{"id":33489,"date":"2018-03-05T10:00:18","date_gmt":"2018-03-05T02:00:18","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=33489"},"modified":"2021-08-27T18:26:10","modified_gmt":"2021-08-27T10:26:10","slug":"update-property-criteria","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/update-property-criteria","title":{"rendered":"Update Your Property Buying Criteria For 2018"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Although the property market is predicted to be stagnant this year<\/a>, the fact remains that real estate in centralised locations are still out of reach for the average income earner.<\/p>\n

The inability to afford housing was further highlighted in a 2015 Khazanah report titled \u2018Making Housing Affordable<\/a>\u2019, which labelled properties within KL as \u2018severely unaffordable\u2019 with a house-price-to-income-ratio of 5.4 times (the affordable ratio is 3 times or under)!<\/p>\n

Furthermore, sought-after locations such as Kuala Lumpur city are out of reach for those earning an average income \u2013 which was at RM5,228 in 2016 \u2013 as a mere two-bedroom non-landed unit in Bangsar costs more than a whopping RM1.06 million (based on EdgeProp<\/a> area outlook).<\/p>\n

The only ones who will ever paint the walls of homes in that address are income earners with 50% more than the average employee.<\/p>\n

So, what can an average income earner with RM5,000 afford? To determine this, we calculated the affordability amount to match a debt service ratio (DSR) of less than 60%.<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
Calculations <\/strong><\/center><\/th>
Without debt commitments<\/strong><\/center><\/th>
With debt commitments<\/strong><\/center><\/th>\n<\/tr>\n<\/thead>\n
Age<\/strong><\/center><\/td>
28<\/center><\/td>
28<\/center><\/td>\n<\/tr>\n
Gross income<\/strong><\/center><\/td>
RM5,000<\/center><\/td>
RM5,000<\/center><\/td>\n<\/tr>\n
Monthly net income<\/strong><\/center><\/td>
RM4,306<\/center><\/td>
RM4,306<\/center><\/td>\n<\/tr>\n
Monthly commitments <\/strong><\/center><\/td>
-<\/center><\/td>
RM700 (car loan)<\/center><\/td>\n<\/tr>\n
Property price<\/strong><\/center><\/td>
RM550,000<\/center><\/td>
RM 400,000<\/center><\/td>\n<\/tr>\n
Margin of finance<\/strong><\/center><\/td>
90%<\/center><\/td>
90%<\/center><\/td>\n<\/tr>\n
Loan amount<\/strong><\/center><\/td>
RM500,000<\/center><\/td>
RM360,000<\/center><\/td>\n<\/tr>\n
Home loan interest rate<\/strong><\/center><\/td>
4.45%<\/center><\/td>
4.45%<\/center><\/td>\n<\/tr>\n
Loan tenure<\/strong><\/center><\/td>
30<\/center><\/td>
30<\/center><\/td>\n<\/tr>\n
Instalment amount<\/strong><\/center><\/td>
RM2,519\/monthly<\/center><\/td>
RM1,813\/monthly<\/center><\/td>\n<\/tr>\n
DSR<\/strong><\/center><\/td>
58%<\/strong><\/font><\/center><\/td>
58%<\/strong><\/font><\/center><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Based on the figures above, an average homebuyer with zero commitment can afford property no higher than RM550,000, while an individual with a car loan of RM700 per month can afford a home of RM400,000 and below.<\/p>\n

However, if you have more debt, it would be an endless struggle to secure and sustain such a loan.<\/p>\n

Although the government has launched affordable housing schemes for low-to-medium income earners, you could be stretched pretty thin to afford a property at the address that you want.<\/p>\n

To balance affordability and also your wish list in a property, location is no longer the be-all, end-all factor in property shopping. Other criteria such as accessibility and connectivity have climbed higher in the priority list of a property buyer.<\/p>\n

