My Trading Adventure
Struggle to own property
CP TEH
Publish date: Sun, 14 Jul 2013, 10:51 PM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
It is 10pm ... Sunday. I have been working the whole week long, and it is tiring.
http://www.thestar.com.my/News/Nation/2013/07/14/Dad-dont-kick-me-out-yet.aspx
The last few years have seen young professionals struggle to own property. Now with rising house prices and a shorter home loan repayment period, some say it has become an impossible struggle.
WANTING and actually being able to afford your own place are two very different things.
With the oversupply of high-end condominiums shadowing the property market, fresh graduates and young professionals may have to either send out an SOS to their parents for cash or live at home because having "my own space" just got a little tougher.
Fresh graduate K.T.S. Chua, 23, who recently took out a RM30,000 personal loan to start a hotdog business, is relieved at narrowly missing the July new personal loan cap ruling but the shorter home loan repayment period has dampened the budding entrepreneur's plan for a bachelor pad.
TEH : Taking personal loan for a hot-dog biz is very risky, in my opinion.
He currently lives at home with his parents and two brothers.
"I was looking to get a place of my own; unfortunately, the new ruling will gravely affect my plans to purchase a home. Without the new cap, it is already so hard for me to buy property and I will have to put it on hold.
"Needless to say, I am really concerned about the higher monthly repayments and qualifying for the housing loan," he sighs.
Most of his friends who have just started working are "fuming" over the new ruling, the Penangite shares.
Unless you are from a rich family, plans of owning a home will have to be put on the back burner, they feel.
"Those from wealthy families can ask their parents to support them in purchasing a house. But I think it's safe to say that many more fresh graduates will be staying with their parents until they are more stable and able to move out on their own," he says.
At the end of the day, he cites high property prices as the biggest problem, not the new ruling.
He laments how property prices keep increasing but the salaries of the fresh graduates and even those who have been working for years have not.
------------------------------------------------------------------------------------------------------
Lecturer Cheryl Withaneachi, 30, agrees.
The Teluk Intan lass, who currently lives in Petaling Jaya, says the new ruling makes it difficult even for professionals to consider buying a house.
On top of rising house prices, the situation becomes practically impossible, as though housing is only meant for the urban rich these days, she grumbles.
She says that with higher repayments, it would be more practical for her to continue renting despite having "seriously considered" putting the monthly rental towards purchasing a house.
Cheryl started working almost eight years ago and is currently renting a house for RM1,500 - not inclusive of utilities which, she says, is pretty high.
TEH : As lecturers, we could NOT afford to rent a house of RM1,500, ok? Unless you are sharing with few others. If one has a family ... like mine, I rented RM800 per month when I first came back to KL. Then, I rented the current place for RM600 before bought over this current apartment(low-medium cost). We need to be realistic and prudent. Be frugal.
"Many of my friends who are around my age cannot afford a house and this is not only due to the ruling of late but the exorbitant house and apartment prices.
"I dread to think how fresh graduates or those who do not earn very much cope," she says, adding that fresh graduates who are based in the same location as their parents will definitely opt to stay in the family home due to the increasing living costs of transportation and housing.
"The rest of us who are not from the city have no choice but to struggle.
"The only way to buy a house is if it is jointly bought. So if you are married, the combined funds allow for more flexibility to purchase your first home but in my case (being single), it is a whole different ball game," she says, before calling on the government to look into house prices, instead of car prices, as a person can live without the latter.
TEH : Our gov will NOT reduce our cost of living. We were told to change our lifestyle ... as if we have much extra cash to spend lavishly. So, please do not harap our gov to do anything much for their rakyat. Bear in mind, we are in HUGE debt. If the control is not there, it will hurt our whole financial system ... and of coz, we will be hurt much more then.
"Paying through our nose for accommodation without actually owning the property is painful," she adds.
