Affordability of homes? It’s an issue EVERYWHERE.

A friend said that homes in Malaysia are getting way too expensive and soon no one could even afford one. I told him that every year we continue to have huge numbers of transactions running in hundreds of thousands. He questioned, ‘Then why unsold properties are so high?’ (Earlier article here) I replied, ‘let’s just say you are right but the issue is not happening just in Malaysia.’ He then shared how his friends were able to buy a huge landed property in an advanced country near us. 😛 Perhaps we take a look at just a few countries where affordability seems to be a big issue?

Australia. Article in news.com.au: This is the result of a survey by a lender. “First home buyers are still worried about housing being too expensive, with 77 per cent saying they’re ‘worried that housing is increasingly out of reach.” 84 percent of Australians believe that housing affordability is still worsening. Anyway, this was what MEAndrew Bartolo said, “The Australian property market has seen seven price declines-recover cycles in Sydney since 1984 and all have seen prices recover, most within four years.”

Britain. Report by UBS analysts. Article in TheGuardian.com House prices in London are the most over-valued of any major city in the world and are in “bubble-risk territory”, a report by economists at UBS has found. It found London was less affordable for locals who wanted to buy than any city except Hong Kong, and that it was at most risk of prices falling.
Meanwhile, wage growth has been sluggish, and the price increases have made London one of the most expensive cities in the world based on price-to-income and price-to-rent ratios, the UBS report said.

Hong Kong? Actually, we do not need to compare Malaysia to Hong Kong. They are just too far ahead for us to catch up. Earlier article here. However, their government, just like many governments world wide are trying to help the people own a place they could call their own. Here’s that recent article: Cheapest Home in the most expensive city. Let’s also note that our new government is also doing a lot to provide Malaysians with a home. However, it should also start from the individual too. Learn more, earn higher and well affordability gets better with the right understanding of WHY buy property instead of just WHERE. Happy investing.

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written on 26 Dec 2018

Next suggested article: Income level is more important than property price, true?


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