Is Your Salary Enough to Buy You a House?

Reading these 2 articles from The Star on the same day got me thinking...is this really the case?

Article #1: Salaries not going up as fast as prices of homes
Link: http://www.thestar.com.my/News/Nation/2014/02/18/Salaries-not-going-up-as-fast-as-prices-of-homes/

Key excerpts:

When A.S. Gill bought his double-storey link house in SS12 in Subang Jaya back in 1985, it took about a quarter of his salary combined with that of his wife to realise their dream. The house was RM200,000 but now it costs RM1mil. 

“Today, I am estimating that youngsters would have to fork out at least 50% of their salary.”

“More young people are buying old houses with the support of their parents.” 

“If you want cheap and nearby the city, don’t expect it to be big. If you want big and cheap, don’t expect it to be nearby.”

Article #2: Klang Valley still affordable
Link: http://www.thestar.com.my/News/Nation/2014/02/18/Klang-Valley-still-affordable-A-household-needs-monthly-income-of-RM14580-to-buy-a-home/

Key excerpts:

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. 

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. 

The study also found that this same group can afford to spend up to 26% of their monthly household income to service a mortgage.

What can we conclude?

1. If you have a rich dad, good for you.
2. If your dad is not rich, don't blame and sulk, just go out and look for more money. You may not have a rich dad, but that doesn't mean your children should not have one.
3. If you blame everyone else other than yourself for not being able to afford a house, most likely your children will do the same too. And one thing for sure, you'll be one of the persons they blame too. This is called duplication.

Take action. Sitting at home watching, listening and reading news doesn't make you money. If it does, you should have been rich by now.