Do we know about the household income group Malaysia chart? That latest one? The latest one based on data from Department of Statistics Malaysia. Instead of just B40, M40 and T20, we now have a total of 10 categories with median income as well as the income range. Do not be too carried away with these groupings. The second most important thing is that are we are moving up every year. As for the most important thing, what are we doing about it.
Not everyone is within B40, M40 and T20
Anyway, there are many entrepreneurs who have made it big. Even among my friends, I would love to have their lifestyle too. They are no longer within these categories. Many more would love to become like them. However, there are probably 15 million Malaysians who are within the working population. Yes, these are the people as per above image: Household income group Malaysia. For now, just staying focused on these may be more appropriate. Salary – Savings – Invest. (earlier article on how here)
What’s the property most suitable for these households?
Regardless of how many studies, research and survey done, I still think it’s important to go back to the basics when it comes to buying a property. In my personal opinion, 30% is the maximum number one should use out of the net monthly income for property. RM5,000 salary? Get a property with a maximum repayment of RM1,667. What’s the price of a home one could get with a RM1,667 repayment then? Up to RM420,000 maybe? Image below showing the calculations:
What if I earn more and needing a landed home?
What about someone with a RM8,000 salary then? Well, it’s possible to buy a property with a monthly repayment of up to RM2,400. That’s not a small number if one is willing to buy slightly further away for a landed property. Started homes usually start from RM500,000. Thus, if we could pay up to RM2,400 per month, it can be slightly better than starter homes. Starting right is the main priority. Stop dreaming of a so-called dream home. That dream home will keep changing as we move up the salary range. Our dreams get better and bigger once we earn higher. That’s a fact by the way. Image below:
Do we really need to spend to the max?
Just go to any property listing sites. There are many starter landed homes for RM500,000 if not lower. Of course, it is usually not within Kuala Lumpur. If there are, please do let me know yeah. Let’s go view and write about it. if we chose to buy a RM500,000 property versus a RM630,000 one, then we can make this RM500,000 home much better and yet not spending more. Remember, there’s the renovation fee which everyone would need to budget for as well. Thus, any savings would be good as it may mean a better built-in cabinet, a bigger refrigerator and even a more luxurious sofa too. As for how much do we need to pay for a RM500,000 home:
Decision is about choices and what we do about it
Our life depends on what we do. What we do depends on how much we know what we should do. What we should do also depend a lot on how much we earn, every month. Do more, climb higher in the corporate world but do not spend it all on gadgets. Buying a property will not make you an overnight millionaire, that’s quite certain. However, not buying a property, that will definitely zap away a lot of your wealth and make some home owner you rent from a potential millionaire instead. You pay his mortgage and he enjoys the potential capital appreciation.
No matter which household income group Malaysia you are in, all the best. Keep pushing and never settle. For now, take care.
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