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Showing posts with label Klang Valley. Show all posts
Showing posts with label Klang Valley. Show all posts

Tuesday 30 January 2024

Owning a home beyond reach of most millennials (Poll Inside)

It makes more sense to buy than rent, says an academic who was involved in the Universiti Putra Malaysia study. — Photos: Filepic

Public university study shows majority prioritise buying cars, prefer to rent homes near workplace

FINANCIAL reasons continue to keep young Malaysians living in major cities from realising their dream of owning a home.

Among the younger generation, the major concern is high property prices that are many times more than their annual household income.

It is not easy for those with no fixed income or low salary to secure a housing loan.

While money issues are already weighing heavily on people’s minds, the younger generation’s inability to afford a home is exacerbated by the high cost of living.

Affordable housing is often beyond the reach of millennials in Kuala Lumpur, Selangor and Putrajaya.Affordable housing is often beyond the reach of millennials in Kuala Lumpur, Selangor and Putrajaya.

Housing affordability remains a conundrum in Malaysia despite various initiatives taken by the government through the National Affordable Housing Policy.

The initiative aims to ensure housing affordability is handled in a holistic manner.

A study shows that those aged between 25 and 45 seem to be delaying the purchase of their first home.

Financial commitments

Universiti Putra Malaysia (UPM) Human Ecology Faculty lecturer Dr Mohammad Mujaheed Hassan said the study had shown that other factors also contributed to the issue.

“The Variations in Preferences of the Young Generation in Klang Valley Towards Housing Property Demand” study conducted by UPM in mid-2022 found that the younger generation had high financial commitments.

A total of 2,523 respondents aged 25 to 45 in Kuala Lumpur, Selangor and Putrajaya with individual monthly income of between RM4,360 and RM9,620 were interviewed.

The study aimed to identify this group’s financial level, in terms of their ability to save and invest as well as their financial liabilities.

Mohammad Mujaheed, who was involved in the research, said out of the total, 1,697 respondents or 67.3% were committed to monthly vehicle hire purchase instalments of between RM800 and RM1,200.

“For them, owning a car is a benchmark of their success in life,” he told Bernama.

Some millenials say it is cheaper to rent homes than buy. — BernamaSome millenials say it is cheaper to rent homes than buy. — Bernama

“Ironically, some of them take public transport to work and leave their cars at home.”

Mohammad Mujaheed, who is with the Social and Development Sciences Department, said the study also showed that 1,833 respondents or 72.7% had credit card commitments with at least two banks.

“To the younger generation, having a credit card is an alternative for them to have regular access to credit and as a cash advance.

“The study also reveals that 843 (33.4%) of respondents were renting a home for between RM500 and RM1,200 a month,” he said, adding that 73.9% of respondents had no disposable income for savings or investment.

Option image
POLL: Do you prioritise buying a car or owning a home?

Mohammad Mujaheed said based on the study, the younger generation preferred to rent due to several factors, although they could afford to buy their own home based on the monthly rental they had been paying for years.

“They argue that the location of the house that they can afford to pay for is far from their workplace.

“They have to factor in other payments linked to owning a property such as assessment tax and maintenance fees and higher fuel consumption that will further add to their financial burden.

Many people surveyed say affordable housing is too far from their workplaces.Many people surveyed say affordable housing is too far from their workplaces.

“By renting, they only have to fork out for rent and utility bills.

“They say their rented houses are only for rest and sleep.

“Much of the time is spent outside their house and at work.”

At the same time, some millennials are tied to personal loans, among others to fund their wedding, while others are caught in the credit card debt trap.

This situation is not surprising as the Credit Counselling and Debt Management Agency (AKPK) had earlier highlighted that the majority cases of youths declared bankrupt in the country was due to credit card debt.

Worrying trend

Mohammad Mujaheed said the tendency for young adults to not prioritise home ownership had caused many to be saddled with longstanding debt, preventing them from buying a house despite getting older.

“The situation is rather serious and has contributed to many being blacklisted by financial agencies, living in debt, declared bankrupt and encountering problems such as stress and borrowing from illegal moneylenders or ‘ah long’,” he said.

He said while it was not wrong for the younger generation to own a vehicle or apply for personal loan, they should give priority to home ownership as it was an asset.

