The capability of Malaysian in buying a house of today / Abdur Rasyid Rosli ... [et al.]

Generally, all creatures in this world either human or animal need of
shelter as a place of refuge from inclement weather, natural disasters and
dangerous conditions. House, home and shelter is a basic need of human to
be living in normal life. Without home or shelter anybody could not ever able
to live in quality condition. The United Nation (UN) organization has
underlined that the right to adequate housing should not be interpreted
narrowly. Rather, it should be seen as the right to live somewhere in security,
peace and dignity United Nation (1991 ).
Over the last decades, housing markets have going to the price hiking
to maximum in the market. But, the economic level especially individual
incomes not increase as fast as housing price does. This results to the middle
income and more to low income group especially young starters. Income level
for new worker now still at the low rate. Referring to Malaysia Statistical
Department (2014), minimum wage for west Malaysia (peninsular) is RM900
and RM800 in East Malaysia (Sabah and Sarawak). Housing price is spiking
very high especially in urban and suburban areas. In this research , we
concern about the plight Malaysian is that whether today will be able to buy a
house. Housing prices of today is belief really affected most of Malaysian
because of their economic level. Capability to own a house has been argued
by many researcher, experts and journal authors stated that this issue has
been influencing by the prices, household incomes and the structure of
financing cost but the question is what was government roles to overcome the
issue and how far policy or action have been planned going.
The rising house prices in Malaysia, owning a house seems more like
an impossible dream especially young generations. A good salary will grant a
capability to buy a house. This is because loans are not easy to be approved
by banks today. Generally, when monthly instalment exceeds to 60% of the
borrower's monthly income, banks would not approve a loan and this is
assuming the scenario where the individual is able to fork out RM 25 000 up
front and possesses a good credit history.
Even though, Government has implement first house scheme program,
which first house buyer exempted to pay deposits of the house, but if the
monthly income still low, it will not be approved. Government also implement
low cost house program such as 1 PRIMA and PPRT, but from the audit
(2014), only 50 thousand units PPRT was built up while Malaysian population
in at most 28 billion which 13 billons are young generation.
According to report released by Malaysian Valuation and Property
Services Department, Property Market Report (2014), the "average house"
price for All House in Malaysia continued to increase to RM283, 328, up from
RM265, 737 in 2013. The average houses price In Malaysia increasing
annually around 10% recorded over last 5 years compared to years before.