Who falls under middle income earners category? They are those who earn between RM2,500.00 to RM5,000.00 a month. Many of these people are the fresh graduates and young families. And this category of Malaysians are badly hit when it comes to buying their first house.
Their salary cannot afford them to buy houses worth more than RM240,000.00 which is getting harder to get in Klang Valley / Selangor. For houses at this price, the monthly installment will come to around RM2,000.00. The rule of the thumb to get approval for loan of this amount - you must have income three times the amount of house loan you have to pay every month! And it's going to get harder with Bank Negara getting stricter in granting loan approval.
One one hand they cannot afford the new houses, supposedly meant for middle income group. On the other hand, they cannot apply for low cost houses because they are not earning less than RM2,500.00 a month.
Middle income earners in Klang Valley are the pitiful lot, their plight not much publicised. Graduates should be able to own a comfortable shelter over the head, normally, especially when they are not asking for fancy houses. Many don't feel so nice to talk about it, after all many are graduates! Many are just making enough to make ends meet. Lucky are those who don't have debts. They are in a situation like a big man with his thumb badly cut but they don't cry because they are too big to cry and they cannot smile because they are in deep pain!
Middle income earners in Klang Valley are the pitiful lot, their plight not much publicised. Graduates should be able to own a comfortable shelter over the head, normally, especially when they are not asking for fancy houses. Many don't feel so nice to talk about it, after all many are graduates! Many are just making enough to make ends meet. Lucky are those who don't have debts. They are in a situation like a big man with his thumb badly cut but they don't cry because they are too big to cry and they cannot smile because they are in deep pain!
Klang, Shah Alam, Kajang and Hulu Selangor, so far, have recorded a high demand for affordable houses. It's estimated that Selangor still need not less than 10,000 units of affordable houses in the next five years. The study has been made. The direction has been shown. What do all these mean to the housing developers of Klang Valley?
The demand is definitely there. It's a matter of affordability to the house buyers ; a matter of pricing to the housing developer. Some innovation on the whole process of development and efficiency in the execution of development may help the developer on the costing side, and hence the pricing.
