8. Taman Kinrara, Puchong
If condominiums are not your cup of tea, don’t worry. Double storey link houses under RM500,000 are not extinct yet. You can still find a rare one in Puchong every now and then.
At RM398,000, it translates to this:
Paying RM1,618 every month for a two-storey landed home of your own, where you don’t have to pay for facilities you don’t even use (read: swimming pool and gym) – is definitely a good buy. You just have to come up with RM56,300 in cash to get it before it goes out of your budget.
9. Subang Andaman, Indah Alam, Shah Alam
When affordability declines as home prices rise, affordable housing moves further into areas that require some of the longest commutes. However, Shah Alam being relatively near to where the jobs usually are (20 minutes to Petaling Jaya, and 25 minutes to Kuala Lumpur) and having to just pay RM390,000 for a 2-bedroom condominium is quite a good deal.
What does that mean to your pocket every month?
Can you contend with paying RM1,586 every month and also fork out RM55,000 in cash? If your answer is yes, you may just be on your way to owning your first home!
10. The Palm Garden, Bandar Baru Klang, Klang
Today’s unaffordable markets are likely to stay unaffordable. Instead of waiting for the property prices in the prime locations to go down (highly unlikely in the near future), it will be wise to purchase properties that are within your budget before even those get too expensive.
A new development means less money spend on renovation and new facilities. The Palm Garden in Klang may not be in your ideal location, but it definitely will fall within the price range of a middle income earner.
Here’s the math to own a unit:
As urbanisation hit the area like a gigantic piling machine, commuting longer and further to work doesn’t seem like such a crazy idea anymore. With just RM1,105 a month, it will not put too much of a financial strain on a person earning RM4,000 a month. Just save up RM38,500 for down payment and other miscellaneous cost and you will be well on your way to owning your first home!
Today’s housing market may be unaffordable for most in the “sandwich class” – sandwiched between the high income earners and the lower income earners – but a collapse in the housing market is nothing to wish for and not worth waiting for.
Although the federal government has been implementing new measures to curb property speculation and to slow down the increase in housing prices, there are still new developments popping up and being swept up by investors within months.
For middle income earners, it is time to realise that things are very different now and you will need to rethink your property buying strategy in order to get in the game before it’s really too late.
* Loan eligibility or debt service ratio (DSR) is based on net income of RM4,000 a month, 35 years loan tenure, and 90% margin of finance.