Personal finance 101. Salary from KL. Property from Selangor.
KL pays higher salary than Selangor
As per Department of Statistics, Malaysia, the median salary of someone working in Kuala Lumpur is RM10,549 while the median salary for someone working in Selangor is RM8,210. That means one would earn up to 30% extra per month if one were to work in KL instead of Selangor. Just need to note that this is median and that KL would have more of the high paying jobs because someone working within the KL CBD cannot be having a lower pay than someone working in Kajang. Else, better work in Kajang lah since properties in Kajang is much cheaper than KL.
Property Prices among all the states in Malaysia?
Sometimes, we hear some government official saying that the median home price in Malaysia is just RM330,000. If we live in the Klang Valley, we would be scratching our head because there’s hardly any normal sized homes at RM330,000 price. I define normal sized homes as 950 sq ft or higher. My own definition yeah, not some official definition. As for the minimum size acceptable by most Malaysians, I think it’s probably 450-500 sq ft. This RM330,000 is the median average for ALL the states in Malaysia. Do take a look at the chart below from JPPH, Malaysia.
Highest home price is in…. Putrajaya lah
Putrajaya’s 75th percentile home price is RM1.3 million! Yes, I also wonder why the prices could be so high as well. I think the senior civil officers are staying there. They could definitely afford such property price yeah. Median price for Putrajaya is RM620,000 and this is above the typical affordability range. It’s okay, if we are not working inside or nearby Putrajaya, chances are we are not staying there. Let’s look at somewhere we usually work.
Second highest home price is in Kuala Lumpur
That’s RM495,000 for the median price or if we look at the 75th percentile, then it’s RM878,000. No wonder lah people say why property prices in KL is so expensive as well? Well, refer back to the first image above. People working in KL earn the highest monthly salary yeah. Higher than even the working people in Putrajaya despite home prices in Putrajaya being higher than those in Kuala Lumpur.
Work in KL and stay in Selangor lah
When I think about it, I think most of my friends are doing so. Salary from KL, home within Selangor. Haha. Their office address is in Kuala Lunpur but their home address is Selangor. KL has the highest median salary and Selangor’s median property price is lower than those in Kuala Lumpur. So, this gives us the best of both worlds right. That’s what I am doing currently too. I am also one of those who prefer a bigger home versus a closer distance to the KL city centre. However from the prices, we could see that many are still making KL their favourite place to stay yeah.
Happy working and buying yeah.
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