Got to try out to post in www.tratles.net
Do visit me there. Night
TEH
http://www.thestar.com.my/News/Nation/2013/07/14/Dad-dont-kick-me-out-yet.aspx
The last few years have seen young professionals struggle to own property. Now with rising house prices and a shorter home loan repayment period, some say it has become an impossible struggle.
WANTING and actually being able to afford your own place are two very different things.
With the oversupply of high-end condominiums shadowing the property market, fresh graduates and young professionals may have to either send out an SOS to their parents for cash or live at home because having "my own space" just got a little tougher.
Fresh graduate K.T.S. Chua, 23, who recently took out a RM30,000 personal loan to start a hotdog business, is relieved at narrowly missing the July new personal loan cap ruling but the shorter home loan repayment period has dampened the budding entrepreneur's plan for a bachelor pad.
TEH : Taking personal loan for a hot-dog biz is very risky, in my opinion.
He currently lives at home with his parents and two brothers.
"I was looking to get a place of my own; unfortunately, the new ruling will gravely affect my plans to purchase a home. Without the new cap, it is already so hard for me to buy property and I will have to put it on hold.
"Needless to say, I am really concerned about the higher monthly repayments and qualifying for the housing loan," he sighs.
Most of his friends who have just started working are "fuming" over the new ruling, the Penangite shares.
Unless you are from a rich family, plans of owning a home will have to be put on the back burner, they feel.
"Those from wealthy families can ask their parents to support them in purchasing a house. But I think it's safe to say that many more fresh graduates will be staying with their parents until they are more stable and able to move out on their own," he says.
At the end of the day, he cites high property prices as the biggest problem, not the new ruling.
He laments how property prices keep increasing but the salaries of the fresh graduates and even those who have been working for years have not.
------------------------------------------------------------------------------------------------------
Lecturer Cheryl Withaneachi, 30, agrees.
The Teluk Intan lass, who currently lives in Petaling Jaya, says the new ruling makes it difficult even for professionals to consider buying a house.
On top of rising house prices, the situation becomes practically impossible, as though housing is only meant for the urban rich these days, she grumbles.
She says that with higher repayments, it would be more practical for her to continue renting despite having "seriously considered" putting the monthly rental towards purchasing a house.
Cheryl started working almost eight years ago and is currently renting a house for RM1,500 - not inclusive of utilities which, she says, is pretty high.
TEH : As lecturers, we could NOT afford to rent a house of RM1,500, ok? Unless you are sharing with few others. If one has a family ... like mine, I rented RM800 per month when I first came back to KL. Then, I rented the current place for RM600 before bought over this current apartment(low-medium cost). We need to be realistic and prudent. Be frugal.
"Many of my friends who are around my age cannot afford a house and this is not only due to the ruling of late but the exorbitant house and apartment prices.
"I dread to think how fresh graduates or those who do not earn very much cope," she says, adding that fresh graduates who are based in the same location as their parents will definitely opt to stay in the family home due to the increasing living costs of transportation and housing.
"The rest of us who are not from the city have no choice but to struggle.
"The only way to buy a house is if it is jointly bought. So if you are married, the combined funds allow for more flexibility to purchase your first home but in my case (being single), it is a whole different ball game," she says, before calling on the government to look into house prices, instead of car prices, as a person can live without the latter.
TEH : Our gov will NOT reduce our cost of living. We were told to change our lifestyle ... as if we have much extra cash to spend lavishly. So, please do not harap our gov to do anything much for their rakyat. Bear in mind, we are in HUGE debt. If the control is not there, it will hurt our whole financial system ... and of coz, we will be hurt much more then.
"Paying through our nose for accommodation without actually owning the property is painful," she adds.