Vehicles, meanwhile, depreciate in value annually.

“The value of a house will appreciate every year.

Millennials may opt to purchase a car as a benchmark of their success.Millennials may opt to purchase a car as a benchmark of their success.

“By paying monthly rental, it appears that we are ‘helping’ the owner to settle his housing loan repayment,” said Mohammad Mujaheed.

He said if the problem persisted, young adults would continue to delay purchase of their home to meet other needs.

It is feared that they will not be able to own their own house in future given the consistent upward trajectory in residential property prices.

“The younger generation should no longer adopt a wait-and-see attitude.

“The longer they wait, the higher the price, given that the growth of household income is not at par with the increase in house prices.

Youths who do not pay their credit card bills on time will find it tougher to get a housing loan.Youths who do not pay their credit card bills on time will find it tougher to get a housing loan.

What was worrying, he added, was this group ending up “homeless” when they reached their golden years.

On the possibility that this group would “share” a home with their parents or other family members, Mohammad Mujaheed said this could only be realised if their parents owned property.

“Otherwise, a family will be faced with the possibility of being homeless or continue to rent permanently (from one generation to the next) as they do not own any property.”

He said the younger generation should not use high property prices as an excuse for not buying a house as there were affordable home schemes offered by the federal and state government such as Rumah Selangorku, Federal Territory Affordable Housing Programme and Malaysia Civil Servants Housing Programme.

Affordability gap

Universiti Teknologi Mara (UiTM) Seri Iskandar senior lecturer Dr Azizul Azli said the huge gap between income levels and house prices had prevented the younger generation from owning a house.

“For example, average annual salary increments are about 2% while property values increase between 6% and 8% each year.

“Imagine, in only two years, property prices would have risen by 12% and salaries increased by 4%.

“Despite price fluctuations in the post-pandemic property market, prospective buyers are still not able to ‘catch up’ as their income is still at minimum level,” he said.

As an example, he said the average starting salary for fresh university graduates was around RM2,500 a month.

If they bought a house worth RM300,000, their monthly financial commitment would be about RM1,500, he said, adding that this was not viable with the escalating cost of living factored in.

An academic says double-storey houses are popular with developers as they take up less land.An academic says double-storey houses are popular with developers as they take up less land.

Azizul, who is with UiTM’s Architecture, Planning and Survey Faculty, urged the government to play a more effective role in helping youths own their first home at a younger age.

Among others, incentives should be given to developers to build more landed property so that units can be sold at lower prices.

“We still have an abundance of land that developers can build on,” he said.

“However, they (developers) prefer double-storey houses as this involves smaller built-up areas.”

Azizul said Indonesia had undertaken measures to build affordable landed homes for the younger generation.

“Various house sizes at affordable prices are offered, and if converted to our currency, prices are below RM100,000.”

He said the current practice of allowing developers to provide basic amenities at housing areas had contributed to the hike in house prices.

To reduce costs, he said the government could take over construction of such facilities in addition to providing subsidies for building materials.

“At the same time, there is also a need to reduce red tape as this has also contributed to higher construction costs, causing developers to inflate their selling prices,” he added.

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Related posts:

Young adults in developed countries rent, we buy for good


While young adults all over the world are renting homes, Malaysias prefer to own homes as soon as they get their first pay cheque.

Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.


Saturday 20 April 2019

Do you earn enough to sustain your lifestyle?


DO you know how much you need to sustain your lifestyle every month? Are you living within your budget or stretching to make ends meet?

We can now gain insights with the unveiling of Belanjawanku, an Expenditure Guide for Malaysian Individuals and Families, launched by the Employees Provident Fund (EPF) in early March.

The guide offers an idea of the living costs for respective household categories. It encompasses the expenditure on basic needs and involvement in society for a reasonable standard of living in the Klang Valley.

According to Belanjawanku, a married couple with two children spend about RM6,620 per month on food, transport, housing, childcare, utilities, healthcare, personal care, annual expenses, savings, social participation and discretionary expenses.

When I read this guide together with the income statistics published by the Statistics Department, it reveals that a vast majority of Malaysians can’t afford to live in the Klang Valley.

Based on the statistics, the median household income for Malaysian households in 2016 is RM5,228, far below the RM6,620 required for a family with two children to stay in the Klang Valley.

