Recent findings state that property remains an important asset for Malaysian millennials.
HSBC Holdings Plc recent survey ‘Behind the Brick’ reveals that of the Malaysians who do not own a home, 93 percent anticipate that they will do within five years. This is ahead of the global average of 96 percent.
The report looks a global home ownership collecting 9,000 responses across Australia, Canada, China, France, Malaysia, Mexico, United Arab Emirates, UK and the US. With the aim to understanding millennials’ perception on property. Plus advising how this demographic can reach the first wrung of the property ladder and drawing on any obstacles that could get in their way.
The increased numbers of affordable housing and transport infrastructure in the pipeline in Malaysia will also help maintain values for millennials’ advantage. There is a strong demand for properties up to MYR 500,000 to satisfy the needs of millennials.
Despite three-quarters of millennials wanting to own their own property, many do not have access to a deposit to make it happen. 43 percent feel that they there are in a position where they cannot afford the property they would prefer. But in order to change this, 62 percent would cut back on spending money on leisure activities, 23 percent would consider clubbing together with a family member to be able to afford to buy property, and 41 percent would reduce their expectations in terms of the size of their desired property.
HSBC advise that for millennials to reach the first rung on the property ladder, they need to:
- Start saving early for a deposit.
- Have a contingency beyond their budget.
- Assess their finances in order to get a clear picture of affordability.
- Consider reducing daily outgoings in help save for property.