Got to try out to post in www.tratles.net
Do visit me there. Night
TEH
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Discussions
Be the first to like this. Showing 16 of 16 comments
I agree, I work in KL city centre. I still struggle to afford a RM2,500 repayment per month for a normal condo in KL with just RM400k loan. Mind you, to buy a 400k house in KL is almost impossible unless you are willing to stay in a slump area. Not to mention other expenses like car,food (even cooking by myself is expensive) and etc. Sad for us as Malaysian purchasing power is relatively low compare to other countries. If I work in Australia, I can easily afford an apartment in the city ($250k), buy Yaris ($13k), and still be able to live on my own by cooking myself (way way cheaper) plus a work life balance of 8.00-5.30pm. The pay will be slightly higher also. In Malaysia it is like apartment (RM 500k)and Car (RM 40k), and a terrible working hour of 8.00am - 10pm.
2013-07-15 09:00
property prices keep on rising. My relative had earlier wanted to sell a double storey intermediate (Taiping) for around 200K+, now he probably can get a buyer, the problem is, once he sells and looks around for a new property, there is no way he can buy another similar double storey house for 200K+, unless he is willing to pay 300K+. So he has decided to hold on to his current house.
2013-07-15 09:09
It's not about rush, it is about the need to buy a property.If one would have not waited and bought a property 2009 price, he is far more affordable than he can buy a property now.... iafx.... saving will only allow inflation to eat up all the value of your savings...
2013-07-15 09:11
The sad story is this. If you have not already owned/bought a house/condo/apartment before 2000 it is very highly unlikely or improbable for you to buy any reasonable house/condo/apartment meeting your budget/income in a reasonable location any time soon. And that is a fact. There is no way a young couple with a gross household income of say RM 5000/month can afford to buy and pay mortgage repayments for a house/condo of RM 500,000 in a reasonable location. The Govt needs to do a lot more to bring down house prices or you just have to wait for the next property/financial meltdown
2013-07-15 11:00
yea waited for 3 years, it still doesn't melt down, and even after election, the economy goes even stronger... lolx ... how I wish I can see the future
2013-07-15 11:02
how much can a fresh grad save i know it best..after u save the property price for next year outgrow your saving for sure. not to say buy car or what.
2013-07-15 11:02
ya I think that's what happen to me ipomember.... inflation just eat up all my savings
2013-07-15 11:04
one more things, dont speculate on financial meltdown, you might even lost your job not to mention about buying property. haha
2013-07-15 11:05
ya true for private sectors, but not in government position I guess as it has more resilient to economy recession
2013-07-15 11:10
Just for comparison to show how impossible it is to buy and own a house for fresh graduates/young couple. 30 years ago as a fresh graduate, my wife and I with a gross income of RM 3000/month bought a in Taman Tun Dr Ismail, KL for RM 150k. The same house today has a market value of around RM 1 million. There is no way any young couple TODAY earning say RM 5000 gross per month can afford the same house which I bought 30 years ago. For any couple to be able to do that they must be earning at least RM 10,000/month. It simply goes to show that salary has not kept pace with inflation and house prices. In short, it is very difficult for the young generation to survive unless you have rich parents to pay for you. Otherwise, its tough
2013-07-15 11:20
how come you guys never though of playing kutu for your property down payment ? my ah ma & ah gong teaches me to play kutu when I was in secondary school. After graduated & a year plus joining working force.... wallop my first property liao using kutu money as down payment, (55 kutu kakis - RM500 each month = 25k++ down-payment) immediately for for first property back then....make use of other people $$$ first, pay them back monthly.
kutu money -there is no record shown at financial institution - BNM wont' be able to trace it, hence it won't occupy your margin of financing %...but be-careful lor, kutu is illegal, only play with trusted group of friends. Luckily my ah ma & ah gong got a lot good kutu kakis - so far no chao lou kutu head case. If your kutu head chao lou, then cry also no tear if haven't reach your turn to use the money.
2013-07-15 11:46
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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My sympathy to all new graduates who just just started working. If u r working in ur own hometown be frugal n try to save as much as possible. Many fresh graduates r living a lavished life clubbing n hang out at Starbucks, Coffee Bean etc...too often. Moreover many r over purchasing unproductive items on credit.
2013-07-15 00:32