If we take a closer look, the median income of M40 group (Middle 40%) is RM6,275, which means five out of 10 households in this category received RM6,275 per month or less. This indicates that over 60% (40% from B40 households and half of the M40 households) of Malaysian households (if they have two children) can’t afford to stay in the Klang Valley.

What went wrong in the process? Why are many households having challenges to meet the required budget?

According to Belanjawanku, a married couple with two children spent the majority of their income on food (RM1,550), followed by childcare (RM1,150) and transport (RM1,040), then only on housing (RM870) and other items.

Based on the research, even if housing was provided for free, a household of four would still need RM5,750 to sustain their lifestyle. Therefore, the common perception that only housing is expensive is not right. It is not that housing is expensive, but that everything is expensive because of inflation over the years! The value of our currency has fallen due to global money printing measures over the past decade.

Belanjawanku compiles only core living expenses without luxury items or excessive spending. It also doesn’t include long-term financial planning tools such as funds for education or investments. If the majority of Malaysian households have challenges in meeting the existing expenses listed in the guide, it poses a serious concern on their future financial prospects.

The underlying factor of this challenge is the low household income earned by Malaysians. The previous government failed to move us to a high income nation as they had promised, and more families are stretching to make ends meet now. It may lead to serious financial problems in the future.

If median household incomes don’t increase, the B40 (Bottom 40%) and half of the M40 will always struggle even if housing is free, assuming that they aspire to have two children and to live in the Klang Valley.

According to Transparency International Malaysia, corruption had cost our country about 4% of its gross domestic product (GDP) value each year since 2013. Added together, this amounts to a high figure of some RM212.3bil since 2013. For 2017 alone, that figure was a whopping RM46.9bil!

Imagine what we can do with these monies if there was no leakage in the system? The previous government should have channeled the money to stimulate economic growth and increase the income of the rakyat.

Going forward, I am optimistic that the new government, with its promise of a clean and transparent government, can finally fix the leakage and focus on generating a higher income level for all Malaysian households.

Financial independence is a key factor in the overall well being of the rakyat. We need to increase household incomes to a level where families can meet their basic needs and embark on long-term financial planning, to elevate their quality of life.

Then, and only then, will housing and other living expenses finally become affordable.

By Food for thought By Alan Tong

Datuk Alan Tong has over 50 years of experience in property development. He is the group chairman of Bukit Kiara Properties. For feedback, email bkp@bukitkiara.com


 
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For many young Malaysians, the road to owning a home is riddled with speed bumps. — Pexels 

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Struggling and frustrated: Most aid goes to the B40, leaving the M40 feeling adrift and on their own

Housing affordability is an income issue, what's with the fuss?


Moving forward with affordable housing


Monday 7 April 2014

The money in golf clubs land in the Klang Valley, Malaysia


Price of residential development land nearby chart
Golf course land has been in the spotlight after three golf clubs became the target of developers in Klang Valley.

The three are Kelab Rahman Putra Malaysia, Sultan Salahuddin Abdul Aziz Shah (KGSSAAS) Golf Course and Perangsang Templer Golf Club in Templer Park.

The last to join the fray is Perfect Eagle Development Sdn Bhd, which has submitted a proposal to acquire 279 acres of land, which Kelab Rahman Putra Malaysia sits on, for a cash consideration of RM296mil.

Perfect Eagle, which made the offer two weeks ago, plans to convert a portion of the golf course for property development.

The deal is still pending approval from its members. But if the offer is accepted by the members, each of the 4,230 members would receive RM70,000 cash each, which is not too bad considering that the golf club membership cost less than RM15,000 when it was started in the mid-1990s.

In 2012, Kelab Rahman Putra also received an offer to buy the club for RM130mil, however it was rejected by the members.

Golf land deals

As for KGSSAAS, the owner - Great Doctrine (M) Sdn Bhd - sold a portion of its golf course - 34.6ha - to Mah Sing Group Bhd last week for RM327.4mil.

To facilitate the deal, KGSSAAS, which currently has a 27-hole golf course facility, would shrink the size of the course to an 18-hole course.

Mah Sing expects the project to have a gross development value (GDV) of RM2.5bil.

