Since my time during secondary school, I have always concerned about buying assets. Malaysian youth who just started working like to buy cars instead of houses because car is a material that others can see. Car price is inversely proportional to its age where house price is proportional to its age. The older the house the more expansive it become. The question is why house price keep increasing and how can the people afford it?
If we compare 20 years ago, people who earn around RM1500 per month can already own a house which the price range is around RM40,000 to RM100,000. Compare to that stat with the current situation where people who earn around RM1500 per month, they definitely can not buy a house. One of the factor is because house that cost RM40,000 20 years ago will cost around RM120,000 to RM200,000 in this era. This show that house price have increase more than 300% in the past 20 years. New regulation from the bank also not favor to the people where the bank will not approved any house loan that is less than RM100,000. Moreover, it is quite difficult to find house that is below RM100,000 unless we could find a desperate seller for a house. If we could find a house that cost less than RM100,000 then the problem is how to collect RM100,000 cash? The third factor that hinder people from people buying a house is the fact that bank only provide 85% loan from the house price and house price average in Klang Valley is around RM400,000. For example if a person want to buy a RM500,000 house, the person need to prepare RM75,000 in cash plus other cost and fee. If a person already have RM75,000 in his bank 20 years ago, he could afford a nice apartment without committed to any house loan that usually bind the person up to 30 years to settle the loan. This development between the house price versus the person income is not in balance. People who earn around RM2800 per month will also struggle to own a house. The weird thing is this issue have been around in the headline for the past several years but why we the people didn't do any appropriate actions compare to the UPSR issue or the Selangor MB issue?
|When will the house price graph going down?|
Today 16 September 2014 is the 51st anniversary for Malaysia as a country that consist the Peninsular and Sabah Sarawak. Our country have a healthy development and we never encounter any major issue such as war or bankruptcy. Changes sometime are good and sometime are bad. If something never be done, I'm afraid that for the next 20 years there will be no Malaysian who can own a house in Malaysia.
Happy Malaysia Day