Have you achieved high income status versus the world?

Have you achieved high income status versus the world?

The definition of “High-income countries are those with a GNI per capita of more than $14,005 in 2023” Source: ourworldindata.org. Thus, if we currently earn RM61,000 per higher per year, we are considered as having an income which is high income versus the world today. While this does not seem to be a lot but the truth is, there are many countries with far lower per capita income yeah. As for whether we could become a millionaire, well, most millionaires become one through owning a property. Perhaps you can start the journey too.

Article in nst.com.my Organisation for Economic Cooperation and Development (OECD) Economics Department director Dr Luiz de Mello said the economy has achieved an impressive average yearly growth of over six per cent since the 1960s. 

He added that Malaysia has been ahead of regional peers in terms of per capita incomes and has been able to consolidate this lead. 

Luiz said while incomes were only one-third of the World Bank’s threshold for high-income countries in 1989, they are set to surpass that threshold by 2028.

“The economy has shown resilience in the face of shocks, including the pandemic, supply chain bottlenecks, and the economic implications of Russia’s war of aggression against Ukraine.

“Growth is projected to reach 4.9 per cent in 2024 and then 4.7 per cent in 2025.  Do read the full article here: Article in nst.com.my

RM61,000 is RM5,000 per month, can buy what property?

Assuming the person earns RM5,000 per month and allocates a maximum of 40 percent of the income for housing, then it’s RM2,000 per month. With RM2,000 per month, the person can buy a property of a maximum price of RM485,314. I think this is easily a 1,000 sq ft condo not in some prime area or could even be a small landed double storey terrace home too. Probably in Rawang but within some townships lah. Still okay yeah.

If we earn AUD5,000 per month in Melbourne, probably it’s only possible to rent yeah. It’s the same as earning US$5,000 in Los Angeles, USA too. Renting is a more realistic option. So, I am grateful that if I earn just RM5,000 per month and I managed to save enough downpayment, I would still stay in a decent place.

Happy understanding and remember to buy a property if we could and if we can. Time will tell if we also become like LA or Melbourne. We need to earn more if we like to purchase a home there.

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