20,912 units in Penang to help people own a house.
I am one of the few people who kept telling everyone that we need a property so that we do not pay rental forever and ever. Do remember yeah, we will always need a place to stay and if we have children, they will need a place to stay.
Fully Paid versus Paying Forever
The property when fully paid could belong to us 30 years later or we could continue to pay until our children could take over and continue paying and it never ends… So, Penangites should be happy with this news from the Penang state government.
Article in edgeprop.my State Housing, Local Government and Town and Country Planning Committee chairman Jagdeep Singh Deo announced that there are 10 housing projects which will be developed in Jelutong, Perai, Ampang Jajar, Juru, Bukit Mertajam, Butterworth and Bandar Cassia and the total units is 20,912.
He said, “With these 10 projects, the total house supply in the state will reach 220,000 units, including low-cost, low-medium and affordable ones by 2030.” He also said that the price of the houses would range from RM42,000 to RM300,000 per unit, depending on the type. Do read the article in full here: Article in edgeprop.my
Prices will rise… even if slowly
My very first home was an apartment called Villa Kejora in Relau, Penang. I bought that property for RM123,000 in 2003. I sold the property 10 years later for RM215,000. That was in 2013. Today, the property is being put up for sale at between RM275,000 to RM299,000 in propertyguru.com Please refer to the image as below. Updated as at 949pm 25th July 2021.
How much has it increased? Simple Calculation.
2003 – RM123,000
2021 – RM275,000
Total increase: RM275,000 – RM123,000 = RM152,000
Total number of years = 18 years
Total increase per year = RM152,000 / 18 years = RM8,444 per year
RM8,444 / RM123000 x 100 = 6.87% per year. NOT BAD AT ALL! 🙂
Happy understanding yeah, even for an apartment of 700 sq ft, we can still enjoy a simple increase of over 6% per annum.
Of course, someone would like to say that we also have to include the maintenance fee… taxes… etc etc and etc. Noted on your comments yeah. I will still buy that apartment and I will still think an increase of over 6% over 18 years is a very good number.
Briefly, it’s a hedge against inflation because if I did not buy that property at RM123,000 I do not think I could have saved extra RM8,444 extra without fail… I think it would have been spent buying things online instead. That’s one fact too. Thank you.
Next suggested article: No inflation, no need to raise interest rates?