In February, Perangsang Templer Golf Club in Templer Park was reportedly to be closed down to make way for a high-end residential and commercial property project that could worth RM1.24bil.

SP Setia Bhd has signed a joint-venture deal with Kumpulan Perangsang Selangor Bhd (KPS).

KPS, via its unit Cash Band (M) Bhd, is the owner of three parcels of 194.65 acres of leasehold land. SP Setia’s role under the agreement is to develop the land as well as to market and sell the commercial and residential units.

It has been reported that KPS had done a study to evaluate the redevelopment potential of the 18-hole golf course, and said that it was “not-fully optimised in its current form and utilisation”.

It notes that the conversion of the land to mixed development status could unlock the true value of the land.
There is no doubting that golf courses in the Klang Valley are highly attractive to developers.

A quick check indicates that there are over 15 golf courses scattered around Klang Valley, and Petaling Jaya alone has almost six golf courses.

With land scarcity in the Klang Valley and the rising demand for homes, golf land has become hot property.

“As land become scarcer, golf land may become more viable for development as they are generally well located.

“In fact, much of golf land are located in matured locations with established amenities,” says Mah Sing group managing director Tan Sri Leong Hoy Kum.

Nonetheless, he notes that the recent golf land acquisitions was mainly due to the location, land price, payment terms and development potential.

“We do not set out to acquire golf land per se, but we continuously look at landbanks that fit our business model,” he adds.

Traditionally, golf courses in Malaysia are surrounded by lavish bungalow units in a pristine neighborhood. Homeowners would enjoy a tranquil park built within the area, giving them a peaceful environment away from the concrete jungle.

Experts say developers that are targeting golf clubs are actually looking for landbanks for future high-end development.

“Most of the golf courses in the Klang Valley were planned to be part of a comprehensive development with luxury housing and sometimes, commercial components like resort hotel and office park.

“But as time goes by when the development matures and the land and house prices increase in the area, it makes better sense financially for the golf course land to be used for higher value developments such as luxury housing,” says Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng.

He says the factors that drive property developers to buy over golf courses are location, matured neighbourhood, nice environment and large land size.

When asked if there would be more golf land to be gobbled by property developers, he says it would depend on the property market, land prices, consumer preferences and development trends.

An analyst says that the scenario of having golf land being scrapped to make way for property development is not only unique in Malaysia, but also seen in other countries such as in the United States, UK and Singapore.

“It’s a natural evolution as long as the state government approves it,” he says.

“The shortage of suitable development land in the city area has resulted in developers targeting other types of land, and this includes golf courses,” he adds.

He says acquiring golf land at the moment is timely, considering the maturity of the Klang Valley area.

“It would be the right time to develop such land especially if the golf courses are underutilised,” an analyst says.

While Mah Sing scores a hole-in-one with the acquisition of a parcel of land in KGSSAAS, some developers may not find it easy to acquire golf courses.

A major obstacle is getting approval from members.

One of the reasons why Mah Sing was successful with the KGSSAAS deal was because the transaction did not need the approval of members.

That the land was up for sale was also known in the market.

KGSSAAS, located near Stadium Shah Alam’s Section 13, was sold for RM88 per sq ft to Mah Sing.

For Perfect Eagle Development, the acquisition could be tricky, as the consent of members is required.

When contacted, a member of Kelab Rahman Putra Malaysia says he would prefer to reject any offer to buy the club land due to the embedded value of the land.

While golf clubs have attracted interest of late, it is not a new phenomenon.

In 2011, Dijaya Corp, now known as Tropicana Corp Bhd, bought over the Japanese-owned Kajang Hill Golf Country Club for a reported RM228mil for 80.33ha freehold land.

The land was then be transformed into Tropicana Heights Kajang, a mixed development project, comprising landed homes, condominiums, apartments, and shop offices with an expected gross development value of RM2bil.

One of the pioneers in developing golf courses is YTL Land & Development Bhd.

The group had scrapped what used to be a nine-hole golf course in Sentul, and converted it into a private gated park for residents in the Sentul West development.

The park, also known as Sentul Park, was formerly the 85-year-old Sentul Raya Golf Club.

In 2001, YTL acquired Taiping Consolidated Sdn Bhd and inherited the whole Sentul Raya project, which spanned over 294 acres of land, including the golf course.

