Dec 27 2014, 02:06 PM
QUOTE(JasonW13 @ Dec 27 2014, 12:24 PM)
What is ur view on the fact that there more n more young people who are at their 20's yet unable to afford for a house? 
Need papamama to withdraw EPF to fund the purchase? Am looking to buy a single terrace but the price is like wtf.
Welcome to the discussion Need papamama to withdraw EPF to fund the purchase? Am looking to buy a single terrace but the price is like wtf.
Let me give an overall idea of the development of the property market in malaysia for the past 20-25 years.
1. In the 80s and 90s when I was the youngster in the 20s, we do not dream of owning a property. Due to the strict bank requirement then, property owner has to prepare about 15% of the property price as deposit+legal fees. Further more, the interest rate is around ~8% with tenure of max 20 years
2. So, the barrier of entry into the property market is high. The first being the 15% deposit (the killer) and secondly, the high monthly instalment due to high interest and short tenure
3. Furthermore, parents of youngsters in the 80s and 90s were mostly not tertiary educated. So, the parents do not provided financial assistance to buy house. The fact that the parents sweat out to provide tertiary education to their children is already a luxury
4. Hence, for youngster will wait right until age ~30 thereabout, only they consider buying their first property after climbing the corporate ladder high enough.
5. Fast forward to 2008, when the Americans implement QE1, QE2, QE3 (unlimited). The world was flushed with money. So much money that the door of banks' vault cannot close properly
So, they relax their policy to lend out their excess money. As a results, interest rates is reduced to all time low. Loan tenure increase to 40 years. Can't afford the 15% deposit ? Nevermind, banks partnered with developers and allow buyer "zero-cost" entry.6. This open the doors to many new property buyers previously can't afford to buy due to points in #2 above
7. These property buyers include fresh grads in their early 20s. Coupled with their partner (female who are getting more educated and earning as much), suddenly they can afford housed in RM500k range
So, I think your first sentence should read :
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What is ur view on the fact that there more n more young people who are at their 20's can afford for a house?
The
should be Your generation is much blessed. At least you have the chance to own a house at such early age. Whereas, my generation with the 15% deposit and high interest barrier, we don't even have a chance at all
My advice to the youngster now is try to work hard and earn more money. You can always partner your other half and afford the monthly instalment. In the 80s and 90s not that many ladies were as educated as the men, so the ladies were more a burden then. Now, the ladies are a contributor to our household.
Don't blame the free market as a hinder to your dream of owning a house. Be positive and find ways to realise your dream
As the saying goes "if you are born poor, blame your parents. If you die poor, blame yourself"
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). I don't think i am the very fortunate among the 10k employees across the group companies, tonnes of them have higher pay than me. Actually it is more on personal preferences when allocate their limited money into which part of expenses.
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