![\"Average](\"http:\/\/poobalan.com\/blog\/wp-content\/uploads\/2014\/02\/householdincome1802.jpg\")
<\/a>Average household income<\/p><\/div>\n
[image from The Star<\/a>] [click on image to view larger size]<\/p>\n Some analysis of the respondents: 94% are married. 73% are male. 59% work in private sector; 20% are self-employed, and 14% work in government. No mention if the income is from both spouse or single spouse.<\/p>\n 13% have post-grad qualifications, 40% have bachelor degree, and 21% have a diploma. 68% are Malay\/bumiputra; 30% Chinese and just 2% Indians. \u00a0Looks like not many Indians live in these places. And seems like the affluent Malays\/bumiputera are quite alot.<\/p>\n Quite importantly, the age group of respondents is missing. Show this info to any adult below age 30 and see if they fit into this income group. If the respondents are into their late 30s \u00a0or more, then the young adults can’t even think about buying houses in these places. 10-15 years down the lane, how would it be? As it is, our parents could afford to buy house in these locations when they were young. Read another article in the Star<\/a> where Mr Gill (age 63) bought house in SS12 Subang Jaya way back in 1985 (age 34) for RM200k that took quarter of his combined income with wife. Now at age 34, what can you buy?<\/p>\n It will interesting to also identify the household size of the respondents. Does the average income consider the household size (kids, maid, parents, siblings etc)?<\/p>\n The other part of the survey covered their expenditure information. So, 12% of income goes into savings, translating into RM1749.60 on average. \u00a0How many percent can the rest of us save? Transportation is 16% (Rm2,332.80), Food 15% (RM2,187), mortgage 14% (RM2,041.20), another 15% for other loans (RM2,187), 13% for other expenses (Rm1,895.40), childcare\/education 7% (RM1,020.60) and insurance 6% (RM874.80). Most likely these houses have two or more cars. How is your expenses like?<\/p>\n Ok, let’s look some other statistics from DOS<\/a> and EPU<\/a>\u00a0which both refer to Household Income Survey (last done in 2012). All stats below refer to Klang Valley and\/or urban figures wherever possible:<\/p>\n Looking at HIS statistics, using average salary earned by those staying in Selangor or KL and double it (both spouse working), then you can buy house in those areas. However taking into account that 41% earn more than RM5,000 and that the top 20% earn average of RM13.6k, then we are looking at a small pool of between 20-40% of people affording to buy houses.<\/p>\n The survey covers affluent areas, and I suspect its to plan for building more affordable homes for the those households who can afford to earn nearly triple the national average income.<\/p>\n BTW, looks like I can’t afford a house in Klang Valley if want to buy now.<\/p>\n Below is the article from the Star:<\/p>\n You must have an average household income of RM14,580 a month to afford a home in the Klang Valley, according to a recent study.<\/p>\n The study \u2013 spearheaded by Sime Darby Property Bhd in collaboration with the Faculty of Built Environment of Universiti Malaya \u2013 takes into account the current household spending trend, price of homes and mortgage rates.<\/p>\n It found that certain groups of buyers interested in strategic areas can have access to houses that are priced at 56 times their household income.<\/p>\n The study also found that this same group can afford to spend up to 26% of their monthly household income to service a mortgage.<\/p>\n It identified strategic areas in the Klang Valley that are considered not only accessible but have the potential to appreciate in value. They include Nilai, Denai Alam, Bukit Jelutong and Bukit Subang.<\/p>\n A report of the study said that houses in selected areas in the Klang Valley remain accessible to homeowners who may be looking to invest in a second home.<\/p>\n The Housing-Income Index which was launched here yesterday by Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, who said the survey results would be useful for potential house buyers.<\/p>\n \u201cThe Index and its key findings had been reviewed by the ministry, and we find that the information is valuable as it can help policy makers and developers work hand-in-hand to build more houses that are not only accessible. but which can appreciate in value,\u201d he said.<\/p>\n Abdul Rahman hoped that other property developers and the academia can carry out similar surveys in the country.<\/p>\n Based on the findings, Sime Darby said that 68% ofplanned housing schemes in the Klang Valley were in the accessible range.<\/p>\n \u201cWe intend to utilise the results to develop innovative, high quality products that are accessible and meet market needs,\u201d said Sime darby Property managing director Datuk Seri Abd Wahab Maskan.<\/p>\n\n
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