By the way, I have little doubts that when we work very hard towards achieving a goal, we will usually be able to achieve it. Or at least pretty near to it. Shoot for the stars, if you do not hit it, at least you hit the clouds. Good enough. Malaysia has a problem every country is facing. We have unsold properties and after a while they become overhang properties. At the same time, we have fellow Malaysians needing homes in convenient locations and at a price which they could afford.
The term affordability can also mean a lower property price as well as a lower monthly expenditure which meant that one has more money to be saved for a downpayment for a home in the near future. The best is of course for the property price to remain stagnant while salaries continue to go higher. The buyer is thus able to buy a property after some time as long as they have been saving diligently for a couple of years.
Article in nst.com.my . Housing and Local Government Minister Zuraida Kamaruddin says that the government is on track to build 1 million homes within 10 years for the B40 by 2028. She says that private developers are willing to build homes priced at less than RM300,000. Currently, 39,864 units of affordable homes have been completed nationwide while another 181,211 units are still under construction. 386,340 units are being planned.
Zuraida said that in order to stop any future mismatches in property being built versus the demand, KPKT is developing a big data system that will provide information based on projected housing demand according to location and price. She said, “The system is expected to be ready by the end of 2020. This data will provide a more accurate analysis of housing planning especially for private developers.” She also mentioned that there are rent to own (RTO) programmes too. More details in the Article in nst.com.my
There’s a reason for the overhang units. There are also reasons why so many people who earn RM6,000 or higher but still unable to even pay for a RM300,000 home too. Thus, all the measures must tackle both. Else, nothing happens and we can stop whatever measures we have which aims at getting people to buy.
When everyone just do not have the money, then we need to focus on giving homes for people to rent instead. Not the best option but a necessity since accommodation accounts for a huge chunk of their monthly salary most of the time. In some countries, the rental alone is already half of the monthly salary. Fortunately, this is not the case in Malaysia because everyone is telling me that it’s now the renter’s market. Happy following.
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