then and my advice today

Study hard, get a good job and earn a good pay and then buy your own home was an advice by my parents when I was younger. I think that’s a very good advice and I bought my first property when I was 26 years old. That’s like 21 years ago. Small 730 sq ft apartment it was (bought at RM123,000 and sold at RM225,000 many years later) and that was the time everything started for me in my property investment journey.

Today, I have reminded my two young children even though they are just 9 and 11 years old today. I reminded them again and again that without a home, then they have nowhere to stay and they cannot think they will stay with me forever. Of course if they love to stay with me even after they have grown up, I would like it but I don’t think they will want it. 🙂 So, better ensure they have the right mindset since young. Why do I say owning a home is critical?

Article in bbc.com This isn’t the retirement that Mary (not her real name) had dreamed of. The former midwife spent years living on a cattle station with her husband on the north-western edge of Australia.

Now, though, the frail 71-year-old spends most of her days and nights in her battered car. Her current view is the public toilet block of a Perth shopping centre.

She is one of the roughly 122,000 people who are homeless in Australia on any given night, according to data from the country’s bureau of statistics.

A recent government report says that 40% of renters on low income are now at risk of joining that cohort.

That’s what happened to Mary. Pushed out of her flat last year when her landlord opted to lease it for short-term stays, she couldn’t find anywhere affordable on her state pension.

In recent years, record house prices, underinvestment in social housing, a general shortage of homes and drastically climbing rents, have left much of the nation’s growing population struggling to find a place to live.

Please do read the long article with a lot more details and stories. Article in bbc.com

Is the house price in Malaysia increasing a lot?

Actually, not really. A small increase every other year has been the case since 2014 I think. In fact, average transacted price even dropped in Q1 2024. These are the two latest articles:

Yes, property prices have dropped.

Property Price dropped in Q1 2024!

Below is the chart showing that it has indeed dropped.

Is there a shortage in housing?

The answer is a firm, no. Why do I say so? Just go to any property listing site and search for properties below RM300,000 and you will see lah. Are these properties loved by everyone? Well, not everyone because some will prefer newer ones, some will prefer ‘higher end’ ones, some will prefer closer to the city centre ones etc… Basically, what they want is not what they could afford, somehow. So, they will just keep renting. Please note that in some countries, you will find VERY FEW of listings in the affordable category.

Is the rental going up in Malaysia by leaps and bounds?

In some country, they want to limit the rental increase. Here’s that country which is planning to do so.

Maximum Rental is 5 percent only BUT…

Latest scenario in Malaysia? People still think renting is cheaper than buying. So, I think renting is still affordable lah. Just need to remember that rental will always slowly inch upwards over the years. Sudden increase may not happen but every year 2 percent? 10 years later and we will realise why that home owner may now be having a positive yield and will NOT sell his / her property at a lower price.

Here’s that earlier article: Rental does not stay the same every year

Learning that everyone needs a shelter, whether owning or renting one

When we own a unit, even if it’s not the newest, latest, nicest property, it’s still a shelter. Sometimes when we are much older than today, that may just be something we need. If we do not think and plan for it today, then when we reach that day in the future, it could be too late. Some will say that no need to worry, high-rise units’ price will always stay almost the same. To these people, I shall wish you all the best. For your sake, I would also wish that you are right.

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