<\/span>Micro factors of property location<\/strong><\/span><\/h2>\n

Exorbitant prices have given us little to no hope of owning a property in locations such as the golden triangle, but there are other townships which fit the bill and are built at strategic locations.<\/p>\n

Because of the rise in developments, the location criteria are broken down into micro-factors that shape the desirability of an area.<\/p>\n

These micro factors are accessibility, facilities and connectivity. Although a property is not located in a central location, it is still a convenient location to stay.<\/p>\n

Fact is, not many people want to live in the city center anymore, due to the limited unit, congestion, noise and just general lack of space.<\/p>\n

This is why looking slightly away from the city for a neighbourhood that offers a better environment may seem like a good idea.<\/p>\n

Here are what you should really be considering when it comes to location of a property:<\/p>\n

Access to major highways and public transport<\/strong><\/h3>\n

Most property listings usually indicate the distance between the unit available and public transport as these are one of the main marketable factors that influence homebuyers\u2019 decision.<\/p>\n

Traffic congestion is inevitable, and this is the reason that public transport is essential. Furthermore, those who don\u2019t own vehicles have an easy travelling option for their daily commute.<\/p>\n

For example, Serenia City, a 1,775-acre integrated township located in the vicinity of Salak Tinggi, Sepang, has both an Express Railway Link (ERL) station just a mere 4.4km away and access to major highways via the Serenia City Interchange, targeted to be completed by October 2018.<\/p>\n

Moreover, business travelers or frequent fliers have easy access to KLIA and KLIA2, especially with direct stops via the ERL.<\/p>\n

Serenia City is also expected to serve as an economic and transportation hub for its surrounding areas with the existence of the Sime Darby Business Park.<\/p>\n

Here are the transport and connectivity options available in Serenia City:<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t
Mode of Travel<\/strong><\/center><\/th>
Destination<\/strong><\/center><\/th>\n<\/tr>\n<\/thead>\n
Salak Tinggi ERL Station <\/strong>(4.4km away)<\/center><\/td>
KLIA, KLIA2, Bandar Tasik Selatan, Putrajaya & Cyberjaya, KL Sentral (LRT, MRT, KTM)<\/center><\/td>\n<\/tr>\n
Maju Expressway<\/strong> (MEX)<\/center><\/td>
Major junctions<\/u>
\nKuala Lumpur Kampung Pandan Interchange\/ Kuala Lumpur Middle Ring Road 1\/ East-West Link Expressway\/ Kuala Lumpur Seremban Expressway\/ New Pantai Expressway\/ Shah Alam Expressway\/ Jalan Seri Kembangan, Putrajaya Link\/ Cyber Jaya & Putrajaya Interchange <\/center><\/td>\n<\/tr>\n
North\u2013South Expressway Central Link <\/strong>(Elite Highway)<\/center><\/td>
Major junctions<\/u>
\nGuthrie Corridor Expressway\/ New Klang Valley Expressway\/ Shah Alam Expressway\/ Damansara \u2013 Puchong Expressway\/ South Klang Valley Expressway\/ Putrajaya Link\/ KLIA Expressway\/ North-South Expressway Southern route\/ Nilai North.<\/center><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

The comfort of convenience <\/strong><\/h3>\n

Access to clinics, hospitals, retail, as well as food and beverage outlets within a township makes a home ideal for sustainable living. You don\u2019t have to go to the city just to shop and if there\u2019s a medical emergency, you can rest assure that help is not too far away.<\/p>\n

Additionally, growing families or those expecting to start one should take into account the nearest schools within the area to enjoy the security and comfort of having your kids close to you.<\/p>\n

With today\u2019s hectic lifestyle, some of the highly sought-after facilities in a township are shopping malls (for days that you just can\u2019t cook a meal and want to eat out while doing some shopping), good schools and university (not just for your kids, but it also increases the rentability of your home if that becomes an option), and hospitals and clinics (you never know when you\u2019d need these facilities during an emergency).<\/p>\n

Serenia City checks everything on the list with the following facilities within reach:<\/p>\n