Jan 4 2015, 09:54 PM
QUOTE(bearbearwong @ Jan 4 2015, 08:49 PM)
What is true affordability?
OVER the past decade, lenders andsome news reports had many of us believe that affordability simply means qualifying to make a purchase in cash or through a loan.
Of course, this ended up with some pretty dire consequences, most saliently being the alarming number of Malaysian households that are now in the red.
Statistics from Bank Negara Malaysia (BNM) showed the ratio of household debt to gross domestic product (GDP) in Malaysia has reached 83% in 2014, compared to 70% in 2009. The figure puts us at the highest GDP level for developing countries in Asia compared with Thailand (30%), Indonesia (15.8%), Hong Kong (58%), Taiwan (82%), Japan (75%) and Singapore (67%).
......
The acceptable level of debt-service-ratio is about 30%, meaning that a household should not be spending more than one third of their income on debt repayment. However, 2012 statistics revealed that the debt-service-ratio of households in Malaysia stood at 43.5%, which means that Malaysian households use more than two-fifth of their monthly disposable income on average to service their loans, The Star reported.
More alarmingly, the estimated debt-service-ratio of civil servants in the country at around 60%.
With some 60 Malaysians declaring bankruptcy every day, there is a growing concern locally about household debt. According to statistics from the Malaysian Department of Insolvency, some 19,575 cases were categorised bankrupt in 2012 alone.
Effective money management is imperative to ensure one does not fall into the lethal debt trap.
http://www.thestar.com.my/Business/Investi...lity/?style=biz
Bear bear you got read the article or not? It say you should buy walk up flat. Forget the dsl or condo le. Ada paham tak?OVER the past decade, lenders andsome news reports had many of us believe that affordability simply means qualifying to make a purchase in cash or through a loan.
Of course, this ended up with some pretty dire consequences, most saliently being the alarming number of Malaysian households that are now in the red.
Statistics from Bank Negara Malaysia (BNM) showed the ratio of household debt to gross domestic product (GDP) in Malaysia has reached 83% in 2014, compared to 70% in 2009. The figure puts us at the highest GDP level for developing countries in Asia compared with Thailand (30%), Indonesia (15.8%), Hong Kong (58%), Taiwan (82%), Japan (75%) and Singapore (67%).
......
The acceptable level of debt-service-ratio is about 30%, meaning that a household should not be spending more than one third of their income on debt repayment. However, 2012 statistics revealed that the debt-service-ratio of households in Malaysia stood at 43.5%, which means that Malaysian households use more than two-fifth of their monthly disposable income on average to service their loans, The Star reported.
More alarmingly, the estimated debt-service-ratio of civil servants in the country at around 60%.
With some 60 Malaysians declaring bankruptcy every day, there is a growing concern locally about household debt. According to statistics from the Malaysian Department of Insolvency, some 19,575 cases were categorised bankrupt in 2012 alone.
Effective money management is imperative to ensure one does not fall into the lethal debt trap.
http://www.thestar.com.my/Business/Investi...lity/?style=biz
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