Sunday, September 23, 2012

The burden of House Prices on Citizens and Capitalism

  1. 1.    The major players and owners amongst  the housing developers in Malaysia are the same people  that are the top earners in the country. Is this a coincidence?
    2.    Out of 10, maybe 1 if not 2, are bumiputera-owned. The rest?
    3.    Developers decide on the cost of houses they want to sell.
    4.    House owners play no role in that decision-making.
    5.    Prospective house owners are at the mercy of these rich, in fact, very rich developers.
    6.    Prospective house owners  are mostly in the low-income and middle-income bracket.
    7.    Few people, if any, buy houses in cash.
    8.    To buy a house, most of us have to borrow from the bank a hefty amount of money over many many years.
    9.    The duration of home loan instalment may stretch between 5 – 25 years.
    10. The higher the price of the house, the higher the loan amount, and the higher the borrower has to pay every month.
    11. That monthly repayment to pay the bank, is burdensome and is a big big chunk of the borrower’s income.
    12. So, the burden upon the individual is not the food, meals, car, petrol or the kids.
    13. The burden  is the house monthly payment.
    14. The burden is not because of  the government’s policies
    15. The burden is because of the ridiculous price of houses set by developers.
    16. The government has done its level best to make life easier for lower income and middle-income groups, such as KedaiRakyat1Malaysia (KR1M), Klinik1Malaysia, subsidies for petrol, sugar, flour, projects such as e-kasih, AzAM and many more.
    17. I am surprised that  anti-government voices do not  bring the issue of housing prices at all. Why? Ironic isn’t it?
    18. Housing prices are killing us all, yet the anti-government voices are silent on this.
    19. They are selective in whom they want to “attack”.
    20. They do not “attack” developers.
    21. Do you wonder why?
    22. The price of houses is the main factor that eats away at your income.
    23. The developer (and the bank) is laughing all the way to the bank.
    24. We cannot allow the capitalist phenomenon to rule our lives.
    25. WE  hope the ruling government will take action and set up a committee to look into this.

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