Must we buy a high-end property to be happy?
Based on the salaries of working professionals in Malaysia, I think any property above RM850,000 is considered a high-end property. Why do I say so? Well T20 household in Malaysia earns roughly RM10,000 per month. (click here to read more) If the T20 household spends 30% of their income for property repayment, they could spend around to RM3,200 per month for a home based on an income of RM9,700 or higher.
If we look at the mortgage calculator, we have the below: (you can do it via www.calculator.com.my)
Why is demand for any property above RM800,000 will NOT be easy to be found?
When it’s a high-end property, the demand can only come from T20 households because it is only this group who would have a higher salary than is required for any property above RM800,000. Now, do ALL T20 households have the down-payment necessary of 10% for this high-end property? Maybe, if they have been saving money every month for a couple of years.
What about another RM150,000 for renovation costs? This is a tough one. Perhaps can aim at properties which are RM800,000 but is already renovated somewhat? That could save the buyer a big chunk of money. However, just with these two questions, we should already realise that when we buy a RM800,000 property, 80% of all the households in Malaysia would not be able to afford that property within these 2 or 3 years.
This is why a home sweet home does not need to depend on the price
I have been to friends’ homes which are very spacious, very big but I do not feel the warmth. I have been to friends’ homes which are small, even the living room is small but I would love to visit them again and again because the home is so full of love, laughter and GOOD FOOD! Haha.
Stop having the idea that if I were to buy a home which is not meeting EVERYONE else’s expectation, then I am not buying a good property. Seriously, even if we bought a RM800,000 home, there are still many hundreds of thousands of people who are staying in pricier homes yeah.
Stay focused on what we really need
These would be some questions to ponder. Example:
- Could I afford it without feeling stressed every month?
- Is it large enough for our liking? Do I really need such a huge space?
- Near enough to places we visit often? It does not need to be to ALL places because we change and things change.
- Have we inspected the property? (if secondary). Have we checked out the developer’s past projects and all the reviews online? (if primary). Have we checked with the management on the owing of maintenance fees? (if auction). Briefly, have we done our home work?
If the answers are all Yes, then I think it’s a good home. Else, keep looking and never settle. It took me 4 months or more to decide on my first home and it took me over 1 month to decide on my second home even though the second home was so attractive. Haha.
Of course, if one could afford, then go for a high-end property!
Last but not least, there are reasons for a property to be considered a high-end property yeah. It really does give that extra emotional appeal yeah. If we are already at that stage, then we could buy one and enjoy staying in one. It’s definitely a home sweet home for many people. Cheers.
Want to read about the latest happening in the high-end condominium market? Here’s one. Article in edgeprop.my
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