(Source: The Star, Jan 30, 2024)
Owning a home, a dream for many young Malaysians in major cities, is slipping further away due to skyrocketing prices and other financial woes. Here’s a closer look:
Pricey Dreams
- The affordability gap is huge: salaries crawl up 2% annually, while house prices leap 6-8%! Catching up feels impossible.
- Even starter homes cost a fortune. A RM300,000 house with a RM1,500 monthly payment squeezes budgets, especially with rising living costs.
Beyond Money
- Many young adults juggle car loans, credit card bills, and personal loans, leaving little room for saving for a down payment.
- Renting seems cheaper, especially if affordable options are far from work. But remember, you’re building someone else’s wealth, not your own.
A Worrying Trend
- Delaying homeownership creates a debt trap, making homeownership even harder later despite rising prices.
- This could lead to homelessness in retirement or dependence on family for housing.
Finding Solutions
- The government can step in by:
- Building more affordable landed properties.
- Offering subsidies for building materials and taking over amenity construction to reduce costs.
- Streamlining building processes to cut red tape and further lower costs.
- Young adults can take action by:
- Prioritizing saving for a house over other expenses.
- Exploring government programs offering affordable housing options.
- Remembering that a house is an investment that grows in value, unlike a depreciating car.
Time is of the Essence:
Don’t wait! The longer you delay, the harder it becomes to own your own home. Start planning and saving now!
