A reader sent in a simple question of distance versus affordability and expenses. I think this would be a question many would have since there are now more huge integrated developments further away from KL instead of just the current Greater KL plan. Plus the fact that those who would like to buy closer to the city centre would have to either be earning extraordinary income or forget about it. As for myself, I am staying within the 25km radius from KL city centre today. Question as below:
Mr. CC: Should I buy somewhere further from KL area say Nilai or Semenyih if I’m working close to the city? There are rising development in those area but unsure of it’s future development but since the houses selling there are quite affordable but because the travel journey is unfavourable plus with the tolls. Should I travel back and forth just to buy an affordable home?
My opinion: Buying further away needs adjustments in our lifestyle. Starting earlier to beat the morning jams as well as leaving right on time everyday or to have dinner outside before going home. We need to do this everyday. The good thing is, once it becomes a habit, we could hardly feel it. I have many colleagues driving from Klang everyday and when I asked them if it’s far, they replied that in the beginning, it was extremely far. These days, it’s just another normal day.
In terms of potential property price appreciation for these further away areas, do note that the push factor would be the property prices closer to the city. Once some of these hotspots become unbearably expensive, people start looking for alternatives. This is where secondary areas start to become a more realistic choice. The first consideration would definitely be the 15km radius from the city centre. This is where anyone can just arrive within 15 minutes during non-peak hours. Choices are becoming more limited these days (unless we would like to consider secondary choices too) and thus, looking at 25km radius may be more realistic. Semenyih would be another 10 – 15 minutes away. (Image)
Just for fun, calculation for the potential toll as follows:
Assuming toll to be paid is RM20 per working day. That’s RM20 x 22 working days = RM440. On a yearly basis, it’s RM440 x 12 = RM5,280. Assuming we do not change our lifestyle or home for the next 30 years. That’s RM5,280 x 30 years = RM158k. Comparing the price of a condo nearby KLCC versus similar properties further away, the price difference is definitely more than RM158k. Oh yeah, RM158k is over 30 years….. Yes, it’s definitely choices. No such thing as perfect choice, only the best choice based on what we want, what we could and what we can accept. Happy selecting!
written on 17 Oct 2016
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