Contributed by  Intan Farhana Zainul The Star/Asia News Network

Related story:

Selangor Turf Club saga

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Friday 7 September 2012

Smartphone Ascend P1 unveiled by Huawei Technologies

KUALA LUMPUR: With smartphones becoming an indispensable tool for staying connected on the social media networks, China-based Huawei Technologies has launched an affordable yet feature-rich model.

Many queued up as early as 6.30am to get their hands on the Ascend P1 at the introductory price of RM999 during its launch in KL Hilton yesterday.

Ong Boon Lin, 35, who was first in line, said he bought the phone for his wife as the larger screen would make it better for “reading news and books”.

“The Ascend P1 is a fast smartphone with a camera for capturing and sharing contents while on the move,” said Huawei country director for consumer business group Wong Wey Hwa.

A model with the Ascend P1 smartphone at the launch. A model with the Ascend P1 smartphone at the launch.

The phone has a large 4.3-inch screen, making it easy to browse the web, view images and watch high-definition videos. It also comes with 4GB of storage to store content, applications and games.

“Huawei has been working behind the scenes for many years by supplying infrastructure for network service providers,” said Wong. “We are now trying to grow our brand using online and social media with the Ascend P1.”

The smartphone, which is available currently in the Klang Valley, is expected to hit shelves nationwide in the coming weeks. The introductory price is valid until Malaysia Day.

Meanwhile, Bernama reported Huawei country director for consumer business group Wong Wey Hwa as saying that the company was aiming for double-digit sales growth in the Malaysian market.

“Last year, we did US$40mil sales in Malaysia for all our products,” he said, adding that the smartphone was expected to contribute 20% to 30% of the targeted double-digit sales growth.

Wong also announced the expansion of Huawei's device business under a new distribution partnership with ECS ICT Bhd via its wholly-owned subsidiary, ECS Astar Sdn Bhd, which would open up access to over 3,000 resellers nationwide.

“Through our formal partnership with ECS in Malaysia, we are able to expand our product reach and offer more accessibility of our devices to everyone looking for value-added mobile connectivity,” he said.

Wong said Ascend P1 would be available at participating ECS retailers in the Klang Valley and in other places in the next few weeks.

For a review of the Ascend P1, check out TechCentral.my.

By CHONG JINN XIUNG starbiz@thestar.com.my  

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Wednesday 5 September 2012

Malaysian property market remains resilient: housing robust but commerical glutted

Developers optimistic of H2 but not sure about 2013

PETALING JAYA: The Real Estate and Housing Developers' Association Malaysia (Rehda) expects the housing and property market to plateau in the second half of 2012, but will remain resilient.

According to a survey Rehda conducted, property developers are optimistic of the second half and more respondents plan to launch projects.

The survey is based on a sample size of 180 companies, out of the 1,003 Rehda members.
Property developers are less optimistic of the first half of 2013 due to certain factors, including the outcomes of the 13th general elections and Budget 2013. The current global economic situation also contributes some uncertainty.

The results of the survey show that the property market in the first half of this year is still driven by the domestic market, despite beliefs that foreigners are buying more local properties. Last year, only 2% of total properties transacted were from foreigners.

Rehda president Datuk Seri Michael Yam said the Government should review building less low-cost homes. In 2011, 1.04 million units out if the total 4.51 million total residential stock were low-cost homes.

 
“As Malaysia moves towards striving to reach developed nation status by 2020, the Government should review if there is a need for so many low-cost homes,” Yam said.

Rehda national treasurer N.K. Tong said: “Perhaps the Government should consider implementing a limitation to low-cost homes like what Singapore has done with the HDB (Housing and Development Board) flats.”

HDB flat owners-to-be are not allowed to own any other properties in Singapore, or in any other part of the world. Tong said if such a plan was implemented in Malaysia, there would be less abuse of these properties, unfairness caused to developers and to a larger extent the people.

“I'm more concerned with the supply factor. It is moving downwards due to the shortage of prime land and rising building costs. Come 2015, if the Government is serious about implementing the build-and-sell plan, the supply (of houses) will reduce by about 80%,” Rehda past president Datuk Ng Seing Liong said.

