Property price: the myth of "unaffordable"
Many columnists and politicians (especially Opposition ones) like to harp on property prices being out-of-reach to the majority of people.
This is a rather simplistic slogan that they like to keep repeating because a lot of people tend to agree with it at face value.
Such a statement is only true up to a certain extent.
To what extent, you ask, gentle reader?
Well, if you are referring to newly launched properties by developers - then hella yes, they are QUITE expensive by both ticket size and cost per square foot!
Why is this so?
This is their pricing strategy - actually they give a lot of "rebates" and "discounts" to trick you into thinking that you are getting a good deal, AND that by these methods, you can get nearly 100% financing because the banks think you've paid down 10% but the developer is helping you "cheat" on this.
Given the limited land available and the need to turn the maximum profit out of each project, developers will price as high as they think the market can bear.
Therefore, the PERCEPTION created by their advertisements and marketing campaigns is that ALL property is getting expensive.
But I put it to you that there are in fact AFFORDABLE housing available, IF you don't mind starting small - especially for 1st time buyers.
There are plenty of apartments and flats that in KL and Selangor that can be bought for as low as 80k.
Now, of course, these are not exactly posh condos - but if that is all your budget can take at the moment, then that's all you can buy!
Most buyers are a bit delusional, unfortunately. They dream of living in a brand new condo but in reality, what they can really afford is a shop-apartment.
So how? Keep living in dreamland and get upset because you can't buy a house? OR, wake up, buy something smaller and cheaper first then improve your income, buy a bigger one when you can afford it and move up the ladder progressively?
Yeah... most people will choose option 1, actually.
This is a rather simplistic slogan that they like to keep repeating because a lot of people tend to agree with it at face value.
Such a statement is only true up to a certain extent.
To what extent, you ask, gentle reader?
Well, if you are referring to newly launched properties by developers - then hella yes, they are QUITE expensive by both ticket size and cost per square foot!
Why is this so?
This is their pricing strategy - actually they give a lot of "rebates" and "discounts" to trick you into thinking that you are getting a good deal, AND that by these methods, you can get nearly 100% financing because the banks think you've paid down 10% but the developer is helping you "cheat" on this.
Given the limited land available and the need to turn the maximum profit out of each project, developers will price as high as they think the market can bear.
Therefore, the PERCEPTION created by their advertisements and marketing campaigns is that ALL property is getting expensive.
But I put it to you that there are in fact AFFORDABLE housing available, IF you don't mind starting small - especially for 1st time buyers.
There are plenty of apartments and flats that in KL and Selangor that can be bought for as low as 80k.
Now, of course, these are not exactly posh condos - but if that is all your budget can take at the moment, then that's all you can buy!
Most buyers are a bit delusional, unfortunately. They dream of living in a brand new condo but in reality, what they can really afford is a shop-apartment.
So how? Keep living in dreamland and get upset because you can't buy a house? OR, wake up, buy something smaller and cheaper first then improve your income, buy a bigger one when you can afford it and move up the ladder progressively?
Yeah... most people will choose option 1, actually.
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