If only we have higher salary today, then we can buy property earlier, right?

If only we have higher salary today, then we can buy property earlier, right?

If we earn higher, do we use the money to buy a property?

This might be a tricky question. Should we think higher income makes homes more affordable? Or property affordability drives property demand? In other words, this is like a chicken and egg question. Home prices should come down first so that people can buy or people should earn a higher salary first in order for them to buy?

T20 group to buy the M40 priced properties instead?

For Malaysians in the T20 group, their higher income makes homes more affordable if they target home prices which are more targeted at the M40 and B40 groups. However, if T20 group has to buy more expensive properties, then this T20 group may have to spend more than even the M40 when they buy a property.

More money means more spending lah

More vacations, stay in better hotels, rent better cars when one is traveling would be some of the things I would personally do if I have a higher income. If I have a higher income, I may also think about buying a new car so that I feel more comfortable and I could choose a slightly more expensive car than just the cheaper models in the market. This meant a smaller sized car versus a minimum of Segment C for my choice, when I have more money.

Why not buy property earlier?

There are reasons to buy property but it’s definitely not because of salary. My younger friends bought a property because he believed what I said. My older friends bought a property because he wanted a bigger property. My brother bought a property because the property happened to be very near to my mother’s home. Not a single one of them bought because they have somehow receive a higher salary than the previous year.

More money, more trouble, maybe

We believe we can pay off our credit card expenses very quickly because we have a higher salary. Sorry guys, when we think we could afford because our salary is high, chances are our debt will grow faster than our salary. So, after a few months, we are now many thousands of ringgit in debt even when our salary is slightly higher and we will soon be struggling to pay the credit card interest.

Personal finance is an important knowledge we should have. Stop believing that with more money, more people would buy a property. Start thinking about property investment but never over-stretch financially. We should be doing find after a few years when our salary is higher and our mortgage stayed the same. This is how people who buy property gets rich after some time.

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