His main concern if the plan was implemented was that property prices would continue to trend upwards due to the supply and demand equilibrium.

“In terms of the property sector, we must look at a long-term scenario,” he said in regards to future plan implementations.

Rehda public relations, communications and publication committee member Che King Tow said the Government usually owned the best-located properties.

He said it would benefit the public if the Government could consider releasing its land in high-density areas such as Jalan Duta and Selangor Golf Course in the upcoming budget.

“Those are suitable prime land for mass housing. They can cut down on ownership of cars, and use public transport instead,” he said.

Yam also urged the Government to establish an automatic-release mechanism to enable the release of unsold bumiputera units. Although Rehda has not complained about allocating a portion for bumiputera buyers, the unsold properties are affecting the developers.

“More projects are having unreleased unsold bumiputera lots which impact the developer's cash flow. An auto-release mechanism should be put in place to automatically release the unsold properties after a stipulated time to prevent this,” he said.

By WONG WEI-SHEN weishen.wong@thestar.com.my

Housing market robust but commercial property glutted


Malaysia's residential property sector will continue its upward momentum thanks to ample supply and demand as well as a change in the demographic structure, according to figures from the National Property Information Centre (Napic).

Last year, 269,789 residential deals valued at RM61.83 billion were recorded, the largest in the past five years.

Napic's statistics also showed that demand for units priced below RM150,000 was strong, accounting for 145,785 deals, or 54 percent of all the residential transactions for 2011. Moreover, this is an increase of 12.6 percent compared to the previous year's 129,441 transactions.

"On a similar upward trend, the demand for high-end units priced above RM500,000 increased gradually to 21,905 transactions from the 16,782 transactions recorded in 2010," said the Napic report, adding that the Malaysian All House Price Index soared to 154.6 points from 140.7 points in 2010.

"This was (also) attributed to the increase in affordability level and supported by the ease in borrowing and attractive loan packages offered by the financial institutions," commented Datuk Ng Seng Liong, Past President of Real Estate and Housing Developer's Association of Malaysia (REHDA).

However, there are concerns that Klang Valley's commercial property sector is facing a supply glut, said Dr Ernest Cheong, Principle of Ernest Cheong PTL Sdn Bhd. He believed that the problem can be solved by creating additional demand or stopping construction of commercial property.

La-Brooy, Chief Executive Officer at Axis REIT Managers Bhd, concurs. He explained that rental and occupancy rates will be pressured later this year because as much as five million sq ft of office space are scheduled for completion for the remainder of 2012.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.propertyguru.com.my today.

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Our cars are costing us our homes!

Saturday 14 July 2012

Our cars are costing us our homes!

WHEN I first started my job as an architect in the 1960s, I was on a three-year contract with a monthly salary of RM628. I bought my first car, a Peugeot which cost RM7,724, equivalent to approximately one year of my salary. The car became my reliable companion for 14 years. Those were the good old days, when a car could be bought with just one year of a fresh graduate's salary.

Circumstances have since changed. Today, for a fresh graduate to own a car in Malaysia, it will easily cost him four years of his salary to purchase a foreign car, and even a local car costs around two years of his salary. If we take into consideration his living expenses and other commitments, it may take him even longer to settle his car loan. Hence, it has left him with very little option but to take the maximum car loan financing tenure of nine years.

In the table illustration below, a fresh graduate in the Washington D.C. earning about RM11,000 (about US$3,500) per month can easily buy a Japanese Honda Civic or Toyota Corolla worth RM50,000 as it is only 0.4 times of his yearly salary.

On the other hand, a fresh graduate in Malaysia earning about RM2,500 per month needs to pay RM120,000 if he would like to buy the same type of car. It costs him four times his gross yearly salary. This ratio is 10 times higher than his US counterpart.

For youths in Malaysia, buying a car is more expensive both in real terms, and in terms of debt-to-income ratio. In reality, it means they have to either purchase a car with lower price tag or commit to a longer term loan to own a car, which cost them the opportunity of owning a home.

This situation requires our youth to choose between buying a car or a house first, and many have committed to own a car first, considering our public transportation system is still in the process of being improved.

Many fresh graduates in Malaysia who start to serve their car loan tend to delay their plan of purchasing a home.

