In the past, there was a 'formula' of life that was considered the standard of success: finish your studies, get a stable job, and the first thing you have to do is buy your own house. That's a sign that you're an adult and good at planning for the future.
But today, that formula seems to be no longer applicable. The fact is, even a full-time job with a monthly pay slip does not necessarily qualify you to own a key to your own house. The line between 'affordable' and 'affordable' is getting further and further apart.
The reality is very sad. Property prices are skyrocketing, while the salary scale seems to be frozen in its old groove. Added to that is the increasing cost of living, almost every cent of your daily salary is 'eaten' by inflation.
Want to collect a 10% deposit that reaches tens of thousands of ringgit? It requires years of sacrifice, a stomach-churning diet, and drastic lifestyle cuts. Many young people are not lazy or don't try, it's just that today's economic system sets the finish line too high to reach.
Finally, there has been a shift in mindset. Many have had to forget about the ego of owning an asset, and have chosen to rent as a realistic plan. Buying a house, which was once considered a common goal, now feels like a luxurious dream that only a certain group can touch.
The big question now is, is having a roof over your head in this day and age still a basic necessity guaranteed for all… or has it actually turned into a form of luxury that only a lucky few can afford?
What is the reason for working day and night but still not being able to afford a house?
Houses Are Becoming More Expensive
According to the Khazanah Research Institute, house prices in Malaysia are still at a “seriously unaffordable” level, when the median house price exceeds the means of most households, especially young people who are just starting their careers.
This situation occurs because of the significant gap between income growth and property prices.
Starting salaries for graduates and young people have not changed much in the past decade, and some have even remained at almost the same level as 10 years ago.
During the same period, house prices have continued to rise as developers tend to build high-priced properties for greater returns. This means that many homes labeled as “affordable” are actually still beyond the reach of the majority of the population.
For young people who have just started working, their net income after deducting living expenses, education loans such as PTPTN, and rent is often minimal. This makes the target of raising RM30,000 to RM50,000 for a deposit and legal fees a major challenge, and is usually only achievable with financial assistance from family.
High Deposits
To buy their first home, many people need to provide a deposit of around 10% of the house price. With house prices rising, the amount of savings required can reach tens of thousands of ringgit and take years to accumulate.
This difficulty stems from the significant difference between the growth rate of income and property prices. Property prices have skyrocketed, while salaries, especially starting salaries, have remained static or have not changed much in the past decade.
Amassing this deposit requires years of sacrifice, ‘stomach-tightening’, and drastic lifestyle cuts. Ultimately, this situation has forced many young people to forget about the goal of owning an asset and choose to rent as a more realistic plan.
Salary Not Catching Up
Although people's incomes increase little by little every year, house prices are seen to be increasing much faster, to the point that many feel that their salaries are no longer able to keep up with the current property market price.
The most obvious effect of this "Salary Not Catching Up" situation can be seen when someone tries to save money for a house deposit. This situation is often a terrifying and exhausting nightmare for young people:
Year One: You set a target to buy a house worth RM300,000. You calculate the budget and find that you need RM30,000 for a 10% deposit. With great discipline, you start saving RM500 a month.
Year Five: After five years of struggling, you manage to collect the RM30,000. However, when you return to the market, the same or equivalent house is now worth RM420,000!
Your deposit requirement has now jumped to RM42,000.
The finish line of the real estate market keeps moving forward every time a buyer tries to approach it. The savings accumulated through hard work eventually lose their purchasing power due to extreme property inflation.
Forced to rent
As the cost of buying a house is increasing, many young people are choosing to continue renting because it is considered more realistic than bearing the high commitment of a housing loan for decades.
This shift in mindset occurs because buying a house is now felt like a luxurious dream that can only be touched by a certain group, and is no longer a common goal. By letting go of the ego of owning an asset, renting becomes an option that allows individuals to continue their survival without the extreme financial pressure of an economic system that sets the finish line too high.
Not Enough Work
Working full-time today does not necessarily guarantee that someone can afford to buy a house because a large part of their income is also used for living expenses, education debts, monthly commitments and increasing daily expenses.
In fact, monthly salaries are often depleted due to inflationary pressures and the increasing cost of living. The life formula that was once considered the standard of success such as finishing school, getting a stable job and then buying a house, is no longer that easy to achieve.
The line between “affordable to buy” and “affordable to just look” is widening, making home ownership increasingly seen as a grand dream, no longer just a basic necessity that can be easily achieved.
For some of the younger generation, owning their own home is no longer something automatic after working, but rather requires a high income, careful financial planning or financial support from family.
