Wanna buy a home?

I don’t suppose anyone is really looking into the phenomenon of “30 being the new 20”. This basically means that people live with their parents well into their 20s and 30s in today’s era, compared to our parents’, where children move out in their 20s. A big part of the reason is the affordability of a new home now compared to our parents’ generation.

If one looks at the cost of a home now, a reasonable dream house is really priced out of the average consumer and the average Joe plumber wage earner’s means. When one pulls a couple k a month, and the cost of an entry level property is a couple hundred grand, ranging from 350 to 500k, the prospect of owning that home is so unreal that there is little real incentive for our yuppies to seriously cobble together a financial plan to try to reach for that home. Hence they choose to indulge in lavish short term lifestyles, figuring that a few hundred dollars splashed on a Kontiki trip or a luxurious spa treatment does not really dent their chances of owning that dream home down by the beach.

This post will not be debating on the virtues and the general spending habits of the 20 something age group, and definitely will not criticize the debt laden culture that so commonly inflicts those of this generation. As an aside, did you know that the average American carries 13 credit cards? What is the implication of that?

At any rate, I’ve been looking at homes here in KL, and it is still affordable to a certain extent, but definitely not for those who are earning an average salary. Over in Australia, where house prices have been fluctuating wildly, it seems that for an average couple starting out, trying to find a reasonable property in Melbourne and Sydney is quite an impossible task, unless one is prepared to stay at Werribee. Werribee! That’s a couple hours train ride from the CBD! What next? Will we be taking planes to work next on a daily basis, sometime in 50 years? Seems like there are no more affordable and reasonable housing left on the suburbs of Melbourne and Sydney – and KL.

Imagine the social costs of housing affordability. We are seeing it already – fathers renting rooms closer to their workplaces to save the hour long drive to work and the hour long drive back home, in their bid to provide a bigger home for their children to play in. Heavy traffic jams, productivity being affected, time spent on the road instead of enhancing family welfare or contributing to the economy via their work, and people being more stressed out, having to sleep earlier and wake later…etc.

We really should address this issue. If I was in Government…