Unaffordable homes will come true, one day.

Someone forwarded me a message which says the Bank Negara Malaysia (BNM) is saying that the homes in Malaysia is unaffordable. Here’s that article in TheStar.com.my. Homes just aren’t that affordable. I think what BNM is trying to say is that there are more that could be done instead of asking banks to lower their lending criterias. Anyway, to people waiting for RM200,000 landed homes, sorry yeah, this will not happen again. However, if we are talking about flats, especially those cheaper than many of the PR1MA apartments, here are some choices from Mudah.my (As at 31 Oct 2017). Just go to mudah.my and choose Kuala Lumpur followed by entering the keyword of ‘flat.’ I could not answer if these are property that everyone is looking for but many of these are near enough to public transport or to malls or even within just a few km away from KL city centre. Perhaps the only setback would that some of them may not be in their best conditions anymore. Many may even require some extensive renovations. If mudah.my is not your choice, then iproperty.com.my or even propertyguru.com.my would provide more choices as well. To check the actual transacted prices? brickz.my

in many countries, it’s no longer about prices but it’s about choices. There are really no choices that they could afford, even if they wanted to buy one. Australians may earn many times more than us based on currency but this is one latest news about their property affordability. Australia: Housing affordability worsens: Moody’s.  Many Australian cities are in the world’s most liveable cities list but this is one latest article about the actual property ownership. In the world’s most liveable cities, few can afford to buy a home.   The same thing is also happening to British who earns 5.5 times more than us due to currency. One latest article about the affordability of homes? House prices are a clear barrier to young professionals in London who are opting to rent. Closer to home? Here’s what Japan’s housing is to the working population in Tokyo. Japan’s high real estate prices gives investors vertigo. My ex General Manager travels 400km daily to and fro work because he does not want to buy a very small flat within Tokyo. He has a wife and two kids you see.

Malaysia’s property prices are rising even if it has slowed for the past few years. In fact, for some luxury condos, the prices have fallen more. This was also because they rose the most during the booming years. For condos which prices went up slowly, the prices have not moved much.  It’s a challenging time indeed. Perhaps even upwards. One day, most of all these properties would become unaffordable and similar articles like those of the more advanced markets would be common. Today, well there are still choices and the state governments as well as the federal government is pushing for more of these affordable homes. I struggled to buy my first apartment together with my wife after we have worked for a few years. I seriously think it is possible to still do the same. Sacrifices would have to be made though as materialism will eat away the potential savings for a home. Is renting a better option? As of now, it does seem so, with so many owners trying their best to rent out their homes. Competition means lower rental. Enjoy it then if that’s what we think we want.

written on 31 Oct 2017

Next suggested article: Waiting for property bubble to burst?

 

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