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Wednesday, September 8, 2010

I'd Rather Live in Discovered Land

Property prices rises at an average of 15% yearly over the last 3 years (okay not exactly but almost, you can read it here).

This is highly distressing/saddening.

I would like to one day own a property and I'm not delusional so as to think that I could own one in the next 2 years. However, the way it is right now, I don't think I can even own one in my initial target of 7 years.

Of course I can own one if for example I aim for a house way off KL-Klang Valley, a bit below moderate sized and in a neighborhood that cowboys in the old 1800's would be proud to have "discovered".

But I'm being realistic as well. Property may be a one-time thing in life so I want to get it right. I want it to be close to a good school for my children and it should also be well situated for me and my wife. The size has to be right because I'll probably stay there till I die.

The glasses must be bullet-proof because you never what might come at you, the grasses (yes it must have a garden) must be the right green color and It must also be able to handle strong weather in case a typhoon comes and blow everything around it.

Some may say that is too picky (okay the last para was bull-crap, I don't care if the glass if bullet-proof, so long as it is able to withstand heavy fire). But it is one-time thing for some people and I want to get it right. Who knows how much money I'll make in the future.

But seeing as that property prices rises almost as fast as bread dough in the oven, chances are I may have to wait another 15 years to have my share. In the meantime, I'd be paying some lucky chap rental because it just so happen he's luckier than I am to be born when properties are not a plaything for the rich and able.

The Government's solution is to build low-cost units which sells at about RM40,000. That's good for low income family. Thing is, there's a lot of them as well. But news on the street is, even these are taken by high-income individuals and rented back to the low-income people.

It's not that I do not want to own low-cost units, but it would not be fair on many accounts.

They are also trying to get that mortgage cap thing on the go, but it has only been proposed. Not quite beneficial for us on the street, but it may stagnate property prices. But then if I can't come up with RM50,000 for down-payment now, how am I going to come up with RM100,000?

That's the problem we're facing now. The middle-income trap. We as a nation are not developed enough and yet we have crossed that low-income nation barrier. A problem faced by many developing countries. For a better understanding on this, read this Michael Schuman character's blog entry here. Interesting read and shows how we are actually in decline as opposed to our former equals like of South Korea, Taiwan and China.

Again, this where I laud the resolve by PKR who are trying (God knows how) to raise the family income level to RM4,000 per family. A bold initiative indeed which deserves to be supported.

In the interim, hopefully either the property market bubble bursts (not so good for the economy but good for the people on the street) or I suddenly get an offer for a RM20,000 salary job in the next 2 years just to read blogs and write crap.

Let's pray for both.

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