Unfortunately by the time they can afford to purchase a home, be it three, five or nine years later, the price of a property would have escalated due to among other things, inflation, higher construction cost and higher land prices.

While it may be safe to say that their salary would also increase, generally speaking the increment may not aligned to the rate of inflation. In most cases, owning a home will be a huge debt lasting 30 to 40 years of housing loan repayment.

What can be done differently to change the circumstances? Is there a better way for them to financially plan their future? These are questions that Malaysian youths ought to consider before purchasing any big-ticket items.

Let's look at the table again. It also lists the median price for three-bedroom apartments in the suburbs of these cities. The median price of an apartment in the Klang Valley is around RM300,000, equivalent to 10-year gross income of our fresh graduates. The affordability level is more favourable compared to other Asian countries, such as Indonesia and Thailand. The prices of same size apartments in Jakarta and Bangkok range from RM350,000 to RM400,000, and costing their fresh graduates 13 to 18 years of gross yearly income to purchase a house.

Therefore, when it comes to the question of home affordability in Malaysia, we are blessed compared to our regional peers.

However, there are many factors that contribute to the challenge for our youths to own a house. Two primary factors are the additional financial commitment of purchasing a car, and the relatively lower income level in our country compared to our Western counterparts.

When fresh graduates spend a substantial amount of their salary paying for a car, they are left with little savings to own a house, and their house affordability level decreases over the years as prices rise due to inflation.

Clearly the income level of our graduates has to rise, to enable better quality of living and higher affordability level, which is the current government's focus to make Malaysia a high income nation by 2020.

Perhaps it is also time to re-look at our national car policy and how it has affected the house affordability level in Malaysia. From the numbers above, it is clear that our cars are costing us our homes.

Food for thought  By DATUK ALAN TONG

> FIABCI Asia Pacific chairman Datuk Alan Tong has over 50 years of experience in property development. He was FIABCI World president in 2005/06 and was named Property Man of The Year 2010. He is also the group chairman of Bukit Kiara Properties. (email at feedback@bukitkiara.com) 

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Saturday 7 July 2012

Be Alert and Vigilance to Stay Safe!

Smash-grab victim takes to the Internet to spread message of vigilance

PETALING JAYA: A vehicle smash-and-grab victim has set up a website called Be Alert Stay Safe to spread the message of vigilance.

Crime Scene

 The website, www.bealertstaysafe.tumblr.com, features stories from victims as well as those who witness similar incidents.

 Ling (who only wants to be known by her first name) said: “I'm so tired of people just talking about it. I'm very angry at what's happening and Malaysians need to stop talking and take action.”

She had lost her laptop and six months' worth of dissertation research in an instant when the assailants smashed her car during a traffic jam.

In an interview recently, Ling said her traumatic experience was worsened by the “nonchalant attitude” of the motorists around her, who did not bother to get out of their car despite witnessing the incident.

Venusbuzz.comAnother woman who has taken to the Internet to spread awareness is Anna Chew, whose women's e-magazine (www.venusbuzz.com) runs an awareness campaign called the CARing project.


Besides featuring articles on self-protection tips, the website also has a “car park rating system” where people can rate the safety of shopping mall car parks in the Klang Valley.

The ratings are based on 10 questions, including whether there were CCTVs, active security guard patrolling, buggy services and panic buttons installed.

Chew said reports would be compiled based on the ratings received and handed over to each shopping mall's management.

“We hope the respective managements will take this seriously and not implement superficial services just to make themselves look good,” she stressed, adding that women must be proactive.

When contacted, Malaysian Association for Shopping and High-Rise Complex Management general manager Evelyn Lo said they would be having an open dialogue with Bukit Aman next Friday.

“We will be discussing a variety of security issues and we have invited all the shopping malls,” she said, urging all mall visitors to remain alert of their surroundings despite existing security systems.

Mid Valley Megamall public relations assistant manager Stephanie Tan said security had been beefed up in the mall's car park after a recent assault on a female shopper there.

She said the mall had increased the number of panic buttons, adding that these were prominently displayed on black and red checkered pillars marked with a “HELP” sign.

“We also have escort services for which shoppers can request from the information counter, car park lobby security booths or our hotline,” she said.

By ISABELLE LAI isabellelai@thestar.com.my